Essay on Sap Project Request

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Central Media, LLC

12
Warehouse SAP Conversion

To: Business Owner Date: September 19, 2012 Division Directors Department Heads From: Department of IT
Subject: Project Initiation Form

Project Title: SAP Warehouse ERP Conversion Project
Project Description: This project will design a SAP ERP system to manage order fulfillment and warehouse inventory. The existing system is built on FoxPro. Central Media has average order fulfillment speeds. We are ranked fifth best out of ten competitors in delivery speed and sixth in on time delivery. Order pickers spend a large portion of time tracking down inventory that becomes scattered on shelves. Surveys completed by former customers point to high rates of incomplete orders and wrong shipments as the reason why they left Central Media. Customer service reports that 35% of the calls they receive per day are from unhappy customers with bad orders.
Motivation & Benefits: This project will allow for a new bar code system to be used to better track inventory and improve order fulfillment methods. Improved fulfillment methods will get the product to the customer faster and on time. The orders will be accurate and complete. Managers will have reports available to evaluate fulfillment speeds in real time and make changes in the areas that need attention. Warehouse workers will be able to double check accuracy of shipment before it heads out by cross checking PO that prints at each station. The company will be positioned to offer the fastest turnaround time for customer delivery in the industry. Order accuracy should improve to near zero bad orders due to improve quality checks at end of fulfillment process. We will be the first in our industry to adopt SAP. Without these changes the company will continue to lose customers, and will lose out on a significant competitive advantage, especially if the system is adopted by another company.
Organizational Involvement: Complex projects of this nature require the involvement of executive management and senior warehouse heads to identify potential issues and ensure that they are resolved as the project moves forward. This will be achieved by the establishment of a high level Project Board to oversee the running of the project, supported by a Project manager and an active Project Team. The project team will contain consultants who are experienced in five work areas key to this project: Project Management, Quality Assurance, Data Security, Customer Requirements, and Training. Here are the key partners to this project: - Central Media LLC, Cincinnati Consulting, and Contoso SAP Hosting Services. It will be important that appropriate links and communication are maintained with all partners during the life of the project.

Cost & Resource Estimates: Project Costs | | | | | | | | Salaries | | | Technical Staff | | $ 323,000.00 | Functional Staff | | $ 116,000.00 | General Office Expense | | $ 7,000.00 | Consulting | | $ 600,000.00 | Travel + Lodging | | $ 20,000.00 | Hardware | | | Purchase | | $ 156,000.00 | Maintenance | | $ 4,000.00 | Training | | | | Technical | | $ 87,000.00 | University | | $ 22,000.00 |

Timeline: The most significant constraint to this project is the clearly challenging timeline. Here are the key milestones:

| Deliverable | Date | Project Management | Initial Project Scope | Sept 10 2012 | | Project Initiation Document | Sept 19 2012 | | Risk Assessment Model | Sept 27 2012 | | Cost Review Summary | Oct 3 2012 | Customer Requirements | Scenarios Diagram | Oct 3 2012 | | Use Case Diagrams | Nov 21 2012 | | Output Specifications |
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