1. 1 ETM 5121 Project Proposal Determination of How to Handle Contract Craftsmen Employees in the SAP Plant Maintenance Module of ABC, Inc.’s Illinois Refinery ERP System Prepared By: Robert Pennington

2. 2 The Refinery ERP Implementation CEO directive … payback not important 3 phase implementation –Phase 1 Product Supply Chain Go Live – March 1 st –Phase 2 Cutover support for Product Supply Chain MRO Go Live – January 1 st Only critical users –Phase 3 Cutover support for MRO Expansion of MRO users

3. 3 The Problem What is the best way to manage my craftsmen contractors in SAP for the Illinois refinery?

4. 4 The Objectives A cost effective method of “handling” maintenance craftsmen contractors in SAP should be chosen that will … –not hinder the operations of the refinery –provide adequate information capabilities so as to provide the measurement of the refinery’s critical success factors associated with contract employees

5. 5 The Measures The SAP ERP system configuration must be capable of having the chosen solution implemented either within SAP itself or in association with another external system No Increase in the staffing levels of the maintenance, purchasing, and accounting departments No decrease in the reporting capabilities The system must be capable of accepting fixed bid contracts as well as time & material contracts

6. 6 The Deliverables A design document that identifies the deployment of the system functionality An assessment of the newly designed system A plan for system implementation A plan for post implementation services

7. 7 The Alternatives Don’t use contractors Configure the system for internal contractors –Manage through work centers Configure the system for external contractors –Manage through purchase orders Make use of both internal and external contractors Program an interface in SAP that treats a contractor the same when interfacing with the user yet maintains the integrity of the system

8. 8 The Approach Pre-Planning –Identification of requirements / objectives and high level scope –Identification of alternatives –Identification of project organization

9. 9 The Approach Planning –Identification / refinement of project scope –Establish the initial project plan

10. 10 The Approach Execution –Evaluation of alternatives –Selection of alternative –Integrate selected alternative in with refinery work processes Incorporate the chosen alternative with work process documentation Communicate statement of impact –Scope review and project supervision

11. 11 The Approach Evaluation & Future State Planning –Review deliverables with refinery project manager and maintenance manager –Establish future state directives, if any, in conjunction with refinery project manager, maintenance manager, and IT management

12. 12 The Plan

13. 13 The Plan

14. 14 The Use of MSETM Skills Project Management –Strategic Project Management Change Management –Planning and Managing Technology Implementation –Management of Technology and Implementation –Developing Management Skills Work Process Design –Performance Management & Improvement