ERP implementation in Lufthansa

BY GROUP 2 AMIT , AMRITESH, ANUSHA, ASEEM, VAMSI

Given data
Budget: $500000 Number of resources: 7 Time line: 1 years

Overview
Deutsche Lufthansa is the flag carrier of Germany and the largest airline in Europe, both in terms of overall passengers carried and fleet size. The airline is the world's fourth-largest airline in terms of overall passengers carried, operating services to 18 domestic destinations and 197 international destinations in 78 countries across Africa, Americas, Asia and Europe. Together with its partners, Lufthansa services around 410 destinations. With over 870 aircraft, it has one of the largest passenger airline fleets in the world when combined with its subsidiaries. Lufthansa's registered office and corporate headquarters are in Cologne, North Rhine-Westphalia, Germany. The main operations base, called Lufthansa Aviation Center (LAC), is located at Lufthansa's primary traffic hub at Frankfurt Airport. The majority of Lufthansa's pilots, ground staff, and flight attendants are based in Frankfurt. Lufthansa is a founding member of Star Alliance, the world's largest airline alliance, formed in 1997. The Lufthansa Group employs 117,000 people worldwide of 146 nationalities

What is ERP?
Enterprise resource planning (ERP) is business management software that allows an organization to use a system of integrated applications to manage the business. ERP software integrates all facets of an operation, including product planning, development, manufacturing processes, sales and marketing. ERP software typically consists of multiple enterprise software modules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organization. Each ERP module is focused on one area of business processes, such as product development or marketing. Some of the more common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR. The basic goal is to provide one central repository for all information that is shared by all the various ERP facets in order to smooth the flow of data across the organization.

ERP Implementation Program

Key phases of ERP implementation: Analysis of the company existing or designing new business process descriptions Inventory of the companys existing formal workflows or designing them for the key business areas ERP solution(s) evaluation and pre-selection for the trial(s) ERP solution(s) trial(s) Defining (if not previously existed), formalizing and finalizing the business process workflows based on the ERP trial(s) ERP Program (multiple in-scope projects) planning ERP Program execution and control the selected ERP solution customization, configuration, testing, staging and production (going live into operation) ERP program closing out and system post-implementation support maintenance, upgrades, user training

SCENARIO: 1
You are the project manager going to germany from India for doing the project and other team members are local persons whom with you will do the project.

ASAP model for ERP program delivery

ASAP model for ERP program delivery

Project Team Organization

ERP Implementation Roadmap

Program Preparation: Major Activities

Business Blueprint: Major Activities

Realization: Major Activities

Final Preparation: Major Activities

Go Live & Support: Major Activities

Assign of resources..
Phases/Team Members Phase 1: Program Preparation Phase 2: Business Blueprint Phase 3: Realization Phase 4: Final Preparations Phase 5: GoLive & Support 1 \/ 2 ALT 3 ALT 4 \/ 5 \/ 6 ALT

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Payment Milestones
Part A: License fees 100% at the start of the project Part B: Implementation fees as detailed below:

Sr. No. 1 2 3 4 5

Milestone Phase 1: Program Preparation Phase 2: Business Blueprint Phase 3: Realization Phase 4: Final Preparations Phase 5: GoLive & Support

% of contract charges payable before starting of a phase 10 20 30 25 15

PROJECT ASSUMPTIONS
Staff working hours occur on an 8:00am-5:00pm schedule. Failover scenarios are based upon a 5:30am to 6:30pm timeframe and a scenario/response matrix will be provided. Dedicated staff will remain in their current roles. Dedicated staff will cross train one another. Availability of ESD Networking and Facilities staff as needed. Availability of Partner and Vendor staff as needed. Replacement parts will be on site within four hours of notification. New hardware is functional. Project scope will not be modified. Database testing will utilize Mercury Loadrunner and require Business team assistance. Application/Database modifications will be scheduled so Mercury scripts can be used for testing. Normal availability of DIS and GA services and support.

KEY RISKS BY PROJECT PHASES

Levels Key risks
1. Lack of Top Management commitment and support 2. Limitation in resources 3. Failure to redesign business process 4. Lack of business and technical knowledge 5. Poor conflict management 6. Poor motivation and project team work 7. Underestimation of organizational structure and business processes 8. Lack of metrics for evaluating project efficiency and benefits 9. Lack of metrics for evaluating project work by phases 1. Unclear goals and objectives 2. Insufficient training of end-users 3. Poor of changes and risks management 4. Poor project management 5. Ineffective communications 6. Lack of competence of ERPs consultants 7. Lack of proper project planning and controlling 8. Inffective project cost and time management

Phase 1 x x

Project Phases Phase 2 Phase 3 Phase 4 x x x x x x x x x x x x x x x

Phase 5 x x

x x

x x x

x x x x x x x x x x x x x x x x x

x x x x

x x x x

1. Lack of vendor support and partnership 2. Poor integration of the infrastructure systems 3. Underestimation of system technical architecture 1. The design and implementation of system disrupts the business operations 2. Insufficient automation 3. Poor software troubleshooting 4. Data losses 5. Insufficient testing phase

x x x x

x x x x

x x x x x x x

x x