8/14/2019 MIS677 - 11-8 947a

1/11

Ta Ron BarnesTa Ron Barnes -- John CasielloJohn Casiello -- Ching-Wang Hung -- RonRonZanardoZanardo 1

8/14/2019 MIS677 - 11-8 947a

2/11

Agenda & Introduction

Project OverviewProject Management Methodology

Organizational Structure

Work Breakdown StructureHigh Level Project Plan

Detailed Project Plan (Financial Mgmt)

Summary

Q&A

2

8/14/2019 MIS677 - 11-8 947a

3/11

3

8/14/2019 MIS677 - 11-8 947a

4/11

Destination:Chicago

HUB #1

HUB #2

HUB #3

4

100%

50%

125%

8/14/2019 MIS677 - 11-8 947a

5/11

5

8/14/2019 MIS677 - 11-8 947a

6/11

ERP System for Warehouse Management & Delivery OptimizationInventory and Delivery SystemsFunctional Area:

Project Name:Project Sponsor: COO

TBDProject Manager:

DESCRIPTION

KEY BENEFITS:

Streamlined core value chain processes

Improved Business process

Reduced costs Improved customer service, satisfaction and intimacy

Improved tools for operational and administrative functions

Customer retention

Improved management information and reporting capabilities

RESOURCES: Internal order management, internal IT, and external resources are needed. A full-time project manager is needed to managethe project.

PREREQUISITES / DEPENDENCIES: An effective ERP system must be highly integrated with all of the other supply chain systems; temporarybridges will be required. Extensive training of IT staff and business unit end users will be required. New technology infrastructure must be in

place.

OBJECTIVES / SCOPE: Enterprise-wide

Analysis, design, construction, and implementation of Inventory systems and Warehouse Management using new ERP package software

Define data model: structure, access, and conversion; convert/scrub/import legacy data

Implementation of ERP system and Logistical Consolidation of warehousing and shipping that positions AGL for competit ive

advantage and enhanced its business. Key functionality includes automated order fulf illment, inventory tracking, and delivery schedules. The

phased project will include training, planning, analysis, design, construction and implementation of the new ERP and WMS.

ISSUES: Some new technologies (e.g. RFID) and Oracle Database. Infrastructure lead-times on datacenter consolidation may affect ERP startdates.

Current Condition: Fair(good) (fair) (poor)

Risk: High(high) (medium) (low)

Strategic Value: High(high) (medium) (low)

Business Impact: High(high) (medium) (low)

COST RANGE: $_____(includes software, DB, trainingand systems integration)

DURATION: 30 36 months

8/14/2019 MIS677 - 11-8 947a

7/11

7

Investment Year 1 Year 2 Year 3 Year 4 Year 5

Business Case Development 120,000

PMO Deployment 400,000

ERP System Implementation 6,000,000

Data Center Consolidation 4,200,000

Salaries &Wages 230,000 1,500,000 1,760,000 1,000,000 1,000,000

Tools &Technology 200,000 1,500,000 150,000 2,300,000 2,300,000

Other Expenses 250,000 165,000 190,000 260,000 260,000

Total Investments 11,400,000 3,165,000 2,100,000 3,560,000 3,560,000

Cost Saving

Project Synergy 300,000 660,000 770,000 870,000 870,000

Minimized Project Over-runs 500,000 550,000 670,000 670,000 670,000

Enterprise Standardization 220,000 330,000 500,000 600,000 600,000

Acquisition Integration 670,000 1,000,000 1,133,000 1,000,000 1,000,000

Risk Management - 270,000 300,000 400,000 400,000

Improved Reporting &Decision Capabilities 40,000 70,000 400,000 400,000 400,000

Total Cost Savings 1,730,000 2,880,000 3,773,000 3,940,000 3,940,000

Net Cash Flows (9,670,000) (285,000) 1,673,000 380,000 380,000

Discount Rate 18%

Net Present Value 12,998,300

Internal Rate of Return 114%

Pay Back (in years) 5.5

8/14/2019 MIS677 - 11-8 947a

8/11

8

AGLs IT strategy implementation plan will bring business unit integration and provideopportunities for growth and reduced expenses.

8/14/2019 MIS677 - 11-8 947a

9/11

9

A dedicated team and subsequent organizational structure will help to improvedecision making, enhance communications, and focus the team for success

ExecutiveCommittee

SteeringCommittee

Project Director

Project MgmtOffice

PROJECTMANAGER

Team LeadDATACENTER

Team Member

QA / Testers

Team LeadINVENTORY

Team Members

QA / Testers

Team LeadWAREHOUSE

Team Members

QA / Testers

8/14/2019 MIS677 - 11-8 947a

10/11

10

8/14/2019 MIS677 - 11-8 947a

11/11

11