Design And Development Of Supply Chain Management System

Strategic Management Plan

This report depicts the design and development of Supply Chain Management System in the business organization that helps to provide more interactive opportunities to the suppliers, consumes and distributors as well. The Module of Enterprise Resource Planning system that has been chosen is Supply Chain Management (SCM).

In order to develop the SCM system the activities those have been selected to take effective decision making are considered in this assignment. A Strategic Management Plan, Activity on Node (AON), WBS, Activity duration tables are all elaborated in this assignment. In addition to this, a Gantt chart and a resource management program are elaborated in this assignment.

In this new era of technology mostly for managing information, material details, raw material and cash flow Supply Chain management (SCM) is widely used in both the medium and large sized enterprises. SMC is an implementation action or integrative business philosophy used for managing mainly materials. In other words SCM helps to reduce operational cost and delay distribution by improving the supply flow to satisfy global consumers. The current globalization scenario shows that, SCM and customer service has become a significant aspect in corporate world. The SCM will give direct interacting opportunities to the consumers, distributors and suppliers.

Schedule Module development

AON (Activity on Node) diagram.

Figure 1: Activity on Nodes for the SCM implementation project

(Source: Created by author)

Project schedule model maintenance	Frequency	By who
Monthly	System developer, project manager

Control thresholds	Project level	When	Units
Variance measured	Management level	Execution phase

Rule of performance measured	Frequency	By who
Rule of EVM measured	Weekly	Finance manager

Reporting format

Report content

To whom

Done by whom

Frequency

Progress status

Project objectives

Goals

Project manager

Team workers

Monthly

WBS	Task Name
0	Developing project schedule for SCM
1	Project design phase
1.1	Implementation of project team
1.1.1	performance analysis
1.1.2	Worker’s skill measurement
1.2	communication management program
1.2.1	Inventory management plan
1.2.2	Team meeting
1.3	Resource identification
1.3.1	Gathering
1.3.2	Analysis
1.4	Identification of supply chain characteristics
1.4.1	Project planning phase
1.4.2	SCM tool selection
1.4.3	Developing strategic objectives
1.4.4	Constructing supply chain structure
1.4.5	Milestone 1: Project outline submission
1.5	Feasibility study
1.5.1	Contract with suppliers and distributors
1.5.2	audit planning
1.5.3	Milestone 2: Completion of design phase
2	Project Execution and closure phase
2.1	Extraction of suitable attributes
2.1.1	Detailing evaluation contents
2.1.2	Screening the unqualified
2.2	Closure phase
2.2.1	Monitoring program
2.2.2	Project monitoring
2.2.3	Milestone 3: Completion of development and implementation phase
2.3	Stakeholders signoff
2.3.1	Final SMC document presentation
2.3.2	feedback analysis
2.4	change management plan
2.4.1	change management implementation
2.4.2	maintenance planning
2.4.3	change management plan implemenation
2.4.4	Milestone4: Final document submission
2.5	training
2.5.1	technical training
2.5.2	non technical training

Figure 2: WBS for the project

(Source: created by author)

Resource Name	Type	Max. Units	Std. Rate	Base Calendar	Roles
Resource manager	Work	100%	$22.00/hr	Standard	To identify resources
project manager	Work	100%	$35.00/hr	Standard	Tracking and monitoring
Finance manager	Work	100%	$18.00/hr	Standard	Feasibility study
Worker’s tool	Material		$50.00		Meet Project objectives
distributors	Work	100%	$18.00/hr	Standard
suppliers	Work	100%	$25.00/hr	Standard	Supply needful materials
Hardware requirements	Material		$3,000.00		Supply hardware components
Software requirements	Material		$5,500.00		Supply software components
System developer	Work	100%	$35.00/hr	Standard	Develop the system
System tester	Work	100%	$35.00/hr	Standard	To test the system
designer	Work	100%	$22.00/hr	Standard	To design the SCM system
computers	Material		$36,010.00
additional cost	Material		$40,000.00
workers	Work	100%	$35.00/hr	Standard
other cost	Material		$10,500.00

WBS	Task Name	Duration	Start	Finish	Predecessors	Resource Names	Cost
0	Developing project schedule for SCM	90 days	Tue 11/20/18	Mon 3/25/19			$1,000,000.00
1.0	Project design phase	56 days	Tue 11/20/18	Tue 2/5/19			$555,424.00
1.1	Implementation of project team	12 days	Tue 11/20/18	Wed 12/5/18			$95,344.00
1.1.1	performance analysis	10 days	Tue 11/20/18	Mon 12/3/18		Resource manager,suppliers,Worker’s tool[1],designer,Finance manager,additional cost[1]	$47,010.00
1.1.2	Worker’s skill measurement	2 days	Tue 12/4/18	Wed 12/5/18	3	Resource manager,workers,other cost[1],System developer,computers [1],designer	$48,334.00
1.2	communication management program	23 days	Wed 12/5/18	Fri 1/4/19			$110,368.00
1.2.1	Inventory management plan	12 days	Wed 12/5/18	Thu 12/20/18	4FS-1 day	Finance manager,Software requirements[1],Worker’s tool[1],additional cost[1]	$47,278.00
1.2.2	Team meeting	10 days	Mon 12/24/18	Fri 1/4/19	6FS+1 day,4	additional cost[1],Software requirements[1],System developer,other cost[1],Finance manager,Worker’s tool[1],workers	$63,090.00
1.3	Resource identification	5 days	Mon 1/7/19	Fri 1/11/19			$97,580.00
1.3.1	Gathering	2 days	Fri 1/4/19	Mon 1/7/19	7FS-1 day	project manager,additional cost[1],other cost[1],System developer,Worker’s tool[1]	$51,670.00
1.3.2	Analysis	5 days	Tue 1/8/19	Mon 1/14/19	7FS+1 day	System developer,computers [1],Hardware requirements[1],Software requirements[1]	$45,910.00
1.4	Identification of supply chain characteristics	15 days	Thu 1/10/19	Wed 1/30/19			$165,128.00
1.4.1	Project planning phase	2 days	Fri 1/11/19	Mon 1/14/19	10FF+1 day,9	System tester,project manager,suppliers,additional cost[1]	$41,520.00
1.4.2	SCM tool selection	6 days	Thu 1/10/19	Thu 1/17/19	12SS-1 day	Hardware requirements[1],other cost[1],project manager,workers,Worker’s tool[1],additional cost[1],designer	$57,966.00
1.4.3	Developing strategic objectives	10 days	Wed 1/16/19	Tue 1/29/19	12FS+1 day	System developer,additional cost[1],designer,Hardware requirements[1],Worker’s tool[1]	$47,610.00
1.4.4	Constructing supply chain structure	2 days	Thu 1/31/19	Fri 2/1/19	13FS-1 day,14FS+1 day	Software requirements[1],workers,designer,project manager,System tester,other cost[1]	$18,032.00
1.4.5	Milestone 1: Project outline submission	0 days	Fri 1/11/19	Fri 1/11/19	8		$0.00
1.5	Feasibility study	4 days	Thu 1/31/19	Tue 2/5/19			$87,004.00
1.5.1	Contract with suppliers and distributors	2 days	Tue 1/15/19	Wed 1/16/19	16FS+1 day	project manager,workers,Worker’s tool[1],additional cost[1],System developer,Hardware requirements[1]	$44,730.00
1.5.2	audit planning	2 days	Fri 1/18/19	Mon 1/21/19	18FS+1 day	additional cost[1],designer,project manager,System developer,Resource manager,Worker’s tool[1],suppliers	$42,274.00
1.5.3	Milestone 2: Completion of design phase	0 days	Mon 1/21/19	Mon 1/21/19	19FS-1 day		$0.00
2	Project Execution and monitoring phase	35 days	Tue 2/5/19	Mon 3/25/19			$444,576.00
2.1	Extraction of suitable attributes	11 days	Tue 2/5/19	Tue 2/19/19			$96,880.00
2.1.1	Detailing evaluation contents	6 days	Tue 2/5/19	Tue 2/12/19	22,19SS+1 day	Hardware requirements[1],Software requirements[1],distributors,System developer,Worker’s tool[1],additional cost[1],project manager,designer	$53,830.00
2.1.2	Screening the unqualified	5 days	Wed 2/13/19	Tue 2/19/19	17,23	designer,Finance manager,workers,additional cost[1],Worker’s tool[1]	$43,050.00
2.2	Closure phase	21 days	Thu 2/14/19	Thu 3/14/19			$15,432.00
2.2.1	Monitoring program	2 days	Wed 2/20/19	Thu 2/21/19	24	Resource manager,suppliers,System tester,Worker’s tool[1],other cost[1]	$11,862.00
2.2.2	Project monitoring	5 days	Thu 2/14/19	Wed 2/20/19	26FF-1 day	Finance manager,System developer,Worker’s tool[1],project manager	$3,570.00
2.2.3	Milestone 3: Completion of developmet and implementation phase	0 days	Thu 3/14/19	Thu 3/14/19	34		$0.00
2.3	Stakeholders signoff	6 days	Thu 2/21/19	Thu 2/28/19			$97,874.00
2.3.1	Final SMC document presentation	6 days	Thu 2/21/19	Thu 2/28/19	27	project manager,Finance manager,Software requirements[1],System tester,additional cost[1],Worker’s tool[1]	$49,774.00
2.3.2	feedback analysis	5 days	Thu 2/21/19	Wed 2/27/19	27	designer,suppliers,Finance manager,additional cost[1],Software requirements[1]	$48,100.00
2.4	change management plan	14 days	Thu 2/28/19	Tue 3/19/19			$107,570.00
2.4.1	change management implementation	6 days	Thu 2/28/19	Thu 3/7/19	31,30FF+2 days	additional cost[1],other cost[1],project manager,Software requirements[1],suppliers,System developer,workers	$62,240.00
2.4.2	maintenance planning	5 days	Fri 3/8/19	Thu 3/14/19	33	Hardware requirements[1],System developer,additional cost[1],Worker’s tool[1],designer	$45,330.00
2.4.3	change management plan implemenation	3 days	Fri 3/15/19	Tue 3/19/19	34		$0.00
2.4.4	Milestone4: Final document submission	0 days	Mon 3/18/19	Mon 3/18/19	38		$0.00
2.5	training	13 days	Thu 3/7/19	Mon 3/25/19			$126,820.00
2.5.1	technical training	8 days	Thu 3/7/19	Mon 3/18/19	34SS-1 day	designer,Finance manager,computers [1],suppliers,System tester	$42,410.00
2.5.2	non technical training	5 days	Tue 3/19/19	Mon 3/25/19	38	Resource manager,suppliers,System tester,additional cost[1],computers [1],designer,distributors,Finance manager,project manager,workers	$84,410.00

WBS	Activity name	Optimistic	Most likely	Pessimistic	PERT estimate	variance	Standard deviation
1.1.1	performance analysis	9	10	12	10.2	1.0	0.50
1.1.2	Worker’s skill measurement	1	2	3	2.0	0.7	0.33
1.2.1	Inventory management plan	10	12	14	12.0	1.3	0.67
1.2.2	Team meeting	8	10	11	9.8	1.0	0.50
1.3.1	Gathering	1	2	4	2.2	1.0	0.50
1.3.2	Analysis	4	5	7	5.2	1.0	0.50
1.4.1	Project planning phase	1	2	4	2.2	1.0	0.50
1.4.2	SCM tool selection	5	6	7	6.0	0.7	0.33
1.4.3	Developing strategic objectives	8	10	11	9.8	1.0	0.50
1.4.4	Constructing supply chain structure	1	2	3	2.0	0.7	0.33
1.5.1	Contract with suppliers and distributors	1	2	4	2.2	1.0	0.50
1.5.2	audit planning	1	2	4	2.2	1.0	0.50
2.1.1	Detailing evaluation contents	5	6	8	6.2	1.0	0.50
2.1.2	Screening the unqualified	3	5	6	4.8	1.0	0.50
2.2.1	Monitoring program	1	2	3	2.0	0.7	0.33
2.2.2	Project monitoring	4	5	7	5.2	1.0	0.50
2.3.1	Final SMC document presentation	5	6	7	6.0	0.7	0.33
2.3.2	feedback analysis	3	5	7	5.0	1.3	0.67
2.4.1	change management implementation	5	6	8	6.2	1.0	0.50
2.4.2	maintenance planning	3	5	6	4.8	1.0	0.50
2.4.3	change management plan implementation	2	3	5	3.2	1.0	0.50
2.5.1	technical training	6	8	9	7.8	1.0	0.50
2.5.2	non technical training	3	5	7	5.0	1.3	0.67

Figure 3: Network Diagram of the SCM implementation project

(Source: Created by author)

The Excel Gantt chart designed and developed is given attached excel file.

Figure 4: Resource over allocation

(Source: Created by author)

Figure 5: After removing resource over allocation

(Source: Created by author)

Figure 4: Tracking Gantt chart view

(Source: Created by author)

Conclusion

From the overall discussion it can be concluded that, the ERP module is performing by the large business organization by a smaller supplier company. The profit structure that can be obtained from the project is also elaborated in this paper. The two sub deliverables followed by the project heads are project design phase and project execution and closure phase. The active precedence table, activity duration table and Excel sheets are being prepared to track the current status of the project.

References

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