光电公司ERP/SAP导入案例分析

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个案四
光电公司ERP/SAP导入案例分析
1
个案四:光电公司ERP/SAP导入案例分析
Table of Contents
1 Introduction..........................................................................................................77
1.1 Background..................................................................................................88
2 Project Objective................................................................................................910
3 Implementation Strategy..................................................................................1416
3.1 Implementation Strategy..........................................................................1416
3.2 Roll-out Strategy of SAP Implementation...............................................1518
4 Project Scope...................................................................................................1618
4.1 Process scope...........................................................................................1719
4.2 SAP Functional scope..............................................................................1923
4.3 Data Conversion scope............................................................................2023
4.3.1 Data Conversion Scope....................................................................2024
4.4 Organizational scope................................................................................2124
4.4.1 Organizational Scope.......................................................................2225
4.5 IT Infrastructure scope.............................................................................2225
4.5.1 IT Infrastructure Scope....................................................................2226
4.5.2 System Integration Model................................................................2326
4.5.2.1 VL's Role.....................................................................................2528
4.5.2.2 Hardware and Networking Vendor's Role..................................2630
4.5.2.3 Third Party Tools Vendor's Roles...............................................2832
4.5.2.4 Other Roles for all........................................................................2934
4.6 Interface scope.........................................................................................3034
4.6.1 Interface Scope.................................................................................3034
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4.7 Technical Enhancement scope.................................................................3136
4.7.1 Technical Enhancement Scope........................................................3237
4.8 Reports & Forms......................................................................................3237
4.8.1 Reports and Forms Scope................................................................3337
4.9 Programming Resource............................................................................3338
4.10 Training Plan........................................................................................3539
4.10.1 Basic Training Courses....................................................................3539
4.10.2 Advance Training.............................................................................3640
5 Implementation Approach...............................................................................3842
5.1 Multi-sites Project Consideration............................................................3943
5.2 Project Approach.....................................................................................3943
5.2.1 Multi-Sites Design Approach..........................................................3944
5.2.2 Multi-Sites Testing Approach..........................................................4044
5.2.3 Multi-Sites End User Training Approach........................................4044
5.2.4 Multi-Sites Go-Live Approach........................................................4044
5.3 VL SAP R/3 Accelerated SAP Approach................................................4045
5.3.1 ASAP Roadmap...............................................................................4348
5.3.2 The Project Phases...........................................................................4348
5.3.3 Phase 1 - Project Preparation..........................................................4449
5.3.4 Phase 2 - Business Blueprint...........................................................4551
5.3.5 Phase 3 - Realization........................................................................4752
5.3.6 Phase 4 - Final Preparation..............................................................4854
5.3.7 Phase 5 - Go Live & Support:.........................................................4955
5.4 Project Quality Assurance........................................................................4955
5.4.1 Review Approach.............................................................................5056
5.4.2 Review Timing.................................................................................5157
5.5 Mobilization of WP user personnel by phases.........................................5157
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6 Project Plan......................................................................................................5258
7 Project Team Structure....................................................................................5866
8 Work Break down Structure............................................................................6169
9 Project Cost....................................................................................................91107
9.1 Project Cost............................................................................................91107
10 Project CSF & Project Risk.......................................................................92108
10.1 Project CSF........................................................................................92108
10.2 Project Risk........................................................................................95112
11. Appendix........................................................................................................96112
11.1 Roles & Responsibilities................................................................................96113
11.2 Deliverable Summary..................................................................................107127
11.3 Reference & Data/Requirements collection.................................................111131
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个案摘要
企业资源规划系统(Enterprise Resource Planning,简称ERP),是整合企
业内部流程与管理,将财务,生产,销售和人事等所有流程重新整合与及时连
接,提供企业内资源规划与及时决策支援工具.
本案例分析希望能够以个案公司研究的方式,实际参与企业内部对於企业
资源规划系统的导入与实作,以导入SAP为实际案例来探讨,并参考企业资源
规划系统相关文献,探讨企业导入企业资源规划系统的效益,架构出企业资源
规划系统绩效评估制度,协助个案公司在导入企业资源规划系统之後能够衡量
企业资源规划系统有形可量化的效益及无形的不可量化的效益,建立一套符合
个案公司现况的企业资源规划系统绩效评估架构,作为个案公司管理企业资源
规划系统的参考.并做为其他已导入企业资源规划系统之企业作为衡量企业资
源规划系统绩效及管理之参考.
本案例分析的目的如下:
1. 了解企业资源规划系统的意义.
2. 了解企业资源规划系统的导入原因,方法及效益.
3. 了解企业资源规划系统及资讯科技效益的评估方法.
4. 针对个案公司,架构出企业资源规划系统效益的评估方法.
WP光电股份有限公司历经长时间的系统评估,终於选择VL科技系统整合
顾问公司来辅助WP光电导入企业资源规划系统［Enterprise Resource Planning,
简称ERP］,藉著整合企业内部流程与管理,让WP光电能到达世界级供应练管
理秉略的愿景.本专案乃结合SAP与VL科技,同时以VL科技为主导的SAP团队
,由双方提供人员,流程及产品的合作网,以专业经验传递快速,整合与准确
的解决方案.本专案的范围包含 SAP R/3 行销分配(SD),物料管理(MM),生产
计划(PP),财务(FI),成本控制(CO)等模组先行建置於竹南厂区,未来将扩及海
外厂.
由於本专案的建置将分两阶段实施:
PP/MM/FI Phase I : June 4, 2001 ~ Dec. 21, 2001
CO/SD Phase I : Sep 3, 2001 ~ Apr. 21, 2002
PP/MM/FI Phase II : Dec. 24, 2001 ~ Jul. 1, 2002
PP/MM/FI Phase II : Apr. 22, 2002 ~ Oct. 1, 2002
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Abstract
Enterprise Resource Planning system (ERP) integrates accounting, finance,
production, sales distribution, material management processes by means of an
information system that helps enterprise to allocate their resources. ERP offers intra-
enterprise resource planning and real-time decision support tools.
This document reports the consulting work for the planning and implementation
of ERP/SAP at WP Optoelectronics Corp. The consulting work covered three aspects:
process performance improvement, individual/work group productivity/decision
quality improvement, and competitive advantage. The goal is to establish the
performance evaluation indicators for the case company. The performance evaluation
indicators were used to evaluate the tangible and intangible benefits of enterprise
resource planning system. The actual environment of the WP Optoelectronics was
considered to fit its present conditions well when building the performance evaluation
indicators. This consulting work tried to establish an evaluation system for the WP
Optoelectronics and a reference for other companies that had implemented ERP
systems.
The objects of this consulting project are:
1. To realize the meaning of enterprise resource planning system.
2. To understand the motivations, steps, and benefits of enterprise resource.
planning implementation.
3. To clarify performance assessment methodologies of enterprise resource planning
system and information technology.
4. To establish the performance evaluation indicators of enterprise resource
planning system based upon the situations of the case company.
After a long time survey by WP Optoelectronics Corp.(WP), VL Integrated
System, Inc. (VL) was selected to assist WP in implementing an Enterprise Resource
Planning (ERP) system that will enable WP to achieve the vision of having a World
Class Supply Chain Management Strategy.
This consulting project was a joint collaboration between SAP and,
predominantly, VL. A project team was organized by SAP to provide a coordinated
network of people, processes and products from SAP and VL to deliver a fast,
integrated and assured solution leveraging on the strengths and expertise of both
companies. The scope of this consulting project covers the implementation of SAP
R/3 Sales and Distribution (SD), Materials Management (MM), Production Planning
(PP), Financials (FI), Cost Controlling (CO) modules for rollout in Taiwan (Chun
Nan) and overseas in the future.
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1 Introduction
VL Integrated System, Inc. (VL) was established in Aug. 1998, subsidiary of Delta
Group, VL have:
- Experienced Consultants with both Industry Operation and Software
Implementation
knowledge
- Skillful Software and Hardware Engineers
- Strong research and development team
- Well-established Customer Service and Support System
To assist WP Optoelectronics Corp. (WP) in implementing an Enterprise Resource
Planning (ERP) system that will enable WP to reach vision of having a World Class
Supply Chain Management Strategy.
VL's recommended approach for WP was based on :
The understanding of WP's business requirements through the Planning and
Assessment Study
The extensive work with clients in the high-tech industry, namely semiconductors,
peripherals and components who are faced with multi-country implementations
A proven integrated Change Management and Implementation Methodology (i.e.
ASAP)
The determination to provide a holistic and good quality solution on every project
that we undertake
This project was a joint collaboration between SAP and VL with VL being the prime.
It was a TeamSAP initiative, providing a co-ordinated network of people, processes
and products from SAP and VL to deliver a fast, integrated and assured solution
leveraging on the strengths and expertise of both companies.
The scope of this project is limited to the implementation of SAP R/3 Sales and
Distribution (SD), Materials Management (MM), Production Planning (PP),
Financials (FI), Cost Controlling (CO) modules for rollout in Taiwan (Chun Nan) .
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1.1 Background
WP Optoelectronics Corp., was founded in 2000, major investors include the Compal
Group (43%), President Enterprise (33%), and Teco Group (17%). The first plant in
Chun Nan Industrial Zone was commenced on Feb. 25, 2001, with total investment of
48 Billion NTD. WP is the 4th LTPS TFT-LCD manufacturer in the world, (Toshiba,
Sanyo, Sony of Japan). LTPS TFT-LCD is based on 3.5 generation LCD technology
using Glass Subtray of 620 mm x 750 mm specification. The display panel can be
used on Digital camera, Mobile phone, GPS navigation, PDA with size ranging from
2 to 6 inches. The clean room facility is expected to complete by the end of this year,
trial run will be in Mar. 2002 and mass production is projected in Q2 2002. The initial
capacity is 30,000 pcs per month, and will reach 65,000 pcs in Q4, 2002. The
estimated revenue is 6 to 8 Billion NTD in 2002 and will reach 80 to 100 Billion
NTD in 2004 after the 2nd plant is completed (data source: Economy Daily News,
Feb. 2001).
The production process of LTPS TFT-LCD can be divided into two sections.
The critical success factors for WP Electronics Inc. are:
customer focus (including selecting the Right Customers)
quality in product design and automation
flexibility
cost control
availability of staff and skills
ability to compete in a global market
supplier management
application of advanced technology in product and process.
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The following lists the company's key change drivers:
Change Drivers Priority
Industry Standardization
Major customers' leverage
Demand for new product line
Passive change in mind-set
Distributed decision making process
Demand for new line of business in TFT-LCD
Seamless integration with customer's business
Shortage of qualified personnel
Planning and budgeting (month end close)
E-Commerce
Internet/Intranet
Visibility of inventory through process chain
High
High
High
High
Medium
High
Very High
Very High
High
Very High
Low
Medium
2 Project Objective
The project objective is to implement an ERP system that will support global business
operations and meet the business requirements of a fast-growing and increasingly
competitive business environment.
The following defines the main business objectives, requirements and benefits of this
implementation which will support the above project objective:
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Accounting / Controlling
Objectives
Business
Requirement/Issue
Potential Benefit of the ERP
Implementation
SAP Module
Online, accurate and
integrated financial and
management report
Facilitates faster and better
decision-making
FI/CO
Accurate and effective
budget(include capital)
planning, control and
processing
Better cost control and
planning at different level of
organization
CO
Accurate product cost
planning, calculation and
control
Possibility to analyze each
component items in the cost
of goods manufactured and
use cost of goods sold by
each product unit
CO, CO-PC
Shorten month end closing
time (3 days)
Reduce closing cycle time
Less time needed for
reconciliation
FI/CO
Shorten AP, AR
processing cycle time
Reduced processing time
due to integration of
applications
SD/MM/FI
Ability to track AP,AR
processing status and
reporting
Identify potential Bad Debt
and improve cash
management
FI
Better service to
business
unit/management
team
Flexible and accurate
credit control
Automatically approve 80%
of orders through a series of
automated checks in the
order entry/credit systems
FI/SD
Integrated accounting
system with logistics
system without double
key-in effort or batch
transfer transactions
Shorten processing time;
provide up to date
information and increase
communications between all
level within organization
Integration of
the various
SAP R/3
modules
Change from
transaction
oriented to
decision support
oriented
Online and advanced
reporting and analysis
tools
Facilitates faster and better
decision-making
FI/CO
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Accounting / Controlling
Objectives
Business
Requirement/Issue
Potential Benefit of the ERP
Implementation
SAP Module
Ability to perform
accounting operations for
the various sites from one
single logon
Management has ability to
view financial data quickly
therefore able to make quick
and better decision
FI/CO
Streamline the accounting
process across multiple
sites
Shorter Process Cycle Time,
Standardizes procedures and
share resources.
FI/CO
Centralized
accounting
process
Inter-company transaction
process
Improved inter-company
communications
FI/CO
Logistics
Business
Objectives
Business
Requirement/Issue
Potential Benefit SAP Module
Stream line logistics flow
and process among HQ,
subcontractor, sales
branch & warehouse and
overseas plant.
Eliminate non-value added
activity & increase
productivity
MM/PP Outsourcing to
subcontractor or
overseas plant
Clearly define
subcontractor or overseas
plant operations from both
financial and logistics
point of views
Standardize work process
procedures for resources
planning
MM/PP
Good in transit stock
control
Avoid price variances
issues, provide information
for accurate Material
Requirement Planning
MM
Special stock
(Consignment, material
provided to vendor)
control
Accurate information on
Work In Progress for Job
order Gross Margin
Reviews
MM/PP
Global logistics
Global inventory visibility
and control
Minimize over stock risk
and Obsolete Products
Issues
MM
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Logistics
Business
Objectives
Business
Requirement/Issue
Potential Benefit SAP Module
Supply network planning
*
Reduce inventory level &
cost, Reduce Transportation
Cost
SCM
Item master naming
convention consolidation
Increase communication
efficiencies
MM
Using E-commerce
technology to reduce
processing and tracking
cycle time and increase
data accuracy
Manpower cost saving EDI, Internet
Long term contract or
blanket order processing
Reduce procurement cost MM/PP/FI/CO
integrated the process of
purchase cycle from MRP
output to PO and to
payment.
Reduce system process time
with integrated system ( FI /
CO, PP, MM )
Reduce
purchasing cycle
time and cost
Vendor evaluation Evaluation on historic data
for fast decision making
MM/QM
Using E-commerce
technology to reduce
processing and tracking
cycle time and increase
data accuracy
Manpower cost saving and
reduce process cycle time
EDI, Internet
Reduce internal supply
chain cycle time from
sales order, production,
shipping to billing
Reduce process cycle time,
increase customer
satisfaction
SD/MM/PP
Reduce order
fulfillment cycle
time
Better sales and
production integration
Reduce inventory and cost
& Increase manufacturing
productivity
SD/PP
Increase services
level
Rush order handling *
Order tracking
Greater flexibility on sale
order cycle and Customer
satisfactions
SCM,
SD/PP
Reduce response
time *
Quick and accurate
availability to promise
(ATP)fld
Real-time response that
provides accurate up-to-date
dfiititd
SCM
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Logistics
Business
Objectives
Business
Requirement/Issue
Potential Benefit SAP Module
(ATP) for sales order definite capacity and
material constraints
Access material and
production planning
system of different sites in
the same screen
Reduce operation cost,
Increase planning
productivity
MM/PP Central material
and production
planning
Streamline the material
and production planning
strategy across multiple
sites and planning
centrally
Increase planning
efficiency, share production
resources across site
MM/PP
Access purchasing system
of different sites in the
same screen
Reduce facilities and
administrative cost and
personnel costs
MM Central strategy
purchasing
Central purchasing
organization for different
sites
Increase buying power,
better discounts and provide
first hand information on
committed cost
MM
make to order production
process
Reduce long term Sale and
Administrations cost
SD/PP Virtual plant for
customer
Sales order and production
order tracking capability
Increase customer
satisfactions
SD/PP
market and customer
demand forecast
Operating expense reduction
better demand forecast
integrate branch forecast
with HQ forecast, then
convert to production
planning
Increase communication
efficiency and reduce
document handle time
SD/PP
Market demand
coverage
rough cut capacity
planning
Increase productions
resources usage
PP
Note: * indicates only achievable with use of extended supply chain
management(SCM) tool (eg. APO…). From the pilot project that VL has undertaken
jointly with SAP in WP, VL understood that WP's major requirements for SCM
system covers long term planning, global sourcing, flexible operational planning and
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global ATP and CTP. These requirements would be considered as part of the
requirements in the design for the new ERP system.
3 Implementation Strategy
3.1 Implementation Strategy
VL recommend that WP undertake an implementation strategy covering the
following:
Implement SAP R/3 across majority of WP business operations and use this
implementation as the best practice of WP's business processes
Integrate SAP with selected Extended Supply Chain Management function
Implement Data Warehousing to support decision making
VL further suggest WP to undertake the implementation according to the sequence
listed above. With the implementation of SAP R/3, WP is able to fulfill its needs for
efficient operation planning and execution. The introduction of Extended SCM
package on or immediately after the ERP implementation would further provide WP
with enhance capability in tactical planning. VL recommend that WP to introduce
Data Warehousing only after the implementation of ERP and Extended SCM. With
the introduction of Data Warehousing, WP's capability in achieving better strategic
planning.
Since user team and IT staff are not fully on board, we recommend WP use SAP's
PCC (pre-Configured Client) with 50 users as the starting point for the first phase.
The PCC will be used as the communication tool, Sandbox, Project training after the
Project Preparation of the ASAP Roadmap of the SAP R/3 implementation as
described in the following chart:
14
Pre-Configured Industry Systems model the functionality of one specific industry in the R/3
system and can be installed in a customer system. They serve both as a training environment in
the customer system as well as a template for the company-specific configuration of the R/3
system.
Pre-Configured Industry Systems include:
An industry specific reference structure that describes industry relevant business
scenarios and processes and is characterized by industry specific terminology.
The system settings or customizing that make every business scenario executable.
Master data to run each business scenario based on a specific example.
Documentation and presentations with examples from the industry in question.
3.2 Roll-out Strategy of SAP Implementation
PP/MM/FI Phase I : June 4, 2001 ~ Dec. 21, 2001
PP/MM/FI Phase II : Dec. 24, 2001 ~ Jul. 1, 2002
CO/SD Phase I : Sep 3, 2001 ~ Apr. 21, 2002
15
PP/MM/FI Phase II : Apr. 22, 2002 ~ Oct. 1, 2002
VL will be pleased to supply further details to support the other implementations as
recommended above.
4 Project Scope
There are eight key areas which affect the scope of the project. Each of these areas
need to be considered in order to develop a comprehensive view of project scope.
These eight levers are:
Process Scope - includes process chains, functions, processes and tasks
SAP Functional Scope - SAP R/3 functionality to be implemented
Data Conversion Scope - data conversion efforts to create the opening data for the
new system
Organizational Scope - business unit/divisional scope, geographic scope and job
scope
IT Infrastructure Scope - hardware, software and communications scope for the
development, test, training, production and other environments
Interface Scope - expected interfaces to and from the SAP system
Technical Enhancement Scope - defining custom development, SAP 'bolt ons' or
modifications or exiting system reengineering requirements
Reports & Forms Scope - exceptional reporting and form generation requirements
Changes to each of these levers of scope will affect the timing, cost and control of the
project. It is therefore critical that the impact of any changes is clearly understood and
carefully managed. The following sections will define the scope levers identified for
WP Electronics Inc.
This project is a fix term project,therefore VL provides guidance, consultancy,
facilitation, and help to ensure the success of SAP R/3 implementation project.
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4.1 Process scope
Planning Process areas
Value Chain Process areas
Support Process areas
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The above are the processes and functions defined for WP Electronics Inc. Processes
shaded are not included in the scope of this proposal.
The following are details of the processes included in the scope of the proposal. All
sub-processes not specified here should be included in the scope of this proposal
according to the process definition in Assessment and Planning project. The
wish/issue items identified in assessment and planning phase that can be addressed by
SAP R/3 and fall within the following processes should be considered as in the scope.
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Manage Supply/ Demand Planning
Manage Demand Forecast
Manage Inventory
Manage Supply Chain Capability Utilization
Manage Customer Orders
Enter Process & Track Order (by lot)
Handle Inquiries & Provide Customer Support Services
Handle Complaints/Warranties/Claims/Returns
Procure Materials/Services
Develop Sourcing Strategies
Select Suppliers & Develop/Maintain Contracts
Appraise & Develop Suppliers
Order Materials/Services
Purchase Requisition
Accounts Payable Payment (combined to process accounts payable)
Import (combined to manage inbound logistics)
Produce Products/Services
Schedule & Plan Production/Services Delivery
Perform Production Control & Management
Produce Products/Deliver Services
Manage Logistics/Distribution
Manage Inbound Logistics
Manage Warehouse/Distribution Center Operations
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Manage Outbound Logistics
Physical Inventory
Bonded Warehouse System
Manage Corporate Services/Facilities
Develop & Administer Records Management
Plan & Obtain Facilities
Manage Financials
Evaluate & Manage Financial Performance
Manage Internal Control/Audit and Establish Financial Policies & Procedures
Develop & Manage Budget
Perform Fixed Asset Management & Accounting
Manage Cash
Perform Capital Allocation/Capital Expenditure Control
Process Accounts Payable/Process Expense Reimbursement
Process Accounts Receivable/Perform Inter-company Billing/Administration
Process Customer Credit Management & Process Collections
Perform Cost Management
Perform Cost Accounting & Control
Perform General Accounting/Perform Closing/Process Taxes
Provide Financial Reporting
4.2 SAP Functional scope
The SAP modules to be implemented for this project are:
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Sales & Distribution
Materials Management/Warehouse Management
Quality Management (IQC only)
Production Planning
Financial Accounting (include Special Purpose Ledger and Legal Consolidation)
Asset Management
Investment Management/Project System
Controlling
CO-CCA Cost Center Accounting
CO-PC Product Cost Controlling
CO-PA Profitability Analysis
CO-PCA Profit Center Accounting
4.3 Data Conversion scope
Master Data Batch Input
For the integration of Phase I and Phase II
4.3.1 Data Conversion Scope
4.3.1 Data Conversion Scope
WP only convert data required to operate the business
WP be responsible for data cleansing strategies and actual data cleansing on the
source legacy systems.
WP and VL identify data selection requirements
VL and WP are jointly responsible for data mapping of the current master data to
SAP master data
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WP ensures data integrity across legacy systems
No historical data will be converted except open items as in principle (i.e.
production orders, purchase orders, etc)
Financial balances will be converted 'as of' start date' via journal entry (i.e. year-
to-date and/or inception-to-date)
There is no conversion of individual document history as in principle.
Low volume data is converted manually
WP is responsible for executing the automated data conversion programs, VL is
responsible for reviewing the result
WP is responsible for hiring the necessary manual data entry resources
WP is responsible for reconciling and signing off converted data prior to cut-over
4.4 Organizational scope
The organizational scope for this project is defined below:
Chu Nan plant - MM/PP/FI Phase I - 6 months
CO/SD Phase I - 7.5 months
MM/PP/FI Phase II Enhancement and Customizing - 6 months
CO/SD Phase II Enhancement and Customizing - 6 months
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4.4.1 Organizational Scope
Project Schedule
MM / PP /FI
Phase 1
6/4 7 8 9/3 10 11/1 12/21 1 2 3 4/215 6 7/1 8 910/1Time Time Phase Phase
MM / PP / FI
Phase 2
(6/4 - 12/21, 2001)
CO / SD Phase 1
4/21 - 10/1, 2002
9/3,2001 - 4/21, 2002
12/21 - 6/30, 2002
CO / SD Phase 2
WP realizes that the strategy of utilizing leveraged processes may be disruptive to
the business and a fast track implementation may result in users having difficulty
adapting to the changes that the system will bring. WP assigns the necessary Change
Management resources to effectively deal with these issues should they occur and/or
have any adverse effect on the project
4.5 IT Infrastructure scope
VL bases on the next section 'system integration model' to provide the services to WP
to make sure that the IT infrastructure can fully support SAP project implementation.
4.5.1 IT Infrastructure Scope
WP is responsible for liaising directly with their 3rd party tools, hardware and
networking vendors for any matters related to the contractual and/or maintenance for
their hardware, networking, system performance, operating system or database
system. Issues which arise from any upgrades and are related to the hardware, system
22
performance, operating system or database should be conveyed to the responsible
vendor for resolution.
Data Archival is not included in the scope of this project.
WP procures the necessary software needed for the documentation of the
deliverable. VL propose to use VL SAP R/3 Toolkit without additional charge to
handle some documentation work, WP can decide to use it or not later.
WP provides each team member including consultants with a Pentium based PC.
VL provides WP with the specification required for the PC.
WP provides each team member including consultant with an e-mail id.
VL provides QA services and co-ordinate the master schedule to WP project
management team to ensure that the IT infrastructure is fully integrated with SAP
system.
WP and VL both take the role of co-ordination and management for system
integration among all their 3rd party tools, hardware/networking vendors and VL.
4.5.2 System Integration Model
This chapter will describe the system integration model among the 3rd party tool
vendor, H/W & networking vendor and VL, and detail the responsibilities of each
party.
The production SAP environment will include the following layers
Report Generator
Data Migration/Interface Tool
(Data Conversion, interface-
Batch and/ or Online )
SAP
DB(Oracle)
H/W and OS
23
Networking (LAN, WAN)
VL plays the major system integrator role to integrate all the services and product of
each layers provided by each vendor to ensure that all the IT infrastructure can
support the SAP implementation successfully. As a system integrator, the major
responsibilities of VL are
To co-ordinate and manage milestone schedule for each vendor
To do quality assurance for all vendors' products and services
To co-ordinate and manage trouble shooting for any issue that crosses different
layers
To request the necessary supports and services from others vendors to make sure
all layers of SAP environment are fully integrated.
3rd party tool vendors and H/W & networking vendors need to base on VL's
milestone schedule to deliver their products and services under VL's quality
assurance. Since VL doesn't really subcontract to and control the vendors, therefore
VL like to define the following responsibility model of production SAP environment
for future co-work among all vendors and VL.
ERP related layers Product/Administration
tool Provider
Service Provider
Networking (LAN, WAN) Vendor Vendor
H/W and OS Vendor Vendor
DB(Oracle) SAP VL/Oracle
SAP/Legacy system SAP/Legacy VL/WP
Data Migration/Interface Tool
(Data Conversion, Interface -
Batch and/or Online)
3rd party vendor 3rd party vendor
Report Generator 3rd party vendor 3rd party vendor
The Product/Administration tool Provider is responsible to provides the
24
Product/Administration tool products and Service Providers are responsible for the
services related to product and administration tool. The services scope includes
planning and sizing of the product, installation, training, after sale
support/maintenance, defining operation procedure, performance tuning and other
services unique to the product and administration tool(like development support for
3rd party tool, Disaster Recover Planning for H/W, networking ). If other vendor can
provide the DB (Oracle) administration tool and related services, it is encouraged.
4.5.2.1 VL's Role
Except the system integrator role, VL also provides the SAP Basis consultant service
and know-how transfer service to WP and the following is the detail,
Complete the SAP installation with participation from a certified Basis team
member.
Database Instances Installations. Support require from Vendor on Configure OS
(Required patches, Files System Layout, Swap etc).
Configuration of SAP Router and the establishment of a network connection for
OSS access;
Set-up Language / Locale / Code page environment.
Install Language Transaction / Supplement.
Apply Patches / Hot Packages.
Set-up Required Clients.
Users Ids creations and PC Front End Configurations.
CCMS & SAPDBA Set-up (SAP).
Basis start up and DRP service
Installing the SAP Pre-configured Industry Template
Install the Template and Configure SAP. Configure the IMG by following the
step-by-step configuration scripts of the VL Industry Hi Tech Template.
Test the Template - Testing template function as desired. Execute transactions,
25
and adjust the template accordingly
Administration and support activities
Performance Tuning - OS/DB/SAP Buffers ( Vendor Support Required ).
Backup and Recovery of System . ( Vendor Support Required ).
Database maintenance - Datafiles, Reorganization, max extent, next extent etc. (
Vendor Support Required).
System Health Check via OS Logs , DB logs etc. ( Vendor Support Required )
Transport and Corrections.
Define system/basis operation and administration, DRP procedure & executable
manual
Pre-Production Phase.
Stress Testing, Production Performance Tuning. ( Vendor Support Required )
Migration of Tested Development work to Production System ( Vendor Support
Required)
Profile assignment.
ABAP/4 coding performance monitoring support
Going Live Phase
System Utilization. ( Vendor Support Required )
Trouble shooting
4.5.2.2 Hardware and Networking Vendor's Role
Vendor is major responsible to ensure that the Platform and Environment proposed
(e.g. Hardware, System and Database Software, Communication, Network and etc)
are able to support WP's requirement for developing, testing and implementing an
ERP system using SAP.
26
Planning and Installation
Analyse and size accurately the system landscape for development, test and
production environment, also the underline network infrastructure.
Verify language/code page environment supporting double byte characters (eg.
traditional Chinese, simplified Chinese) for SAP
Manage facility to ensure proper and uninterrupted operation of proposed system
covering electrical power requirements, UPS, backup generator, floor space, air-
condition, WAN/LAN and telecommunications implementations
Install and configure hardware, networking and related equipment
Install and configure operating system / file system and upgrade patches
Provide formal hand-over documentation for hardware, OS, networking and other
related products
Provide detail support plan covering all the activities and responsibilities required
to support the SAP platform
Schedule and co-ordinate resources jointly with WP, VL, SAP and 3rd Party Tool
vendors for product implementation, maintenance, and upgrade
Administrations Tools / Products Training
Provide tools and hands-on training/know-how transfer
Manage kernel, file, security and operating system
Administer and manage database, storage and other related
Monitor and tune performance
Manage printers/spoolers
Ensure sufficient after training support
Manage networking operation and performance
Service and Support
Provide around the clock, 7 days maintenance support. Response time is expected
to be within 2 hours
Ensure immediate parts availability for replacement
Provide toll free 24 hours trouble-shooting hot-line
27
Provide and perform products upgrade
Operating procedures/executable manual - H/W, OS and Networking System
specific
Define and implement backup/recovery procedures
Define and implement system operation/administration procedures
Design and introduce disaster recovery plans
Ensure high availability for system
Define data center management procedures
Support 3rd Party Tool Vendor's and VL's activity by request
Activities mark as '( Vendor Support Required )' listed in 3rd Party Tool Vendor's
and VL's Role
Installation
Administration /Support and Performance Tuning
Trouble Shooting
Stress Testing and data migration
Other activities that need support from H/W and Networking Vendor
4.5.2.3 Third Party Tools Vendor's Roles
Vendor is responsible to ensure that the tools proposed (e.g. Data
conversion/Reporting Tools) are able to support WP's requirement for developing,
testing and implementing an ERP system using SAP.
Planning and Installation
Analyse and size accurately target system environment (covering storage,
hardware and network requirement) for execution of tool
Ensure target environment is fully compatible with SAP Platform
28
Install and configure the tools to execute on the target platform
Ensure all other related products required for the tools are acquired, installed and
configured
Provide formal hand-over documentation for all products installed
Provide detail support plan covering all the activities and responsibilities required
to support proposed solutions
Schedule and co-ordinate resources jointly with WP, VL, SAP and Hardware
vendors for product implementation, maintenance, and upgrade
Provide detail support plan covering all the activities and responsibilities required
to support project implementation
Schedule and co-ordinate resources jointly with WP, VL, SAP and 3rd Party Tool
vendors for product implementation, maintenance, and upgrade
Tools Training and Support
Provides hands-on training
Ensure sufficient after training support
Define and implement operation/administration procedures
Development Support and Outsourcing Based on WP Request
Provide consultant to perform data conversion/report design, coding and
implementation upon request
Ensure coverage of security, policies and procedures
Ensure coded deliverables are properly tested and adhering to standards
Provide issue resolution and trouble-shooting support during the implementation
4.5.2.4 Other Roles for all
3rd party tool vendor, H/W & networking vendor and VL all need to assign one
dedicated co-ordinator to attend co-ordination meeting by month and by request.
29
There are some roles or activities that are difficult to list down so far, and they are
critical for SAP successfully implemented. If they are identified and clearly agreed
during the co-ordination meeting, 3rd party tool vendor, H/W & networking vendor
and VL have the responsibilities for their own activities.
Determination of the proposed IT infrastructure (including H/W, S/W, 3rd party tools,
service, networking etc.) for the SAP implementation is the responsibility of WP. VL
consultants shall follow the WP Standard Operation Procedure (SOP).
4.6 Interface scope
CIM-MES link with PP, MM-WIP, FI/CO, QM in production. VL provides the
necessary resources required for interface as defined in "4.9 Programming
Resources".
4.6.1 Interface Scope
WP and VL both co-ordinate and work with 3rd party vendors for interfacing with
SAP (e.g. bar-coding)
WP and VL co-work to solve interface issues across multiple platforms (e.g.
interfaces from PC to SAP and vice versa )
Interface programs were designed to be batch driven, re-usable and modular,
where possible
Both WP and VL are responsible for any issues regarding interface connectivity
(e.g. data communications, network infrastructure, security, user access) between the
various existing systems and SAP
WP provides estimated volumes (average and peak), frequency (eg. on demand,
monthly, weekly), method (eg. ad hoc, automated), type (eg. batch, on-line), audit
trail requirements (eg. audit log details) as part of technical specifications for
interfaces
Internet/Auto-Fax, software setup and administration were be done by WP.
For Inbound Interfaces:
WP provides the incoming data format for inbound interfaces
30
Inbound interfaces into SAP is via the files that are agreed by WP and VL (unless
explicitly stated)
No inbound interface program shall update SAP tables directly. All inbound
interface programs shall use SAP transactions (either in batch or on-line mode) to
update SAP tables
Error checking for inbound interface data were done based on data stored in the
SAP database
Extraction programs from non-SAP systems for inbound SAP interfaces are
written by Real Case
For Outbound Interfaces:
Outbound interfaces are in SAP-supported file formats (e.g. ASCII, Excel)
Update programs for non-SAP systems were written by WP
File format from Bank/Post Office is compatible to SAP Bank Reconciliation
Program
4.7 Technical Enhancement scope
The following are the SAP functionality gaps identified for the project:
Technical Enhancement Scope
The following was custom developed using ABAP programs and were included as
bolts-on to existing SAP R/3 functionality by VL:
Notes Receivable and Payable
Government Unified Invoice
Out of Scope
The following are not included within the functionality of SAP R/3 system. Interface
was considered to be built to the following systems and followed the interface scope
chapter.
Bonded System
31
Physical Inventory
Shop Floor Management System - MES
Enhance SCM Package e.g. SAP APO
Commission Calculation to Payroll and Financial System
Product Information Management
RDR, NPPR, Issues etc. Tracking System
Import & Cargo Tracking System
Export and Custom System
Bar Coding System ( eg lot tracking )
4.7.1 Technical Enhancement Scope
No changes are made to the SAP-supported source program code and SAP-
delivered objects (which include configuration tables, master files, documents, match
codes, screens/windows, report formats and data elements)
In the event that modification to the original SAP source code is unavoidable,
such modification work referred directly to SAP itself and was initiated after the
approval by the Steering Committee
All additional custom development activity, beyond the scope of those items
identified in this document, will need to be governed by a separate project plan and a
separate contract with details of fees and consulting team structure.
All interfaces and custom developments were constructed based upon technical
infrastructure which supports TCP/IP connection.
4.8 Reports & Forms
Actual reports and forms scope were defined during design stage. VL provides the
necessary resources required for reports & forms as defined in "4.9 Programming
Resources".
32
4.8.1 Reports and Forms Scope
Process Owners set directions on the definition of critical reports and conditions
under which they supplied as SAP custom reports.
The rationalized list of critical reports were analyzed for criticality and SAP fit as
early as possible during the Design Stage.
WP uses standard SAP-delivered forms wherever possible.
4.9 Programming Resource
During this project VL provided the resource to complete the following programs
(includes Data conversion, Interface, Technical Enhancement (add-on function) and
Report/Forms):
On-Line Program
Batch Program
Reports/Forms Program
VL provided one week ABAP workshop training and programming standard (eg.
naming convention).
33
4.10 Training Plan
4.10.1 Basic Training Courses
VL provided the following training to the WP project teams member, WP core teams and IS&S.
WP Core Teams Project
Kick off
Team
Buildin
g
R3
ASAP
SAP
Overvi
ew
SD
Function
ality
MM
Function
ality
QM
Function
ality
PP
Function
ality
FI
Function
ality
CO
Function
ality
SD 0.5 Day 1 Day 2 Days 2 Day 4 Days
MM 0.5 Day 1 Day 2 Days 2 Day 4 Days 1 Day
PP 0.5 Day 1 Day 2 Days 2 Day 4 Days
QM 0.5 Day 1 Day 2 Days 2 Day
FI 2Day4 Days
CO 0.5 Day 1 Day 2 Days 2 Day 4 Days
Change
Management
0.5Day 1Day 2 Days 2Day
Programming
Team
0.5Day 1Day 2 Days 2Day
** Project Team, Team Building and the SAP Overview courses can be conduct in different sessions for a combinations of different functional teams.
**ASAP Training conducted in Project Team Training sessions.
4.10.2 Advance Training
Course Configuration &
Organization in
Manufacturing
Configuration &
Organization in
Materials
Management
QM in
Material
Manage
ment
Advance
d R/3
Adminis
tration
Technical
Core
Comp.
UNIX /
Oracle
Basic
Techn
ology
SAPs
crip
Advanced
Functions
Report
Writer
EDI
Interf
ace
Assets
Accou
nting
Configuration &
Organization in
Project System
PP LO205
5 DAYS
MM LO550
5 Days.
QM LO715
23
DAYS
Basis BC305
3 DAYS
BC360
3 DAYS
SAP5
0
2
Days
Programm
ing Team
SAP5
0
BC46
0
CA710
2 DAYS
CA21
0
36
2
Days
5
DAY
S
3
DAY
S
FI - Fix
Assets
AC30
5
4
DAY
S
FI -
Project
System
CA800
3 DAYS
Course Configuration &
Organization
Financial
Accounting
Configuration &
Organization
Project System
Overhea
d Cost
Controlli
ng
Product
Cost
Planning
Profitabil
ity
Analysis
Profit
Center
Accounti
ng
Sales
Order
Processi
ng
Delivery
Processi
ng
Credit
Manage
ment
Financial AC200
5 days
Cost
Management &
Controlling
AC410
3 DAYS
AC415
2 DAYS
AC505
3 DAYS
AC605
4 DAYS
AC610
2 DAYS
SD Customer
Order
Management
LO605 LO610
4 DAYS2 DAYS
LO645
2 DAYS
37
**It is recommended that one or two members from each team to attend the recommended course and to be the chief instructors on skills transfer
**The detail schedule will base on SAP Taiwan training schedule and will be provided later.
38
5 Implementation Approach
5.1 Multi-sites Project Consideration
Our approach is based on the following considerations:
The need for convergence and streamlining of to-be business processes across all
implementation sites
The need for data harmonization for the following master data structure coding
across all sites
Common chart of accounts
Cost center structure
Material Master
Product numbers
Customer numbers
Vendor numbers
The need to train end users at all implementation sites
The need to test common and local site requirements scenario at all sites
Huge volume of live data that needs to be converted
5.2 Project Approach
As this project spans across many countries and it is not feasible for all WP's
personnel from overseas to be involved fulltime on this project, we have designed a
approach that minimizes the time that these overseas personnel need to be back in
WP's Taiwan headquarter whilst at the same time getting their involvement in key
milestones of the project lifecycle.
5.2.1 Multi-Sites Design Approach
In design phase, we separated the sites into 2 groups based on user availability and
then used different approach.
Group 1: Taiwan
39
WP assigned full time users to join project team as core team members to design the
to be process model
Group 2: Overseas
WP assigned full time users (either from or Taiwan) to join project team as core team
member to represent each site, to input the business requirements and to design to be
business model. After to be process model design is finished, to be process model
will be sent back to Overseas and reviewed by super users to finalize the design.
5.2.2 Multi-Sites Testing Approach
All unit test, string test, stress test, and scenario test were done by project team in
Taipei centrally. Super users in each site will do system test (user acceptance test).
Before the system test, project team needs to use walk through method to let super
users understand how to test the system.
5.2.3 Multi-Sites End User Training Approach
For end user training, we used 'train the trainer' concept. The trainers were selected
from super users based on the selection criteria's. Project team trained the trainers in
Taiwan centrally, including the trainers from overseas sites. And then the change
management team planned all training programs, and the trainer execute the training
program in all sites. The tasks are to prepare the training materials, to conduct the
pilot training, to deliver the training and to make sure end user is ready for the new
system.
5.2.4 Multi-Sites Go-Live Approach
The go-live of each site is a sub-project. We assign one sub team for each site, that
team was formed by super user, basis team, functional team and programming team
and were co-ordinated by change management team and project management team.
The main tasks are to prepare the production data, to execute data conversion, to
ready site readiness (production IT infrastructure), to ready system design, and to
ready the help desk and production support structure.
This project was implemented according to R/3's ASAP Methodology.
5.3 VL SAP R/3 Accelerated SAP Approach
Our experience with large, medium, and small scale information systems and
40
technologies, business process reengineering, and organizational change projects has
taught us that the results achievable using an integrated approach far exceed those of
projects based on traditional approaches, or those whose approaches evolve as the
project unfolds. Our approach to this project is employing the SAP R/3 ASAP
Approach. This approach defines a comprehensive framework for conducting large,
medium, and small enterprise system implementations using the SAP R/3 software,
seamlessly integrating information system implementation activities with the
disciplines of business process development and testing, change management, systems
development, project management, information systems risk management, and
technical infrastructure. ASAP incorporates experience from hundreds of SAP
projects and thousands of SAP consultants around the world, as well as the lessons
learned from our core change integration domain through its process definition,
change management, and organizational change practice areas.
AcceleratedSAP (ASAP) was the implementation solution provided by SAP. ASAP
integrates several components that work in conjunction to support the rapid and
efficient implementation of the SAP's R/3 System, Industry Solutions and New
Dimension products. The components that make up ASAP were :
Methodology - The ASAP Roadmap defines the phases of the implementation
process and supports these with a comprehensive project plan. The project plan
comprises MS Project templates providing complete work breakdown structures and
resource assignments.
Tools - The ASAP process was supported by a comprehensive set of both PC-based
and R/3-resident tools.
Service - Hotline, Consulting, Training, Project Reviews, SAPNet
Project related Knowledge like Project Management, Change Management, Risk
Analysis and Review Programs.
The new Implementation Assistant, which makes its debut with the 4.6a release,
provides a foundation for the future integration of all existing ASAP Roadmaps into
one "configurable" one. It is based on the R/3, BW (Business Information
Warehouse), APO (Advanced Planner & Optimizer), CRM (Customer Relationship
Management encompassing Mobile Sales/Mobile Services), and Bus to Bus Procure
(Business to Business Procurement) products to provide a single Implementation
Solution within ASAP for all of SAP's product offerings.
The Industry Business Solutions (combinations of products or product components
that meet the needs of specific industries) aimed at the Small-Medium Business
(SMB) will also have industry specific accelerators and pre-configured systems
tailored for their implementations. These 'Accelerated Solutions' will also have their
own, specific roadmap to help minimize the tailoring of ASAP for those
organizations.
41
Accelerators can be sample deliverables, sample forms, white papers, questionnaires,
spreadsheets, worksheets, etc., that help to expedite the implementation as well as
promote knowledge sharing and project ownership.
The exhibit below provides an illustration of ASAP. Please note that:
Overall, the approach consists of Five Phases: Project Preparation, Business
Blueprint, Realization, Final Preparation and Go-Live & Support.
The sequence of phases and tasks has been optimized to permit a high degree
of parallel activity.
Interconnecting lines represent dependencies and points of integration between
phases.
42
5.3.1 ASAP Roadmap
SAP AG 1999
Training, Licensing Training Material
(Knowledge Warehouse), Support, Project Reviews
Training, Licensing Training Material
(Knowledge Warehouse), Support, Project Reviews
Implementation
Assistant
Q&Adb
Implementation
Guide
Profile Generator
Transport System
AcceleratedSAP - SAP's Full Life-Cycle Solution
Project
Management
Organizational
Change
Management
Risk Analysis
Review
Methodology
Services
Project-
Related
Knowledge
Tools
ASAP Roadmap
Project
Preparation
Business
Blueprint
Realization
Final Preparation
Go Live &
Support
Continuous
Improvement
ASAPASAP
5.3.2 The Project Phases
Phase 1: Project Preparation - Provides initial planning and preparation for your R/3
project.
Phase 2: Business Blueprint - In this phase, you create the Business Blueprint, which
is detailed documentation of the results gathered during requirements workshops.
Furthermore, the Business Blueprint serves to document the business process
requirements of the company. On this basis, you will achieve a common
understanding of how the company intends to run their business within the R/3
System.
PhasNVDe 3: Realization - In this phase, you implement all the business and process
requirements based on the Business Blueprint. You configure the system step by step
in two work packages, Baseline and Final configuration.
Phase 4: Final Preparation - In this phase, you complete testing, end user training,
system management and cutover activities to finalize your readiness to go live.
43
Furthermore, the Final Preparation phase serves to resolve all critical open issues.
Upon successful completion of this phase, you will be ready to run your business in
your live R/3 System.
Phase 5: Go Live and Support - Transition from a project-oriented, pre-production
environment to successful and live production operation.
Continuous Improvement - Provide on-going support and assistance for post go-live.
It covers solutions for those activities which are standard in a productive environment:
Business changes; technology changes; or changes in the user community.
5.3.3 Phase 1 - Project Preparation
The purpose of this phase is to provide initial planning and preparation for your R/3
project. Although each R/3 project has its own unique objectives, scope and priorities,
the steps in Phase 1 help identify and plan the primary focus areas to be considered.
As you prepare for your R/3 implementation, there are important issues you must
address at the beginning of the project, including:
Defining your project goals and objectives
Clarifying the scope of your implementation
Defining your implementation strategy
Defining the overall project schedule and implementation sequence
Establishing the project organization and committees
Assigning resources.
By addressing these issues early in your implementation, you help ensure that the
project proceeds efficiently, and that you have established a solid foundation for a
successful SAP implementation.
Phase 1 consists of the following Work Packages: Initial Project Planning , Project
Procedures, Project Kickoff, Technical Requirements Planning, Quality Check and
Training Project Planning Phase.
Activities of Initial Project Planning:
Create and issue project charter
Review and refine implementation strategy
Establish project team working environment
Determine project organization
44
Prepare project plan
Create project team training plan
Activities of Project Procedures:
Define project management standards and procedures
Define implementation standards and procedures
Define system landscape strategy.
Activities of Training Project Planning Phase.
Create a project team training plan
Align end user training and documentation strategy
Activities of Project Kickoff:
Kickoff meeting
Project team standards meeting
Activities of Technical Requirements Planning:
Identify technical requirements
Procure hardware.
Activities of Quality Check:
Perform quality check and obtain approval.
5.3.4 Phase 2 - Business Blueprint
The purpose of this phase is to create the Business Blueprint, which is a detailed
documentation of the results gathered during requirements workshops. Furthermore,
the Business Blueprint documents the business process requirements of the company.
On this basis, you achieve a common understanding of how the company intends to
run its business within the SAP system.
During this phase, you also:
Refine the original project goals and objectives
Define the Baseline scope
45
Refine the overall project schedule and implementation sequence
Phase 2 consists of the following Work Packages: Project Management ,
Organizational Change Management, Training, Develop System Environment,
Business Organization Structure, Business Process Definition.
Activities of Organizational Change Management:
Create Business Impact Map
Develop Sponsorship Strategy
Establish Change Communications Framework
Activities of Training:
Conduct Project Team Training
Analyze End User Training and Documentation Strategy
Prototype End User Training and Documentation Deliverables
Activities of Develop System Environment:
Create Technical Design
Set Up Develop Environment
Service
System Administration
Initialize IMG
Activities of Business Organization Structure:
Define Business Organization Structure
Q&Adb Structure
Scoping
Set Owners
Set Bookmarks
Business Strategy
Activities of Business Process Definition:
Business Process Definition
Prepare Business Process Workshops
46
Conduct General Requirements Workshops
General Settings and Master Data
Requirement Workshops - Analysis, Modeling, Dominant Entry, BP Transactions
Complete Business Blueprint
Business Blueprint Review and Sign Off
5.3.5 Phase 3 - Realization
The purpose of this phase is to implement business and process requirements based
on the Business Blueprint. The objectives are final implementation in the system, an
overall test, and the release of the system for productive (live) operation. The project
team receives relevant knowledge.
Phase 3 consists of the following Work Packages: Project Management ,
Organizational Change Management, Training, Baseline, Final Configuration, Forms,
Archiving and ABAP, Integration, System Management.
Activities of Organizational Change Management:
Develop Project Team Risk Management
Develop Organizational Risk Management Process
Activities of Training:
Conduct Project Team Training
Define End User Training and Documentation Content
Develop End User Training and Documentation Content
Finalize End User Training and Documentation
Activities of Baseline, Final Configuration:
Baseline Configuration
Final Configuration and Confirmation
Testing
Activities of Forms, Archiving and ABAP:
Batch input /Direct input
47
Accelerated Data Exchange
Establish Authorization Concept
Archiving
Activities of Integration:
Prepare for Final Integration Test
Conduct Final Integration Test
Activities of System Management:
Define Service Level Commitment
Set up Quality Assurance Environment
Set up Productive Environment
5.3.6 Phase 4 - Final Preparation
The purpose of this phase is to complete the final preparation, including testing, user
training, system management and cut over activities, to finalize your readiness to go
live. This final preparation phase also serves to resolve all crucial open issues. On
successful completion of this phase, you are ready to run your business in your
productive R/3 system.
This phase includes the following Work Packages:
Project Management Final Preparation Phase
User Training
System Management
Detailed Project Planning
Cut Over
Quality Check Final Preparation Phase.
Phase 4 consists of the following Work Packages: Project Management , Training,
System Management, Detail Project Planning, Cutover, QC.
Activities of Project Management:
Conduct Project Team Status Meetings
48
Conduct Steering Committee Meetings
General Project Management
Activities of Training:
Prepare for End User Training
Conduct End User Training.
Activities of System Management:
Establish Production System Administration
Conduct Systems Tests
Activities of Detail Project Planning:
Refine Cutover
Refine Production Support Plan
Activities of Cutover:
Perform Cutover to Production System
Final Approval for Going Live
Activities of QC:
Perform Quality Check and Obtain Approval.
5.3.7 Phase 5 - Go Live & Support:
The purpose of this phase is to move from a pre-production environment to a live
production operation. A support organization for end users must be set up, not just for
the first critical days of your production operations, but also to provide long-term
support.
This phase is also used to monitor system transactions and to optimize overall
system performance. Finally, the completed project is closed.
Phase 5 consists of the following Work Packages: Production Support, Project End.
5.4 Project Quality Assurance
49
A Quality Assurance (QA) program will be introduced to the project to ensure that the
solutions delivered to WP is of high quality. The objectives of this QA program are:
Minimise project risk - by focusing on the process used to manage the
project and advocating adherence to a high standard quality approach, risk can be
significantly reduced
Facilitate knowledge sharing and continuous improvement - through sharing
of identified process improvements and techniques being used on other projects
Encourage consistent application of approach - with a structured review of
project standards
5.4.1 Review Approach
QA reviews will be carried out by an SAP partner and one or two members of the
Regional SAP Management team. The review will be based on a standard set of
questions which focuses on six key areas:
Business Process & SAP Functional Design
Project Management & Control
Scope Control & Risk Management
Change Management Approach
Technical Solution
Financial Management & Contractual Obligations
The QA reviewers will interview VL and Client project staff, and examine project
deliverables in order to answer each of the review questions. The completed review
questions will then be used to develop findings and recommendations.
The draft report is to be completed during the review and discussed with the Project
Management Team (Project Partner, Project Director where applicable and Project
Manager) at the review closeout meeting.
50
The Project Management Team will be given ONE WEEK to respond to the findings
and recommendations in the draft review report. These responses will then be
included in the final review report. The timely finalization of the report is critical and
it is expected that the final report should be issued within two weeks of the review
being completed.
The final report will be forwarded to the Project Management Team and Project QA
Partner. Feedback from the review to WP will be from the Project Partner and Project
QA Partner.
5.4.2 Review Timing
Every VL SAP Implementation project is required to have at least one QA review
during its lifetime. Additional reviews such as ISO9001 Quality Audits and quality
reviews conducted by SAP, could be scheduled separately as required with agreement
from WP.
The timing of the SAP review is important to ensure maximum benefit is gained from
the review. The initial SAP QA review will be conducted during the Design phase at
a point approximately a third of the way through this phase. This timing allows for a
reasonable amount of design work to be completed but allows sufficient time for
recommendations to be incorporated into the project.
As WP project involves multiple phases, additional reviews would be scheduled as
appropriate. Where possible, a review at the conclusion of the project would be
considered. The focus of these reviews will be to identify lessons learnt and provide
feedback to the Project Management Team on areas that could potentially have been
improved.
5.5 Mobilization of WP user personnel by phases
It is envisage that the bulk of the work will be done in WP's headquarter in Taiwan.
However during the various milestones in the Project lifecycle, we have planned for
communication and verification of project design with the general end user
51
population.
Project Preparation Phase
In order to ensure the success of the Project, we recommend that WP appoint a team
of WP personnel from the countries covered in this implementation to be fulltime on
the Project. These personnel will reside in Taiwan during this Phase to receive
training in SAP functionality and VL Methodology
Business Blueprint Phase
At the end of Business Blueprint Phase, the WP core team users and VL consultants
take the design and prototype of this implementation to the respective Phase 1
countries for review and verification by the general end user population. This move
will encourage end users buy-in and allow the team to make changes before the start
of SAP Scenario Testing.
During Realization Phase, we recommend a 'Train the Trainer concept' where we
will identify and train a few key end users in the prototype WP system and have these
user trainers travel back to their respective home countries to train the general end
user population in the use of the system.
6 Project Plan
Below project plan is based on ASAP methodology which was described in detail in
Chapter 5.
Module/Phase MM/PP/FI Phase I MM/PP/FI Phase II
Work Breakdown Structure - Stage, Phase,
Task
DurationStarting
Date
Finished
Date
Starting
Date
Finished
Date
Project Preparation 23 days4-Jun-01 5-Jul-01 24-Dec-0124-Jan-02
* Kick-Off 1 day 4-Jun-01 4-Jun-01 24-Dec-0124-Dec-01
Initial Project Planning 12 days4-Jun-01 19-Jun-01 24-Dec-019-Jan-02
52
* Test Environment Setup OK 9 days23-May-014-Jun-01 12-Dec-0124-Dec-01
Project Procedures 3 days20-Jun-0122-Jun-01 10-Jan-0214-Jan-02
Creating Training Plans 3 days26-Jun-0128-Jun-01 15-Jan-0217-Jan-02
Technical Requirement Planning 4 days29-Jun-014-Jul-01 18-Jan-0223-Jan-02
Quality Management 1 day 5-Jul-01 5-Jul-01 24-Jan-0224-Jan-02
Business Blueprint 33 days6-Jul-01 21-Aug-01 25-Jan-0219-Mar-02
Project Management Business Blueprint
Phase
16 days6-Jul-01 27-Jul-01 25-Jan-0219-Mar-02
Organizational Change Management
Blueprint
9 days6-Jul-01 18-Jul-01 25-Jan-026-Feb-02
Technical Design Planning 5 days6-Jul-01 12-Jul-01 25-Jan-0231-Jan-02
Design Training Plans 8 days19-Jul-0130-Jul-01 7-Feb-02 25-Feb-02
Organizational Structure Definition 4 days31-Jul-013-Aug-01 26-Feb-021-Mar-02
Business Process Definition 8 days6-Aug-0115-Aug-01 4-Mar-0213-Mar-02
Initiate User Roles and Authorization
Project
3 days16-Aug-0120-Aug-01 14-Mar-0218-Mar-02
Quality Management 1 day 21-Aug-0121-Aug-01 19-Mar-0219-Mar-02
Realization 58 days22-Aug-0113-Nov-01 20-Mar-027-Jun-02
Project Management Realization 35 days22-Aug-0111-Oct-01 20-Mar-0210-May-
02
Organizational Change Management
Realization
33 days22-Aug-018-Oct-01 20-Mar-028-May-02
Create Training Materials 58 days22-Aug-0113-Nov-01 20-Mar-027-Jun-02
Workflow Development 10 days22-Aug-014-Sep-01 20-Mar-022-Apr-02
Baseline Configuration and Confirmation10 days5-Sep-01 18-Sep-01 3-Apr-02 15-Apr-02
Develop System Test Plans 2 days19-Sep-0120-Sep-01 16-Apr-0217-Apr-02
Establish Quality Assurance Environment7 days22-Aug-0130-Aug-01 20-Mar-0228-Mar-02
Final Configuration and Confirmation 10 days19-Sep-013-Oct-01 16-Apr-0229-Apr-02
53
Prepare and Coordinate ABAP
Development
18 days19-Sep-0116-Oct-01 16-Apr-029-May-02
Develop Conversion Programs 18 days19-Sep-0116-Oct-01 16-Apr-029-May-02
Develop Application Interface Programs 21 days19-Sep-0119-Oct-01 16-Apr-0214-May-
02
Develop Enhancements 24 days19-Sep-0124-Oct-01 16-Apr-0217-May-
02
Create Reports 18 days19-Sep-0116-Oct-01 16-Apr-029-May-02
Create Forms 18 days26-Sep-0123-Oct-01 23-Apr-0216-May-
02
* Production System Setup OK 8 days23-Oct-011-Nov-01 16-May-0227-May-
02
Create User Roles and Authorization
Concept
21 days3-Oct-01 1-Nov-01 30-Apr-0228-May-
02
Establish Data Archiving 21 days3-Oct-01 1-Nov-01 30-Apr-0228-May-
02
Final Integration Test 7 days2-Nov-0112-Nov-01 29-May-026-Jun-02
Quality Management 1 day 13-Nov-0113-Nov-01 7-Jun-02 7-Jun-02
Final Preparation 28 days14-Nov-0121-Dec-01 22-May-0228-Jun-02
Project Management Final Preparation
Phase
28 days14-Nov-0121-Dec-01 22-May-0228-Jun-02
Deliver End User Training 15 days14-Nov-014-Dec-01 22-May-0228-Jun-02
System Management 8 days16-Nov-0127-Nov-01 24-May-024-Jun-02
Conduct System Tests 20 days14-Nov-0111-Dec-01 22-May-0218-Jun-02
Detail Project Planning 25 days21-Nov-0119-Dec-01 28-May-0227-Jun-02
Cutover 11 days3-Dec-0119-Dec-01 13-Jun-0227-Jun-02
Quality Management 1 days20-Dec-0120-Dec-01 28-Jun-0228-Jun-02
Go Live & Support 11 days 21-Dec-017-Jan-02 1-Jul-02 15-Jul-02
Production Support 11 days21-Dec-017-Jan-02 1-Jul-02 15-Jul-02
Ongoing KPI Management 11 days21-Dec-017-Jan-02 1-Jul-02 15-Jul-02
54
Project End 2 days4-Jan-02 7-Jan-02 12-Jul-0215-Jul-02
Module/Phase CO/SD Phase I CO/SD Phase II
Work Breakdown Structure - Stage, Phase,
Task
DurationStarting
Date
Finished
Date
Starting
Date
Finished
Date
Project Preparation 25 days3-Sep-01 8-Oct-01 22-Apr-0215-May-
02
* Kick-Off 1 day 3-Sep-01 3-Sep-01 22-Apr-0222-Apr-22
Initial Project Planning 13 days3-Sep-01 19-Sep-01 22-Apr-028-May-02
Project Procedures 4 days20-Sep-0125-Sep-01 9-May-0214-May-
02
Creating Training Plans 3 days26-Sep-0128-Sep-01 6-May-028-May-02
Technical Requirement Planning 4 days2-Oct-01 5-Oct-01 9-May-0214-May-
02
Quality Management 1 day 8-Oct-01 8-Oct-01 15-May-0215-May-
02
Business Blueprint 37 days9-Oct-01 29-Nov-01 16-May-0226-Jun-02
Project Management Business Blueprint
Phase
17 days9-Oct-01 1-Nov-01 16-May-027-Jun-02
Organizational Change Management
Blueprint
10 days9-Oct-01 23-Oct-01 16-May-0229-May-
02
Technical Design Planning 6 days9-Oct-01 17-Oct-01 16-May-0223-May-
02
Design Training Plans 10 days18-Oct-0131-Oct-01 20-May-0231-May-
02
Organizational Structure Definition 6 days1-Nov-018-Nov-01 29-May-025-Jun-02
Business Process Definition 9 days9-Nov-0121-Nov-01 6-Jun-02 18-Jun-02
Initiate User Roles and Authorization
Project
5 days22-Aug-0128-Nov-01 19-Jun-0225-Jun-02
Quality Management 1 day 29-Nov-0129-Nov-01 26-Jun-0226-Jun-02
55
Realization 65 days30-Nov-0111-Mar-02 27-Jun-02
Project Management Realization 35 days30-Nov-0118-Jan-02 27-Jun-0211-Oct-02
Organizational Change Management
Realization
33 days30-Nov-0116-Jan-02 27-Jun-028-Oct-02
Create Training Materials 30-Nov-0111-Mar-02 27-Jun-0230-Aug-02
Workflow Development 10 days30-Nov-0113-Dec-01 27-Jun-029-Jul-02
Baseline Configuration and Confirmation12 days14-Dec-0131-Dec-01 25-Jul-02
Develop System Test Plans 4 days30-Nov-015-Dec-01 27-Jun-022-Jul-02
Final Configuration and Confirmation 15 days2-Jan-02 22-Jan-02 19-Jul-028-Aug-02
30-Aug-02
65 days
10-Jul-02
Prepare and Coordinate ABAP
Development
18 days2-Jan-02 25-Jan-02 19-Jul-0213-Aug-02
Develop Conversion Programs 18 days2-Jan-02 25-Jan-02 19-Jul-0213-Aug-02
Develop Application Interface Programs 21 days2-Jan-02 30-Jan-02 19-Jul-0216-Aug-02
Develop Enhancements 24 days2-Jan-02 4-Feb-02 19-Jul-0221-Aug-02
Create Reports 18 days2-Jan-02 19-Jul-0213-Aug-02
Create Forms 18 days2-Jan-02 25-Jan-02 19-Jul-0213-Aug-02
Create User Roles and Authorization
Concept
21 days24-Jan-0228-Feb-02 22-Jul-0219-Aug-02
Establish Data Archiving 21 days25-Jan-0228-Feb-02 23-Jul-0220-Aug-02
Final Integration Test 7 days1-Mar-0210-Mar-02 21-Aug-0229-Aug-02
Quality Management 1 days11-Mar-0211-Mar-02 30-Aug-0230-Aug-02
Final Preparation 29 days12-Mar-0219-Apr-02 2-Sep-02 30-Sep-02
Project Management Final Preparation
Phase
29 days12-Mar-0219-Apr-02 2-Sep-02 30-Sep-02
Deliver End User Training 16 days12-Mar-022-Apr-02 2-Sep-02 19-Sep-02
System Management 8 days14-Mar-0225-Mar-02 4-Sep-02 13-Sep-02
Conduct System Tests 20 days12-Mar-028-Apr-02 2-Sep-02 27-Sep-02
Detail Project Planning 25 days19-Mar-0215-Apr-02 2-Sep-02 30-Sep-02
25-Jan-02
56
Cutover 11 days4-Apr-02 18-Apr-02 13-Sep-0227-Sep-02
Quality Management 1 days19-Apr-0219-Apr-02 30-Sep-0230-Sep-02
Go Live & Support 12 days 21-Apr-026-May-02 1-Oct-02 16-Oct-02
Production Support 11 days21-Apr-026-May-02 1-Oct-02 16-Oct-02
Ongoing KPI Management 11 days21-Apr-026-May-02 1-Oct-02 16-Oct-02
Project End 2 days3-May-026-May-02 15-Oct0216-Oct-02
VL propose to implement SAP in WP over a period of 16 months that includes 3
months warranty as requested by WP. After system go live, the full team will remain
at WP for 2 weeks to ensure that the first month end is successfully concluded.
Project man day estimation:
PP/MM/FI Phase I
Project manager (50%) x 1, Integration manager (50%) x 1 , Basis (50%) , FI, MM,
PP, one application consultant for each module
Total 142 days x 4.5 men = 639 man days
PP/MM/FI Phase II
Project manager (50%) x 1, Integration manager (50%) x 1 , Basis (50%) , FI, MM,
PP, one application consultant for each module
Total 128 days x 4.5 men = 576 man days
CO/SD Phase I
Project manager (50%) x 1, Integration manager (50%) x 1 , Basis (50%) , CO,SD,
one application consultant for each module
57
Total 156 days x 3.5 men = 546 man days
CO/SD Phase II
Project manager (50%) x 1, Integration manager (50%) x 1 , Basis (50%) , CO,SD,
one application consultant for each module
Total 116 days x 3.5 men = 406 man days
Total Man days = 2,167
7 Project Team Structure
Logi
Steering Quailty
- 1 Internal
-1 WP
Project
- 1 WP
Integration M
- 1
stics Team
- 1
-
Financial Team
- 1
-
Basis Team
Change
Leade
Programming Team
Integration
FI
- 2
-
CO
- 2
-
Basis
- 1
- 1
Change
-1
-
Programming
- 2
- 1
MM/Q
- 4
-
SD
- 2
-
PP
- 2
-
Project
-1
-1
Project
58
Note:
Note:
WP : represents Core Users working full time on the project
The above project team structure does not include the number of Super Users
whom may be required at times to attend the workshops, as and when there is a need
for in-depth explanation of business operations
Super Users will be trained to be the trainer for eventual delivery of end user
training
The above structure does not include WP 's process owners. Their input would be
called for when there is an issue or decision to be made.
Detail roles and responsibilities of each project team member is available in chapter
11.1
59
8 Work Break down Structure
S/No. Work Breakdown
Structure
Deliverable VL Responsibilities WP Responsibilities Work Product
Project Preparation
Initial
Proje
ct
Plann
ing
Create and Issue
Project Charter
Project charter documents
and agreed upon project
charter checkpoint. Project
charter includes business
profile, project approach,
project scope, implementation
strategy and sequence,
application and technical
architecture, project
methodology, project
organization, project work
plan, project management and
control processes,
communication and change
management strategy, initial
training strategy, testing
objectives and initial strategy
Define project mission
statements
Define business drivers
Identify business
measurements
Identify project
measurements
Assemble project charter
components
Approve project charter
Agree to the approach
taken and accept the joint
responsibilities in the
development of deliverable
Review and agree on the
Work plans. Assist in ensuring
sufficient resources are
available
Project charter
61
S/No. Work Breakdown
Structure
Deliverable VL Responsibilities WP Responsibilities Work Product
Review and refine
implementation
strategy
SAP implementation
strategy
Review implementation
proposal
Confirm implementation
methodology
Check strategy for
corporate rollout
Enterprise process
area scope document -
The implementation
strategy for this
specific project, in
conjunction with the
overall corporate
strategy for rolling out
SAP product.
Review
implementation
proposal
SAP implementation
proposal
Review the implementation
proposal(s), with specific focus
on company business
objectives, overall scope, and
key implementation
assumptions.
Define expectations.
Review and accept formats and
standards. Acquire and provide
supporting tools as defined to
support delivery of identified
deliverable
Assist in assessment.
Review and agree on scope of
work
Create and validate
business case, develop
performance metrics and
Refined SAP
implementation
proposal
62
S/No. Work Breakdown
Structure
Deliverable VL Responsibilities WP Responsibilities Work Product
tracking mechanisms to ensure
realization of benefits
Establish project
team working
environment
Project team room Plan environment
Set up environment
Help to coordinate and
create a common working area
for the project team.
Participate in planning the
details and logistics for setting
up a project team room.
Considerations to address
include: Physical location and
size of the room, workstations,
printers, network equipment,
phones, voice mail, fax
machine whiteboards, flip
charts, other supplies, phone
line accessibility for remote
dial-up, network connections,
security access cards.
The physical work
space for the project
team is established for
the project duration
Determine project
organization
Approved project
organization
Customer Competence
Center (CCC)
Refine organization and
roles
Assign people to roles
Assign and create change
Review team requirements
and nominate Real Case
personnel to form project team
(especially Project Manager
and team leaders)
A graphical
presentation of the
project organization,
including steering
committee, project
management, core
63
S/No. Work Breakdown
Structure
Deliverable VL Responsibilities WP Responsibilities Work Product
team
Conduct project team
transition meeting
Review and agreed on the
roles and responsibilities for
each team member proposed.
project team and
extended team.
Responsibilities are
defined for each
organizational
component of the
team.
CCC - a
Customer's own, R/3
focused, internal
support linked to SAP
Support Services.
Prepare project plan Project Plan Create project work plan
Create project budget plan
Create project resource
plan
Provide company goals and
objectives, project scope,
desired implementation time
frame, resource assignments
(internal and external), budget
information .
Review and agree on the
project work plan, budget plan
and resource plan.
Review and refine
Project Plan
Checklist
Project Staffing
User Guide
Project Plan
Project Work Plan
Report Template
MS-Project: 6~9
64
S/No. Work Breakdown
Structure
Deliverable VL Responsibilities WP Responsibilities Work Product
activities and tasks listed in the
project plans.
months templates
Budget plan
template
Resource planning
template
Create project team
training plan
Project team training plan
Completed SAP class
registration
Develop training plan for
basic R/3 functions, advanced
courses, how configuration
works and how to maximize
$/3's impact to meet
customer's business
requirements.
Review training costs.
Provide information of
background of each team
member, specific area of
business involvement
(application or technical),
timing of their participation
during the implementation
Training plan
schedule, and initial
class registration for
all participants
Proje
ct
Proce
dure
Define project
management
standards and
procedures
Project management
standards and procedures
Establish the basic
standards and procedures for
the project
Define steering committee
meeting schedule; how change
management is handled;
project monitoring and status
Review and agree on the
project management standards
& procedures
Clearly defined
and documented
management
standards. They are
input for the activity
project team standards
meeting.
65
S/No. Work Breakdown
Structure
Deliverable VL Responsibilities WP Responsibilities Work Product
reporting; meeting schedules
for the core team and extended
project team; overall project
communication methods and
processes; and project
documentation.
Identify Project
Communication plan
Define project
documentation
Create issue management
plan
Create scope management
plan
Define strategy for using
R/3 Services
Define
Implementation
standards and
procedures
Implementation
standards and procedures
Define system
configuration standards
Define user training and
documentation
All team members should
have input in this process, and
understand the basic
procedures, once they have
beendefined.
Configuration
standards
End user training and
documentation
66
S/No. Work Breakdown
Structure
Deliverable VL Responsibilities WP Responsibilities Work Product
documentation
Define testing strategies
Define post implementation
service and support
Define system
authorization standards for
project team
Determine system
problems and error handling
Define system
enhancement and
modifications
been defined.
Review and agree on
implementation standards and
procedures.
strategy
Testing strategy
Post-
implementation
support strategy
System authorization
standards for the
project team
System problems and
error handling
procedures
System
enhancement and
modification approval
process.
Define system
landscape strategy
The R/3 System
Landscape - System and
Client
Determine required
systems
Determine client
deployment strategy
Review and execute
activities related to system
landscape strategy
Design the technical
infrastructure, covering
Definition of
landscape involves
stating the purpose of
each SAP System,
providing each system
with a system
67
S/No. Work Breakdown
Structure
Deliverable VL Responsibilities WP Responsibilities Work Product
Define release strategy
Define transport system
strategy
The required number of
systems and clients needed,
Specific client roles and the
appropriate client settings,
Acceptable levels of quality
assurance and testing,
infrastructure and hardware identifier, and
establishing a
transport route
between the systems
for the distribution of
Customizing and
development efforts.
Clients are then
distributed in this
landscape. Once the
system landscape has
been defined, an
implementation
strategy is created for
both the set up and
maintenance of the
systems and clients
within this landscape.
Traini
ng
Proje
ct
Plann
ing
Phase
Create Project Team
Training Plan
Create a training plan for
the project team involved in
the SAP implementation.
Create a project team
training plan including
business processes, SAP
system functionality, and
organizational change
management. During the
Training Project Planning
Phase, initial project planning
Decide which courses are
to be conducted at a SAP
training center, or at the
company's site. The project
team training plan is regularly
updated throughout the life of
the implementation.
Training Program
Evaluations
End User
Documentation and
Training Changes
68
S/No. Work Breakdown
Structure
Deliverable VL Responsibilities WP Responsibilities Work Product
for end user training and
documentation takes place.
This includes aligning and
analyzing the training and
documentation strategy with
the overall implementation
strategy and Project Plan
Align End User
Training & Doc
Strategy
End User Training & Doc
Strategy



Draft versions of
the following: End
User Training and
Documentation Needs
Assessment,
Preliminary End User
Training and
Documentation
Project Plan,
Preliminary End User
Training and
Documentation Plan,
Alignment meeting
agreement signed by
all parties involved.

69
Proje
ct
Kicko
ff
Kickoff meeting Kickoff meeting report;
copies of presentation
documentation; project
charter; project team;
organizational chart; project
logistics and standards;
project work plan;
communication directory and
standards.
Conduct Kickoff meeting Consultants, steering
committee, senior
management, project managers
from the company and SAP,
and any other implementation
partners must be involved.
Formally
announce to the
company the initiation
of the R/3 project,
which includes the
overall goals, detailed
task plans, and
processes.
Official start of the
project; presentation
of the input mentioned
above; explanation for
any issues or
questions about the
project from the
kickoff meeting
participants.
Project Team
Standards Meeting
Approved project standards Prepare and conduct an
information meeting with all
team members to discuss
project standards and
procedures .
Project communication
plans, meetings, and schedules
Project documentation
Attend information meeting
and provide input.
A list of project
standards that all team
members are aware of,
and understand. This
is essential for a
smooth running
project.
70
including: deliverables
Testing strategies
Scope and issue
management
Configuration
documentation
Planning and monitoring
strategy
Techn
ical
requir
ement
planni
ng
Identify technical
requirements
Completed Technical
Questionnaires
Technical Infrastructure
needs
Identify the technical
requirements needed to
implement the R/3 System, and
clarify the customer's
expectations. Hardware sizing
must also be reviewed and then
procured.
Complete Technical
Questionnaires (using SAP
QuickSizing)
Define Technical
Infrastructure Needs
Review and agree on the
technical requirements, define
expectations.

Procure hardware. Complete hardware facilities Size initial hardware Signed contract and choose
a hardware and database
Ready to use
hardware, PC,
71
Review system sizing
results
Approve sizing results
Order initial hardware
Order remote network
connection
platform to support R/3.
Place the hardware order
with the appropriate vendor,
and to determine the estimated
lead time for the production
system hardware order.
Install and configure
hardware, SAP, desktop,
printers, other software to
support the SAP R/3
development environment
printers.
Qualit
y
Chec
k
Perform quality
check and obtain
approval
Complete and formal signoff
of Phase 1
Approval to proceed to
Phase 2
Conduct quality check
Collect and review the
status of all deliverables from
this phase to ensure that all
activities, tasks, and
deliverables are complete. This
is an internal quality check
carried out by the project
manager and should not be
confused with determine
quality assurance standards,
which addresses external,
independent quality checks
Signoff project preparation
phase
Provide final
verification of all prior
project planning and
deliverables from this
phase. It is critical that
regular quality checks
be performed
throughout the phase,
as tasks are
completed. All issues
regarding scope,
project environment,
and initial technical
setup must be
addressed.
72
Business Blueprint
Organ
izatio
nal
Chan
ge
Mana
geme
nt
Business process model
decomposition, including
business rules/policies and
procedures
Create Business Impact
Map
Develop Sponsorship
Strategy
Establish Change
Communications Framework
Develop the organizational
change plan to prepare all
members of the organization
for the new system
Assist in designing and
executing the change plan
Organizational
impacts, "To-Be"
organizational model,
and plan to achieve
required changes
Traini
ng
Conduct Project
team training
Analyze End
User Training and
Documentation
Strategy
Prototype End
User Conduct
project Team and
change Team
training for team
members to obtain
Project tam training template
Curriculum Planner
Conduct project Team and
change Team training for team
members to obtain SAP
functional and technical
knowledge. This training
enables the project team to
start to match the system
requirements with SAP
functions during the Business
Blueprint phase. For the
change team this training
allows for a basic
understanding of functional
andtechnicalissuestoenhance
Training environment set
up and considerations
Define the training
program in accordance with the
training strategy, training
curriculum and development
standards by establishing
course objective, course
description, course topics, and
delivery method

73
SAP functional and
technical knowledge.
This training enables
the project team to
start to match the
system requirements
with SAP functions
during the Business
Blueprint phase. For
the change team this
training allows for a
basic understanding
of functional and
technical issues to
enhance their
credibility as they
support the SAP
implementation.
Analyze the end
user training and
documentation
strategy and finalize
the plan for
developing the
training content and
documentation, and
training delivery.
The tasks involved
with this activity will
and technical issues to enhance
their credibility as they support
the SAP implementation.
Analyze the end user
training and documentation
strategy and finalize the plan
for developing the training
content and documentation,
and training delivery. The tasks
involved with this activity will
occur at times simultaneously
with the tasks of Prototype End
User Training and
Documentation Deliverables.
The following process flow
illustrates the tasks involved in
this activity and the actions to
follow.
Design and develop a
training and documentation
prototype, and analyze and
determine the system
requirements necessary for
conducting training. The tasks
involved with this activity will
occur at times simultaneously
with the tasks of Analyze End
User Training and
74
occur at times
simultaneously with
the tasks of
Prototype End User
Training and
Documentation
Deliverables. The
following process
flow illustrates the
tasks involved in this
activity and the
actions to follow.
Design and
develop a training
and documentation
prototype, and
analyze and
determine the system
requirements
necessary for
conducting training.
The tasks involved
with this activity will
occur at times
simultaneously with
the tasks of Analyze
End User Training
and Documentation
Documentation Strategy.
75
Deliverables
Devel
op
Syste
m
Envir
onme
nt
Create Technical
Design
To install and configure
the development system.
Within this work package, you
must setup the development
system environment, define
system administration
procedures, and initialize the
IMG in preparation for the start
of implementation.
Document physical
system(s) Layout &
Distribution
Define and document
printing infrastructure
Document Network
Topology
Document Interface
Topology
Define Desktop
Management Strategy
Approve technical design
Seek support from your
hardware partner
The steering committee
has to give approval for the
technical design of the system
landscape meeting the needs of
this R/3 implementation.
Check the communication
diagrams for each of your
company's business areas that
were created in the project
preparation phase. These
describe the future applications
architecture. Check them
against the processes and
functions you have determined.
Use this documented
applications architecture for a
detailed analysis of your
hardware, operating system,
database, and network
requirements. In particular,
check where organization units
will be working, with which
applications systems, and what
requirements result (lines to be
SAP Technical
Operations Manual
IT Infrastructure
Document
76
laid, for example). Also, check
for particular processes used at
particular places that call for
special requirements (for
different screen sizes, PC
configurations, and so on).
Set Up
Development
Environment
Install initial Hardware
Verify initial system
technical environment
Install Development
System (SAP software and DB
installation)
Install desktop
components for Project Team
Members
Set up user master records
for project team
Secure development
system
Install and configure
printing services for project
team
Configure remote network

77
connection
Set up remote connection
to SAP
System
Administration
Conduct Basis and system
administration workshop
Define system
administration for development
system
Configure CCMS
(Computer Center
Management System)
Define backup strategy
Verify system
administration functions
Define periodic system
maintenance procedures

Initialize IMG Enterprise IMG
Project IMG
Generate Enterprise
Create project IMG

Busin
ess
Org.
Define Business
Organization
Structure
Documented
organization structure for the
company
Define the enterprise
organizational structure using
SAP organizational units, such
Discuss the topics with
consultants, including: What
enterprise process areas and
Organization
structure presentation
78
Struct
ure
Structure company
Issues database
as company codes and sales
organizations.
Schedule organizational
structure workshop
Distribute organization
structure guidelines
Conduct organization
structure workshop
Set owners, Set
bookmarks in Q&Adb
business processes will be used
in the system; What
organizational units within the
company will be affected by
the implementation
Recommend and approve
organization structure
Documented
organization structure
for the company
Busin
ess
Proce
ss
Defin
ition
Defined Business
Process
Define the business
processes using Q&Adb as a
tool.
Use the CI (Customer
Input) template and the
business process questions
within the Q&Adb to support
the preparation and completion
of the business process
definition.
Access external tools for
modeling the business
processes via the Q&Adb for
Review and agree on the
business processes

79
detailed analysis.
Generate the Business
Blueprint.
Generate Business
Process Master List.
Prepare for
Business Process
Workshop
Prepared project team Schedule Business
Process Workshop
Conduct Business Process
Guideline Workshop
To ensure efficient
business process workshops
means determining who
attends, which business
processes are discussed, and
other applicable topics. To
ensure effective meetings, you
should send all relevant
materials and business process
guidelines to the participants
prior to the workshops.
Assist in Business Process
Workshop preparation.

Conduct
General
Requirements
Workshops
Completed general
settings and master data
questions in the Q&Adb
Determine general
settings
Determine enterprise
standards
Analyze your
standardization aims (general
settings) and the constraints to
which they are subject. This
actiitdealsithdetermining

80
Documented enterprise
standards
standards activity deals with determining
whether standardization is, or
ought to be, one of your
objectives.
General settings
and master data
Completed general
settings and master data
questions in the Q&Adb and
documented enterprise
standards

Conduct
Business Process
Workshops
Determine Business
process requirements
Determine the need for
extended functions
Determine reporting
requirements
Determine required
interfaces
Determine conversion
Requirements
Determine required
enhancements
Clarify deficiency Areas
Attend Business Process
Workshops and provide input

81
Refine Business process
description and models
Determine needs for
additional detailed workshops
Schedule detailed
requirements workshops
Conduct
detailed
requirements
workshops
Completed Q&Adb
components.
Determine detailed
requirements
Refine Business process
description and models
use the questions in the
Q&Adb to determine business
requirements, and to complete
a Customer Input form for each
Business Process.

Complete
Business Blueprint
Completed Business
Blueprint
Perform organizational
Optimization Analysis
Refine project
organization and roles
Assemble blueprint
Identify baseline scope

82
Verify blueprint
completeness
Blueprint
document review
and signoff
Prepare for presentation of
blueprint review
Conduct review and
signoff

Review and signoff
Business Blueprint
Business
blueprint quality
checklist
Project signoff
Executive
summary of business
print PowerPoint
presentation
Realization
Organ
izatio
nal
Chan
ge
Mana
geme
nt
Develop project team risk
management process
Develop organizational
risk management process

Traini
ng
Conduct project team
training
Define End user training
and documentation content
Ensure attendance and
prepare for training facilities
Training
environment setup and
considerations
Knowledge
83
and documentation content
Develop End user training
and documentation content
Finalize End user training
and documentation
warehouse sample
checklist
Sample
documentation
standards
Project team
training template
Baseli
ne
confi
gurati
on
and
confir
matio
n
Initial IMG The Baseline block
comprises the priority
requirements of the enterprise,
ensuring that they can be
implemented quickly.

Final
Confi
gurati
on
and
Confi
rmati
on
Finalized IMG The Final configuration is
an iterative process in which
you set up your business
requirements. You confirm that
all your business requirements
are met in the R/3 System.
Develop plans for final
scope configuration

84
Conduct configuration
workshop
Configure and validate
final scope
Prepare final confirmation
Perform final
confirmation
Testin
gs in
realiz
ation
phase
System test User acceptance test
scenarios signed off by key
business stakeholders
Plan final integration test
Define integration test
scope
Create test cases
Create final integration
test plan
Test groups and
responsibilities
Determine final
integration test
Prepare test room and
infrastructure
Verify migration of all
Assemble test team and
sign-off overall system test
approach
Develop system and stress
test plans.
Execute system test to test
the functionality of the
developed system according to
the designed integration test
plan
Log the results
Log the open issues in the
issues database
Review final integration
test
Test plans, test
data and expected
results
85
objects to QA
Freeze system
Finalize system
Resolve open issues
Check and sigh off
test
Form
s,
Archi
ving,
ABA
P
Address and define
different types of reporting
capabilities
Interfaces, Conversions,
Enhancements
Refresh the production
environment to prepare the
system for conversion and cut-
over procedures
Team members are
assembled to discuss and make
decisions about each of these
programs should be comprised
of people with technical and
functional expertise on both the
current legacy system and the
SAP R/3 application modules.

Establ
ish
autho
rizati
on
conce
Compete Production
Security Set Up
Complete system user
ID's and assign the developed
security profiles (or activity
group) to those ID's.

86
pt
Archi
ving
Design archiving
management strategy
Create archiving
management
Test Create archiving
procedures
Review archiving

Syste
m
mana
geme
nt
Define service level
commitment
Set up quality assurance
environment
Set up productive
environment
Template for Volume
Test Plan / Stress Test
Plan
Define Periodic
System Maintenance
Procedures
Automating SAP
startup and shutdown
R/3 spool
administration tool set
System Operations
Manual Template.
87
Final preparation
Train
ing
Prepare for End User
Training
Conduct End User
Training.
End user documentation
and training changes
Training program
evaluations
Syste
m
mana
geme
nt
Stabilized production
environment
Establish Production
System Administration
Conduct Systems Tests

Detai
l
proje
ct
plan
ning
Refine Cutover
Refine Production Support
Plan

Cuto
ver
Perform Cutover to
Production System
Final Approval for Going
Live
End user training is
completed
R/3 System
administration is ready
Stress test is
completed
88
Conversions and
business processes in
the production system
have been checked.
Customizing settings
and R/3 Repository
objects have to be
transported into the
production
environment from the
QA environment.
Successful import of
Customizing settings
and R/3 Repository
objects is the
prerequisite for data
transfer. The R/3
System provides tools
for transporting
Customizing settings
and R/3 Repository
objects.
Qual
ity
chec
k
Perform Quality Check
and Obtain Approval.
Review, sign off the
quality check

89
Going Live & Support
Prod
ucti
on
supp
ort
Going Live and Support
review
Provide production
support
Validate Live Business
Process results
Conduct Post Go Live End
User Training
Authorize Completion of
"Go-Live" Checkpoint and
proceed to Support phase
Commence Live
Processing

Proj
ect
end
Resolve open issues and
formally signoff project

90
9 Project Cost
9.1 Project Cost
The total cost for implementing SAP R/3 system for WP's project amounts to 2167
man days.
VL propose that 10% of the above quoted fees be retained and paid to VL when the
project is delivered on schedule and within the scope that has been agreed.
VL further agreed to give the above 10% retention money to WP Electronics as a
rebate off the fees for the second implementation at any WP Group of Companies.
The above gesture is to show VL's confident that the project can be delivered in the
16 months timeframe and to partner with WP to share the risk as well as VL's strong
interest in forging a long term working relationship with the WP Group of
Companies.
Note:
The above project cost does not include 5% of Value Added Tax
WP Electronics must pay VL any reasonable out of pocket expenses not including
office equipment and mobile phone for work that is done by VL consultants outside
Taipei city and county. VL will furnish WP with supporting documents and invoices
showing these expenses.
Any cost associated with work or activities done outside Taipei (eg. oversea
training) will be charged at cost to WP. This may include cost for flights,
accommodation. Supporting documents and receipts will be provided to show proof
If needed, VL is able to provide additional resources for developing of ABAP
programs/reports/forms on a time and material basis. Alternatively, WP could also
engage VL Overseas Remote Development Facility (RDF) for the program
development. VL will be pleased to submit a separate quotation for the piece of work
should the need arises and after discussion with WP Electronics.
91
10 Project CSF & Project Risk
10.1 Project CSF
Management
Commitment from top management to be actively involved in quickly resolving
key project issues and ensuring that major decisions are adhered to
Strong executive and key stakeholder commitment to the project's success
Strong top-level support for a Change Integration component of the project
Clear ownership/accountability for change planning and implementation per site
Clearly articulated business case exists
Project, not stage, level funding
Staffing
Commitment to dedicate the "best and brightest" resources full-time for all tracks
Core team empowered to make major business decisions and support the
technology
Highly experienced project management team with an in-depth knowledge of the
business processes and enabling technologies being implemented
Average 40% consultant/client staffing mix throughout life cycle
Knowledge transfer expectations are adjusted to allow for an accelerated approach
Dedicated end-user training development and delivery resources
Project team retention program used to ensure core team remains together
Support from external team environments (ex. technical or change management
resources)
Dedicated Project Administration resources to work under the direction of the
project management group on project monitoring and updates
Dedicated Change Management resources to be responsible for transition
management
Dedicated resources to co-ordinate the interface design, custom development, data
92
conversion and system testing activities
Approach & Scope
Absolute project empowerment and sponsorship to support quick decision making
Manageable scope using core SAP functionality
Ability to adopt all ASA) approach recommendations for all tasks
Deliverable based management approach to ensure understanding of building
block relationship of deliverables and minimize rework
Utilize effective tools to minimize documentation requirements
Design deliverables for multiple uses
Management commitment to a rigorous scope control process
Proactive change management to implement process, organization, & system
changes
Project facilities are in one central location
Effective data conversion and training strategies established early
Process Improvement
Minimal level of "As-Is" process analysis
No significant BPR required. Constraining reengineering to "little r" i.e.
Reengineer business processes to SAP using its inherent best practices contained in
the Event-Driven Process Chains
"To-be" business process design and SAP configuration executed concurrently via
an iterative prototyping process
Technology
Proven technology platform
Proven software functionality (Not a beta site of SAP functionality)
Customization
93
No modifications to SAP's core software
A management philosophy of challenging and tightly controlling all development
activities including:
Interfaces
Automated Conversions
Enhancements (e.g., user exits, external bolt-ons, etc.)
Custom Reports
EDI
Workflow
No major software upgrades during development (e.g., 4.0 to 5.x)
Level of customization activity reduced to essential minimum ("bells & whistles)
Customization efforts starts earlier and in parallel to prototyping activities
Testing
Scenario testing overlapping with iterative prototyping
Test approach/strategy which allows for reusability of test strings and data
Project Management
.
Strong relationship and communication processes with SAP via both WP and VL
Efficient communication and understanding of scope and responsibility within the
project team
Consistent on-time delivery of committed project deliverables by each responsible
party
Early identification and detailed understanding of the scope and complexity of
interfaces, data conversion and technical enhancements to ensure sufficient time for
development activities
Proactive management of project dependencies and coordination with other WP
projects and potential project impacts
Hands-on management of daily project activities to ensure that project resources
94
are working efficiently on the right tasks and completing them in a timely manner
Proactively planning the project's next tasks to ensure a smooth and efficient
transition of project resources and deliverables from one project activity to the next
Effective and timely issue resolution process
Timely management and decision making regarding project dependencies,
resource conflicts, timeline constraints, etc.
10.2 Project Risk
The WP ERP implementation will have activities occurring at multiple project
sites (e.g Overseas, Taiwan etc.)
Multiple parties (Process Owners, Core Users, Consultants, IT Analysts) are
responsible for the ERP implementation and it would be absolutely critical they
synchronize to the agreed schedule for a timely completion
As ERP project is expected to be implemented in stages, on-going configuration
and program change control between stages is required
WP plans to implement additional software packages that will integrate with ERP
(e.g. MES, APO/I2)
Custom enhancements will have to be developed to provide comparable
functionality to support critical business practices (e.g. Notes Receivable and Payable)
Senior Management direction is required on process requirements in the early
stages of prototyping.Any delays or communication breakdown will directly affect
timely ERP implementation
Potential business impact on WP during the ERP transition
Inadvertent expansion of scope as WP project team members become more
familiar with SAP's capabilities during the project
User pressure on the project team to deviate from re-engineered, standardized
processes and move towards site specific processes resembling current site processes
Potential pull on project resources during the high-volume business months of
November and December relating to year-end closing, increased manufacturing to
meet cyclical sales demand, etc.
Early assessment findings indicate that organizational structure, job, and process
changes will be a result of this ERP implementation
95
11. Appendix
11.1 Roles & Responsibilities
WP VL
Program Sponsor Responsible for the overall
program including realization of
benefits
Provides senior management
authority for the program
Ensure senior management
involvement
Secure dedicated resources
including people, time and money
Demonstrate personal
commitment
Steering
Committee
Authorize start/stop of
individual projects
Allocate project support
resources including money and
manpower
Provide clear strategic guidance
and direction covering policy,
process and procedure
Review and approve plans and
key milestones and ratify
significant project decisions that
may endanger project time, cost
and quality
Decide between alternative
Organization, Process and
People/Skills options based on
Project Team advice
Responsible for successful
implementation in their
division/location
96
WP VL
Program Director Orchestrates successful delivery
of the program
Enables interactive
communication among senior
management and project teams
Co-ordinates effective and
efficient participation
Manage program plan with key
business and project milestones
Monitor and track progress
regarding schedule, budget,
resources and technical
performance, and benefits tracking
Manage project teams
Manage the key risks of the
program
Manage project
interdependencies
Orchestrates successful delivery
of the program
Enables interactive
communication among senior
management and project teams
Co-ordinates effective and
efficient participation
Develops program plan with
key business and project milestones
Provides mechanism for
monitoring and tracking progress
regarding schedule, budget,
resources and technical
performance, and benefits tracking
Creates infrastructure for
managing the project teams
Manage the key risks of the
program
Creates infrastructure for
managi