1. Using the information in this section, write a projectplan for NIBCO.2. Why is change management so important forNIBCO?3. Use the WBS and start a project plan using MicrosoftProject.Write a rationale for each of the cost summary 234 Chapter 5• PlanningChangeManagementConsultingBusinessProcessConsultingBusinessProcessPeopleTechnologyTechnologyConsultingFIGURE S-6 Project Management at NIBCOprovide services in order to implement SAP: peo- project is to manage the application and infra-ple, business process, and technology (as shown structure changes as part of an integrated projectin Figure 5-6). The people solution was to assistNIBCO in preparing the staff effectively to under- and responsibilities of each team as early in thestand their role in the organizational change and project lifespan as possible, thus mitigating po-add value through their active participation. To tential schedule overruns.assist NIBCO to take advantage of SAP's businesssolutions, business processes were designed. The of four components: managing communications,technology part of the integrated solution was toassist NIBCO in setting up the SAP infrastructurein order to satisfy business requirements. IBM'sview of the project was to have a balanced formalproject methodology approach between the newtechnology and the new organizational change. ogy changes. A training and education plan wasIBM recommended that NIBCO's core team assist also developed to provide ongoing educationalIBM in the SAP implementation. The project wasplanned to be built in two phases:plan. They wanted to correctly identify the rolesThe organizational change plan consistedbuilding teams, securing organizational commit-ment to change, and transferring skills. Thesefour working components were geared towardfacilitating the development of a sustainable or-ganization, the business process, and technol-reinforcement to the core, IT, functional, and ex-tended staff.The initial WBS was broken into an initialscoping and definition phase as well as an imple-mentation phase. The final project budget wasestimated to be about $17 million, 30 percenthigher than the previous estimate. One of themajor reasons for the increase was the inclusionof change management costs including train-• Phase 1 (approximately 6 weeks' duration):Preparation: Initial scoping and definition; and• Phase 2 (approximately 13 weeks' duration):Analysis, design, and implementation.Infrastructure and change management consul-tants were to build the transition to SAP R/3.Both training and organizational change man- ing. About one-third of the final budget was foragement were planned to continue through the technology infrastructure costs, including thetwo phases. IBMS's philosophy toward the proj- R/3 software. The cost summary and budget areect planning was that the key to a successful SAP shown in Table 5-7.Done Case+Study+FOR+IT...12:53 Chapter 5. Planning233NIBCO established all project standards andprocedures to make sure that project team membersoperate in an effective manner during the implemen- re-engineering work products. They conductedtation. Project planning continues during the entireimplementation and should be constantly refined.NIBCO also defined end-user training methods and ogy applications in the company to define initialdocumentation along with the overall implementa- scope and definition. The initial scope and defi-tion strategy. The SĂP planning process at NIBCO nition took about 2 weeks. The management atresulted in:from policies, procedures, organizational charts,financial information, survey data, and existinginterviews, gathered key business processes, andreviewed business issues and information technol-NIBCO reviewed and accepted the scope. Oncethe scope was approved, the team performed a• Project plan;• Project management standards and gap analysis to identify the areas of fit and non-fitprocedures;• Implementation strategy;• Project organization;• Configuration standards;• End-user training and documentation strategy; plan and team structure as required, which took a• Testing strategy;• Post-implementation support strategy;between existing business processes and SAP. Thegap analysis focused on technology and processfits and developed the functional solutions for allnon-fit processes. This activity took place for nearly3 weeks. The last activity was to refine the projectweek. NIBCO management approved this process.• Design of the company's system landscape, The project plan consisted of the following:including its setup and maintenance strategy;• Official start of the project, presentation of theinput mentioned above, and explanation forany issues or questions about the project fromthe kickoff meeting participants;• All project team members trained in introduc-tion to SAP, navigation skills, and knowledge strategy. The project scope as well as the projectof major integration points of the system; and• The formal sign-off of Phase 1.• Detailed project plan;• Risk management plan;• Migration plan;• Communication plan; and• Change management plan.NIBCO's project plan was aligned to itsplan reflected the strategy, and the organizationwase very much focused on achieving its strategicobjectives:PROJECT PLAN• Increase product development capability;• Transition from exporter to global organization;• Become a customer responsive organization;and• Develop supply and demand chain capabilities.The NIBCO team selected an implementation part-ner, a third-party consulting firm that can supportNIBCO's decision to implement a "big bang" ap-proach that is viewed in the industry as high risk.NIBCO chose IBM and Cap Gemini as the two final-ists after considering several potential consultingpartners. NIBCO picked IBM as its SAP implemen- in a big bang approach with a target completiontation partner. IBM was also chosen because of itsstrengths in technology and infrastructure consult-ing. "When we hired IBM, we hired them with the ness model. NIBCO was to engage the SAP consult-agreement that they were going to help us to do a ing group of IBM to work with the NIBCO processbig bang in the timeframe we wanted. As far as I team in a collaborative manner to maintain goodknow, IBM had not done a successful big bang up to chemistry with, coach, and mentor NIBCO staff.that point," said Jim Davis, project co-lead, Change The expected result was skill and knowledge trans-The project focus was to implement SAP R/3time of 15 months. NIBCO was to utilize predefinedbusiness processes in R/3 as a "good enough" busi-Management."A project plan was completed by a teamcomposed of NIBCO employees and IBM projectleaders. The joint team collected and reviewed data sisted of three major solutions integrated tofer to NIBCO employees so as to enable NĪBCO toreach its strategic objectives.IBM's consulting practice for NIBCO con-(continued)Done Case+Study+FOR+IT...12:53

Question

1. Using the information in this section, write a projectplan for NIBCO.2. Why is change management so important forNIBCO?3. Use the WBS and start a project plan using MicrosoftProject.Write a rationale for each of the cost summary 234 Chapter 5• PlanningChangeManagementConsultingBusinessProcessConsultingBusinessProcessPeopleTechnologyTechnologyConsultingFIGURE S-6 Project Management at NIBCOprovide services in order to implement SAP: peo- project is to manage the application and infra-ple, business process, and technology (as shown structure changes as part of an integrated projectin Figure 5-6). The people solution was to assistNIBCO in preparing the staff effectively to under- and responsibilities of each team as early in thestand their role in the organizational change and project lifespan as possible, thus mitigating po-add value through their active participation. To tential schedule overruns.assist NIBCO to take advantage of SAP's businesssolutions, business processes were designed. The of four components: managing communications,technology part of the integrated solution was toassist NIBCO in setting up the SAP infrastructurein order to satisfy business requirements. IBM'sview of the project was to have a balanced formalproject methodology approach between the newtechnology and the new organizational change. ogy changes. A training and education plan wasIBM recommended that NIBCO's core team assist also developed to provide ongoing educationalIBM in the SAP implementation. The project wasplanned to be built in two phases:plan. They wanted to correctly identify the rolesThe organizational change plan consistedbuilding teams, securing organizational commit-ment to change, and transferring skills. Thesefour working components were geared towardfacilitating the development of a sustainable or-ganization, the business process, and technol-reinforcement to the core, IT, functional, and ex-tended staff.The initial WBS was broken into an initialscoping and definition phase as well as an imple-mentation phase. The final project budget wasestimated to be about $17 million, 30 percenthigher than the previous estimate. One of themajor reasons for the increase was the inclusionof change management costs including train-• Phase 1 (approximately 6 weeks' duration):Preparation: Initial scoping and definition; and• Phase 2 (approximately 13 weeks' duration):Analysis, design, and implementation.Infrastructure and change management consul-tants were to build the transition to SAP R/3.Both training and organizational change man- ing. About one-third of the final budget was foragement were planned to continue through the technology infrastructure costs, including thetwo phases. IBMS's philosophy toward the proj- R/3 software. The cost summary and budget areect planning was that the key to a successful SAP shown in Table 5-7.Done Case+Study+FOR+IT...12:53 Chapter 5. Planning233NIBCO established all project standards andprocedures to make sure that project team membersoperate in an effective manner during the implemen- re-engineering work products. They conductedtation. Project planning continues during the entireimplementation and should be constantly refined.NIBCO also defined end-user training methods and ogy applications in the company to define initialdocumentation along with the overall implementa- scope and definition. The initial scope and defi-tion strategy. The SĂP planning process at NIBCO nition took about 2 weeks. The management atresulted in:from policies, procedures, organizational charts,financial information, survey data, and existinginterviews, gathered key business processes, andreviewed business issues and information technol-NIBCO reviewed and accepted the scope. Oncethe scope was approved, the team performed a• Project plan;• Project management standards and gap analysis to identify the areas of fit and non-fitprocedures;• Implementation strategy;• Project organization;• Configuration standards;• End-user training and documentation strategy; plan and team structure as required, which took a• Testing strategy;• Post-implementation support strategy;between existing business processes and SAP. Thegap analysis focused on technology and processfits and developed the functional solutions for allnon-fit processes. This activity took place for nearly3 weeks. The last activity was to refine the projectweek. NIBCO management approved this process.• Design of the company's system landscape, The project plan consisted of the following:including its setup and maintenance strategy;• Official start of the project, presentation of theinput mentioned above, and explanation forany issues or questions about the project fromthe kickoff meeting participants;• All project team members trained in introduc-tion to SAP, navigation skills, and knowledge strategy. The project scope as well as the projectof major integration points of the system; and• The formal sign-off of Phase 1.• Detailed project plan;• Risk management plan;• Migration plan;• Communication plan; and• Change management plan.NIBCO's project plan was aligned to itsplan reflected the strategy, and the organizationwase very much focused on achieving its strategicobjectives:PROJECT PLAN• Increase product development capability;• Transition from exporter to global organization;• Become a customer responsive organization;and• Develop supply and demand chain capabilities.The NIBCO team selected an implementation part-ner, a third-party consulting firm that can supportNIBCO's decision to implement a &#34;big bang&#34; ap-proach that is viewed in the industry as high risk.NIBCO chose IBM and Cap Gemini as the two final-ists after considering several potential consultingpartners. NIBCO picked IBM as its SAP implemen- in a big bang approach with a target completiontation partner. IBM was also chosen because of itsstrengths in technology and infrastructure consult-ing. &#34;When we hired IBM, we hired them with the ness model. NIBCO was to engage the SAP consult-agreement that they were going to help us to do a ing group of IBM to work with the NIBCO processbig bang in the timeframe we wanted. As far as I team in a collaborative manner to maintain goodknow, IBM had not done a successful big bang up to chemistry with, coach, and mentor NIBCO staff.that point,&#34; said Jim Davis, project co-lead, Change The expected result was skill and knowledge trans-The project focus was to implement SAP R/3time of 15 months. NIBCO was to utilize predefinedbusiness processes in R/3 as a &#34;good enough&#34; busi-Management.&#34;A project plan was completed by a teamcomposed of NIBCO employees and IBM projectleaders. The joint team collected and reviewed data sisted of three major solutions integrated tofer to NIBCO employees so as to enable NĪBCO toreach its strategic objectives.IBM's consulting practice for NIBCO con-(continued)Done Case+Study+FOR+IT...12:53

Accepted Answer

Nibco focuses upon the big bang approach. The project will be achieved by NIBCO workers and IBM…

1. Using the information in this section, write a project plan for NIBCO. 2. Why is change management so important for NIBCO? 3. Use the WBS and start a project plan using Microsoft Project. Write a rationale for each of the cost summary