An ERP life cycle has six steps:
Initiation: Basically in this step, the business case is forumalted which will help in identifying the costs, the need, the justification for the ERP system. Basically there are four rationales used for creating a business case , they are Technology, Business process, Strategy, Competition.
Planning: Consists of formulating the team, its goals, and objectives. It also involves determining the staffing requirements and establishing metrics for the implementation project. The team should consist of techincal people, business process owners, consultants to make is a successful team.
Analysis and Design : Analysis is done on the basis of “As Is”, “To Be” and “Gap” methods. The AS IS tries to identify the current funcationalites of the sytem and the TO BE tries to identify where the company needs to be. GAP Method identities the gap between where the business is right now and where it wants to be. this would help in taking the right steps to close the gap. “To Be” model is Technology/ERP Driven.
Realization—The realization phase entails acquiring resources, installing a base system, customizing it to the organization, extending it if necessary, and testing the implementation.
Transition—This is usually a relatively short phase during which the organization’s former information systems are replaced with the enterprise system.
Operation—The operation phase involves ongoing efforts to monitor system performance and tune the system as appropriate. It also involves the continuing process of training employees on the enterprise system
There are various tools available for project management.
1) Critical Path method: it provides a framework for planning and control and at the same time makes assumption about the time estimated and predecessor relationships.
2) Gantt chart: Bar chart used to show project schedule. It identifies the time constraints of the project very neatly.
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