PROJECT MANAGEMENT

A PROJECT

ON

BANDRA WORLI SEA LINK & ERP IMPLEMENTATION IN FMCG INDUSTRY

2018-2020

PRESENTED BY: GROUP 3

Abhijeet Parmar: 18BSPHH01C0028
Kirti Purohit: 18BSPHH01C0581
Sohini Das: 18BSPHH01C1307
Utkarsh Roy: 18BSPHH01C1470
Urvashi Arya: 18BSPHH01C1464
 PROJECT 1:
BANDRA-WORLI SEA LINK
PROJECT
1. INITIAL PHASE PLANNING

1.1 Problem Statement

The construction of Bandra-Worli Sea link was necessitated by the only road link-
Mahim Causeway connecting the western suburbs to Mumbai central business districts
which happens to be highly trafficulated and congested at peak hours and became a
bottleneck for the north-south western corridor.
Mahim Causeway was the only connecting route between suburbs and south Mumbai
which was the root cause of heavy traffic congestion during peak hours in the western
suburbs. This also affected the efficiency and links to the economic metropolis and the
internationally used harbor.

1.2 Root Cause Analysis

Mumbai and its suburbs have a total population approaching 13 million, making it the
Second most populous conurbation in the world after Shanghai. It suffers in similar ways
in terms of traffic as other heavily congested cities like Sao Paulo, Mexico City and
Bangkok.

The situation has worsened with the advancement of the local economy and the rise of
a huge middle-class population. Since the late 1990’s the local authorities in Mumbai
have undertaken ambitious plans to construct several flyovers, underpasses, tollway
corridors and sea links across bay water bodies to ease the congestion and many of the
projects are already implemented. One such project has been to connect the Bandra
and Worli points across Mahim Bay by a 5.6 km long tollway bridge with eight traffic
lanes for the exclusive use of fast moving vehicles, thus opening a north-south corridor
known as the Bandra Worli Sea Link which has been now re-named ‘Rajiv Gandhi Setu’.
It consists of a cable stayed bridge of 500m main span over the Bandra
Channel and a second cable stayed bridge of main span 150m over the
Worli Channel.

The new sea crossing has already made an enormous contribution to easing congestion
on the busy roads of this metropolis. The government also has ambitious plans to
connect Worli with Nariman Point across the sea and also to connect Sewri in South
Mumbai to Nhava in Navi Mumbai over the sea with an eight-lane (two-way, four-lane)
 highway bridge, the Mumbai Trans Harbor Link (MTHL) bridge which will be India's
longest sea link project. The initial design of the Bandra Worli Sea Link was conceived by
an eminent US-based consulting company that came up with the latest innovations and
techniques of modern day engineering in their concept.

1.3 Project Charter

1.3.1 Problem Statement:

The construction of Bandra-Worli Sea link was necessitated by the only road link-
Mahim Causeway connecting the western suburbs to Mumbai central business
districts which happens to be highly trafficulated and congested at peak hours and
became a bottleneck for the north-south western corridor.
Mahim Causeway was the only connecting route between suburbs and south
Mumbai which was the root cause of heavy traffic congestion during peak hours in
the western suburbs. This also affected the efficiency and links to the economic
metropolis and the internationally used harbor.

1.3.2 Objectives
The underlying objective behind construction of Bandra-Worli Sea Link was to
identify a sustainable project having no or minimal adverse effect on marine life
and livelihood of the neighborhood residents while addressing the issue of high
traffic congestion in the area.
Major objectives identifiied for the Bandra-Worli Sea link are as follows:
 To reduce traffic congestion in the economic metropolis and internationally
used harbor.
 To identify the most feasible and cost effective alternative to overcome the
problem of trafficulation.
 To reduce the number of road accidents by upgrading the road transportation
network.
 To reduce both air and noise pollution in Dadar, Mahim, Prabhadevi and Worli
along existing roads channel.

1.3.3 Major Deliverables

 An 8-lane bridge.
 The sea-link should link Bandra and the western suburbs of Mumbai.
  An intelligent bridge system should include efficient-
 Surveillance
 Traffic monitoring system
 Emergency support
 Power supply
 Road lighting system

1.3.4 Timeline

Project ProposalFeasibility StudyProject SanctioningLaying King PilesApproval to lose Project

Oct’ 1992 Oct’ 1993 Jan’ 1999 Feb’ 2001 July 2009

1.3.5 Milestone
The major milestones of the Bandra-Worli Sea Link are-
 Construction of a flyover over Love Grove junction in Worli.
 Construction of a cloverleaf interchanges at the intersection of the Western
Express Highway and S.V. Road in Bandra.
 Modern toll plaza.
 Construction of solid approach road from the interchange to the Toll Plaza on
the Bandra side along with a public promenade.
 Construction of the central cable-stayed spans with northern and southern
viaducts from Worli to the Toll Plaza at Bandra end.
 Improvements to Khan Abdul Gaffar Khan Road. The fourth project was the
main phase of Bandra–Worli Sea Link Project, with the other packages
providing supporting infrastructure for the sea link.

1.3.6 Budget Estimate

Funding Source: Housing and Urban Development Corporation was the major
source of finance for the project, funding upto Rs. 200 crores to the project.
State Bank of Mysore, Punjab National Bank, Srei International Bank, Jammu and
Kashmir Bank, IDFC along with UTI were amongst the other lenders.
 Estimate: The project was initially estimated to be completed in Rs. 300 Crores.

Bridge Features:
 8-lane Bridge with 2 lanes dedicated for buses.
 Unique bridge design for the Link Bridge to emerge as a landmark structure
in the city.
 Single tower supported 500 meter long cable-stayed bridge at Bandra
Channel and twin tower supported 350 m cable-stayed bridge at Worli
Channel for each carriageway.
 Modern toll plaza of 16 lanes with automated toll collection system.
 An intelligent bridge with state-of-the-art systems for traffic monitoring,
surveillance, information and guidance, instrumentation, emergency support
and more.
 Development of promenade and landscaping to enhance the environment.

1.3.7 Constraints
 A number of project deadlines were missed leading to the delay in project
delivery due to payment disputes and fishermen protests.
 Cost overrun and time overrun.
 Experts opined that though the bridge reduces the travel time to 7 minutes, this
duration is just from the end points of the sea-link. However, the actual travel
time is as high as almost 15 minutes beyond the boundaries of the bridge

1.3.8 Stakeholders
The major stakeholders in Bandra-Worli Sea Link are as follows-
 Hindustan Construction Company
 Maharashtra State Road Development Corporation
 Maharashtra State Government
 Ministry of Environmental Affairs
 Dar-Al Handasah
 State Pollution Control Board
 Indian People’s tribunal on environment and human rights
 Akhil Maharashtra Machhimar Kriti Samiti
  Employees

Dar Al-Handasah Consultants designed the bridge along with the Jacobs
Engineering Group Inc. The geotechnical engineering was carried out by Lachel
Felice & Associates Inc. Hindustan Construction Company was the main
contractors and were responsible for major deliverable along with China Harbour
Engineering Corporation as their foreign partners.

Mageba SA supplied the expansion joints, the launching of pre-cast segments was
carried out by Freight Wings Pvt Ltd and the Shanghai Pujyang Cable Company
sourced the cables. M/s Dar Consultants were asked to design, analyse, proof
check and supervise the various milestones of the project.

1.5 Stakeholder Deliverable

Stakeholder Stakeholder Deliverables

Maharashtra State Road Development Client (Project Initiator)
Corporation (MSRDC)
Central Water and Power Research Research and Feasibility
Station

Hindustan Construction Company and Project Contractor

their foreign partner China Harbour
Engineering
Dar-Al Handasah Project Managers

Lachel Felice & Associates Inc Geotechnical engineering

Dar Al-Handasah Consultants and Jacob Design Consultants

engineering India pvt limited

VSL Singapore Pvt Ltd Technical Consultants

Bajaj Electricals Illumination and Electric Power
Distribution
Mageba SA Expansion joints
 Shanghai Pujyang Cable Outsourcing of Stay Cables

Ultra Tech Supplier of Cement

Tata Steel, RIN Ltd & SAIL Supplier of Steel
ELKEM International Ltd Supplier of Micro-Silica
DOKA (Australia) Supplier of Plyon framework

1.4 Resource Overview and Resource Cost Overview

1.6 RACI
RACI stands for Responsible, Accountable, Consulted, and Informed.
The RACI chart for Bandra-Worli Sea Link is depicted below:
2 PLANNING PHASE PLANNING

2.1 Work Breakdown Structure

It is a hierarchical tree structure that outline the overall project and breaks it down into
small and manageable portions. The main purpose of WBS is to present how smaller
chunk of work can be done simultaneously by different teams working laterally, thereby
leading to better team productivity. The items at the lowest levels of WBS are known as
work packages. The WBS can be depicted as:

a. Phase Based Structure:

Project activities are defined based on the project phases.

b. Deliverable-based Structure:

Project activities are defined based on the agreed deliverables.

c. Responsibility-based Structure:
Project activities are defined based on the organisation units
 IH
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We start off by listing out the activities involved in the construction of Bandra - Worli Sea
link followed by which Work Break Down structure using MS Project will be constructed.

S. Work Classification Work Description

No.
1. Define Project Project Proposal – Oct 1992
2. Feasibility Studies – Oct 1993
3. Project Drawings* – Jan 1995
4. Project Plan and Generic Cost Plan* – Aug 1998
5. Project Sanctioning – Jan 1999
6. Detail Design, Tender Architectural Design* – Nov 1996
7. and Permissions Structural Design – May 1998
8. Submit End Stage Report – Nov 1998
9. Govt. Sanctions* – March 1999
10. Land Acquisition* – May 1999
11. Contractor Selection* – Oct 1999
12. Technology Selection* – Dec 1999
13. Construction Traffic Diversion* – March 2000
14. Soil Excavation* – April 2000
15. Laying King Piles* – Feb 2001
16. Erection of construction decks* – July 2001
17. Socketing of piers* – Dec 2001
18. Bridge Bearings* – Nov 2002
19. Laying Centre Tower* – March 2003
20. Laying Expansion Joints* – Aug 2004
21. Cable Spacing* – Sept 2006
22. Cable Support with Bridge Links* – Jan 2007
23. Span match of Concrete Box Girder Sections* – Aug
2007
24. Ramp connection with Freeways* – Jan 2008
25. Anti-Rusting measures* – April 2008
26. Laying Road Surface* – July 2008
27. Diaphragm Wall construction* – Aug 2008
28. Water Proofing* – Aug 2008
29. Water Drainage installation* – Oct 2008
30. Electrical Installations* – Oct 2008
31. Toll Plaza installation* – Dec 2008
32. Project Closure Bridge Inauguration – June 2009
33. Approval to close project* – July 2009
 (Values marked with * means that they have been assumed due to unavailability of data)

2.2 Project Risk Study

Risks are defined by uncertainties and unplanned events that can have a negative impact
on the project outcome. In order to identify Risk and their effect on each activity
involved in the project, following 4 parameters have been taken up:

A. RISK BREAKDOWN STRUCTURE: The first step is to identify risks and categories based
on certain criterions, already done in Risk Analysis. RBS is a hierarchical
representation of risks, considering higher to finer level of risks. In this project we
have divided the risk into different categories similar to WBS. In the table below, all
the risks have been listed down which has been categories using MS Project. As per
the Risk Analysis, RBS has also been divided into 4 categories i.e. Time, People, Cost
and Contract.
 RISKBREAKOOWN
STRUCTURE

People

•ldi·di
.
B. Risk Severity Matrix: In the previous step, especially in RBS, we come to know the
qualitative aspect of risks which carry broader meanings. In order to tackle those risks
and measure their effect in real time, we use ‘Risk Severity Matrix’, that cover the
quantitative aspect of risk, which can ultimately be used to bring down the overall
uncertainty involved in a project. The Feasibility Project Risk is an analysis and
evaluation of ‘Bandra-Worli Sea Link Project’ to determine if it is:
a. Technically Feasible
b. Financially Feasible

In the FPR, in order to carry out Risk Analysis, we have taken the below mentioned
parameters:
a. Likelihood (Lij): The probability of happening of i(th) risk for j(th) activity.
b. Weightage (Wij): Corresponding weightage of each activity
c. Impact (Iij): Impact of i(th) risk on j(th) activity
d. Composite Likelihood Factor (CLFj): The likelihood of all risk sources for each
activity j
e. Composite Impact Factor (CIFj): The impact of all risk sources for each activity j
 FEASIBILTY PROJECT RISK - BANDRA WORLI SEA LINK PROJECT
S. No. Risk Description Likelihood (Lij) Weightage (Wij) Impact (Iij)
1 Feasibility Project Risk 1 - Risks at Defining Stage
a. Project Proposal 0.30 0.015 0.50
b. Feasibility Studies 0.40 0.025 0.75
c. Project Drawings 0.20 0.010 0.55
d. Project Plan and Generic Cost Plan 0.25 0.020 0.75
e. Project Sanctioning 0.20 0.010 0.50
CLF = 0.0235 ; CIF = 0.05175 Total = 0.080
2 Feasibility Project Risk 1 - Risks at Planning Stage
a. Architectural Design 0.40 0.015 0.30
b. Structural Design 0.50 0.025 0.40
c. Submit End Stage Report 0.20 0.010 0.25
d. Govt. Sanctions 0.20 0.030 0.60
e. Land Acquisition 0.45 0.025 0.80
f. Contractor Selection 0.20 0.020 0.70
g. Technology Selection 0.25 0.020 0.65
CLF = 0.04675 ; CIF = 0.082 Total = 0.145
3 Feasibility Project Risk 1 - Risks at Construction Stage
a. Traffic Diversion 0.15 0.025 0.30
b. Soil Excavation 0.10 0.030 0.30
c. Laying King Piles 0.20 0.045 0.35
d. Erection of construction decks 0.25 0.050 0.50
e. Socketing of piers 0.35 0.040 0.45
f. Bridge Bearings 0.15 0.035 0.35
g. Laying Centre Tower 0.45 0.050 0.80
h. Laying Expansion Joints 0.35 0.040 0.70
i. Cable Spacing 0.50 0.060 0.75
j. Cable Support with Bridge Links 0.50 0.080 0.80
k. Span match of Concrete Box Girder Sections 0.40 0.065 0.85
l. Ramp connection with Freeways 0.30 0.055 0.65
m. Anti-Rusting measures 0.30 0.035 0.55
n. Laying Road Surface 0.20 0.025 0.45
o. Diaphragm Wall construction 0.10 0.015 0.35
p. Water Proofing 0.15 0.020 0.30
q. Water Drainage installation 0.15 0.015 0.30
r. Electrical Installations 0.35 0.050 0.50
s. Toll Plaza installation 0.20 0.040 0.25
CLF = 0.24425 ; CIF = 0.43675 Total = 0.755
4 Feasibility Project Risk 1 - Risks at Project Closure Stage
a. Bridge Inauguration 0.10 0.010 0.30
b. Approval to close project 0.10 0.010 0.30
CLF = 0.002 ; CIF = 0.006 Total = 0.02
CLF(Feasibility) = 0.3165
CIF(Feasibility) = 0.5765 Grand Total = 1

Risk Severity Analysis is carried out to identify and analyze potential issues or in our
case, activities that could have negatively impacted the construction of Bandra Worli
Sea Link Project. We have classified the risk parameters below, according to which
risk level has been indicated in Risk Severity Analysis Table.
 RISK SEVERITY CLASSIFICATION
Severity Classification
0 - 0.0001 Very Low
0.0001 - 0.0005 Low
0.0005 - 0.001 Medium
0.001 - 0.002 High
0.002 - 1 Very High

RISK SEVERITY ANALYSIS

Project Risk Description Severity
(Activity) CLFj CIFj CLFj x CIFj Inference
Project Proposal 0.0045 0.0075 0.000034 Very Low
Feasibility Studies 0.0100 0.0188 0.000188 Low
Project Drawings 0.0020 0.0055 0.000011 Very Low
Project Plan and Generic
Cost Plan 0.0050 0.0150 0.000075 Very Low
Project Sanctioning 0.0020 0.005 0.000010 Very Low
Architectural Design 0.0060 0.0045 0.000027 Very Low
Structural Design 0.0125 0.01 0.000125 Low
Submit End Stage Report 0.0020 0.0025 0.000005 Very Low
Govt. Sanctions 0.0060 0.0180 0.000108 Low
Land Acquisition 0.0113 0.02 0.000225 Low
Contractor Selection 0.004 0.014 0.000056 Very Low
Technology Selection 0.005 0.013 0.000065 Very Low
Traffic Diversion 0.004 0.0075 0.000028 Very Low
Soil Excavation 0.003 0.009 0.000027 Very Low
Laying King Piles 0.009 0.0158 0.000142 Low
Erection of construction
decks 0.013 0.025 0.000313 Low
Socketing of piers 0.014 0.018 0.000252 Low
Bridge Bearings 0.005 0.0123 0.000064 Very Low
Laying Centre Tower 0.023 0.04 0.000900 Medium
Laying Expansion Joints 0.014 0.028 0.000392 Low
Cable Spacing 0.03 0.045 0.001350 High
Cable Support with Bridge
Links 0.04 0.064 0.002560 Very High
Span match of Concrete 0.026 0.0553 0.001437 High
 Box Girder Sections
Ramp connection with
Freeways 0.017 0.0358 0.000590 Medium
Anti-Rusting measures 0.011 0.0193 0.000202 Low
Laying Road Surface 0.005 0.0113 0.000056 Very Low
Diaphragm Wall
construction 0.002 0.0053 0.000008 Very Low
Water Proofing 0.003 0.006 0.000018 Very Low
Water Drainage installation 0.002 0.0045 0.000010 Very Low
Electrical Installations 0.018 0.025 0.000438 Low
Toll Plaza installation 0.008 0.01 0.000080 Very Low
Bridge Inauguration 0.001 0.003 0.000003 Very Low
Approval to close project 0.001 0.003 0.000003 Very Low

C. Project Risk Analysis: Risk Analysis involves how project outcomes and overall
objectives might defer due to the impact of the events involving varying degrees
of risk. Once the risks are identified, they are analyzed to observe the quantitative
and qualitative impact of the risk on the project, in order to minimize the
potential damage by the risk.

The table below depicts common risks involved in the project.

S. RISK CATEGORY RISK SOURCE DESCRIPTION

N O.
1. TIME DELAY IN PROJECT APPROVAL REPORT (DPR)
2. DELAYS IN LAND ACQUISITION
3. DELAYS IN GOVERNMENT APPROVALS
4. DESIGN RISK
5. MAJOR/MINOR ACCIDENTS DURING CONSTRUCTION
6. WEATHER UNCERTAINTY
7. POLITICAL RISKS
8. TECHNOLOGY SELECTION RISKS
9. PEOPLE LABOUR SHORTAGES
10. LABOUR STRIKES AND UNION RISKS
11. COST FINANCIAL AND INVESTMENT RISKS
12. COST ESCALATIONS
13. INFLATION RISKS
 14 TECHNOLOGY SELECTION RISKS
15. CONTRACT LACK OF CLARITY
16. SUBCONTRACTOR ITEMS

Now that we have categorized different risks, the effect of these Risks will be
examined.

a. Time: Time delays occur due to various reasons ranging from approvals to
deliverable changes. It can also happen due to uncertain factors like weather
and part/machinery failures. In Bandra Worli Sea Link Project, the project kick off
itself was delayed due to government approvals and feasibility issues. Changes
in bridge design also pushed the deadline by 1 year.

b. People: Labor and Resource allocation is one of the key problem faced by
project managers as many resources might not be available at certain periods
due to resource specification/specialization required for particular tasks.

c. Cost: No project can start and proceed without the inflow of investments at the
right time. In this project, due to technical changes in the project, there is cost
escalation during the planning phase which should have been sorted in the
initiation – project feasibility phase itself. Cost factor is also affected by macro-
economic factors like inflation, interest rates etc.

d. Contract: A contract defines the expectations of the client to the service

provider along with other constraints related to the project environment.

D. Risk Register:
It is tool used in Project Management and Risk Management to identify potential risk
in a project to prevent deviations from the estimated outcomes. In other words, it
provides a mechanism to recognize potential risks and then map out different paths
to get the project back on track, if those risks come to reality. The following path is
used to create the Risk Register:

a. Create the Risk Register

b. Record Risks with higher severity
 c. Assign a unique identification order/number to each risk element
d. Apply possible solutions to the risks and monitor their effectiveness

2.3 Project Budgeting

The project was initially allocated a budget of Rs. 300 crores. However, the project cost
escalated to almost 6 times of its initial cost and the Bandra-Worli Sea Link was finally
completed for Rs. 1,684 crores.

2.4 Feasibility Analysis

Feasibility study focuses at evaluating and analyzing the potential of the proposed
project. It is based on extensive investigation and research with an aim to support the
decision making.

Feasibility study aims to rationally uncovering the underlying strengths and weaknesses
of an existing business or new preposition, threats or opportunities in the surrounding
environment along with the resources analysis and prospect for success.
In other words, two major factors to analyze feasibility are cost requirement and derived
value from the project. The feasibility study is done prior technical development and
project implementation.

The objective of feasibility study is as follows-

 Legal Feasibility:
It confirms if the proposed system is in line with the legal requirements or not. It
forms the basis of weather the project is good to advance or not.
 System and Technology Feasibility:
It provides an outline of the design of system requirements for the proposed project.
It determines whether the company has the technical expertise to handle and deliver
the project or not.

 Operational Feasibility:
It evaluates the extent to which the proposed project fits in the existing business
environment and area of expertise with regards to schedule, delivery date, corporate
culture and prevailing business processes.
 Economic Feasibility:
 The aim of the economic feasibility is to identify whether the project shows positive
economic benefits to the organization or not. It includes identification and
quantification of all the benefits expected of the project.
 Technical Feasibility:
It aims at identifying current technical resources available and their applicability to
the expected needs of the proposed project.
 Schedule Feasibility:
It estimates the duration required for the system development and if the project can
be completed in the same duration or not.

Hindustan Construction Company won the tender for Bandra-Worli Sea Link Project
during 1999 at an estimated project budget of Rs. 665.81 Crore for completion by March
2003.
However, due to poor progress of work by the contractor and unfavorable weather
conditions, appointment of a new project designing firm and changes in the technical
specifications, the project implementation was delayed. As a result of this, the estimated
cost of the project was revised

2.5 Constraint Analysis

1. Time Overshoot: The project started in October 2000, was slated to be complete by
March 2003. But due to technical changes made to the main part of the project i.e.
Package 4, the completion date was revised to April 2008. We have identified three
main reason for time delays during the tenure of the project:
a. Decision Lag by Contractor: The responsibility of the setting up of the casting yard
on a previously identified land was given to the Contractor. Even though the land
was made available in Sept 2000, the Contractor chose another location which
could only be made available after 5 months, being the 1st reason for the time
delay.
b. Lack of Planning in Land Acquisition: For the approach road, the land reclamation
of 27 hectares was needed, out of which the company had obtained only 4.7
hectares. To cover this off, they acquired the need land quickly but this landed
them in protests from the environmental group, pushing its deadline from Jan
2000 to April 2000, stopping the work for 105 days.
c. Design Changes during the construction phase: As absurd as it can be, a design
change was proposed during the construction phase itself by converting the
 approved ‘Arch Bridge’ at Worli to ‘Cable Stay Bridge’ leading to deadline push by
straight 12 months.
d. Work Halts: The Contractor, HCC halted the work for 18 months (April 2003 to
Sept 2004) against the appointment of new Consultants – Dar without their
consent.

2. Cost Overrun: The project underwent numerous changes which not only led to time
delays but also huge cost overruns. Originally, budgeted at Rs. 665 Crores, the revised
cost went as high as up to Rs. 1306 Crores, due to the reasons mentioned below-

a. Design changes for Package 4 = Rs. 110 Cr

b. Bandra Cable Stay twin tower = Rs. 20 Cr
c. Additional Claims of Contractor = Rs. 125 Cr
d. Project Delays for Package 1 to 3 = Rs. 103 Cr
e. Interest Rate Escalation = Rs. 28 Cr
f. Pre-Operative Expenses = Rs. 6 Cr
(The interest during construction was estimated to be Rs. 233 Cr which went up to
261 Cr. Similarly, the pre-operative expenses was estimated to be Rs. 79.49 Cr,
which went up to Rs. 85 Cr, mainly due to delay in completion of the project.

2.6 Milestone Analysis

a. Construction of a flyover over Love Grove junction in Worli: Consultants: M/s
Sverdrup Asia Ltd, M/s Shrikhande Consultants Pvt Ltd, M/s C. Felice & Company, M/s
KPMG India Pvt Ltd and M/s TPG (India) – construction: M/s Vichare & Co JV M/s JMC
Projects Pvt Ltd.

b. Construction of a cloverleaf interchanges at the intersection of the Western Express

Highway and S.V. Road in Bandra: Consultants: M/s Sverdrup Asia Ltd, M/s
Shrikhande Consultants Pvt Ltd, KPMG (India), TPG (India) – construction: M/s Uttar
Pradesh State Bridge Corp.

c. Construction of solid approach road from the interchange to the Toll Plaza on the
Bandra side along with a public promenade: Consultants: M/s Sverdrup Asia Ltd,
KPMG (India), TPG (India), C. Felice and Co – construction: Prakash Construction and
 Engineering Ltd.

d. Construction of the central cable-stayed spans with northern and southern viaducts
from Worli to the Toll Plaza at Bandra end: HCC has a five-year liability period for
maintenance of the bridge. The south bound carriageway was commissioned in July
2009 and remaining works are in progress.

e. Improvements to Khan Abdul Gaffar Khan Road. The fourth project was the main
phase of Bandra–Worli Sea Link Project, with the other packages providing supporting
infrastructure for the sea link

2.7 Stakeholder Analysis

 Hindustan Construction Company:

HCC (Hindustan Construction Corporation) won the tender for Bandra-Worli Sea Link
project in the year 1999. However, unfavorable weather conditions and heavy rainfall
(monsoon) posed as major obstacles to the commencement of the construction work.
This lead to delay in construction by 2 years, resulting which the construction of
bridge started in 2001 with the approved project budget alleviating from an initial
amount of Rs. 300 Crores to Rs. 650 Crores.

As a result of this, the projects prime consultant Severdup was dropped for failure to
provide a competent project management and Dar-Al Handasah was hired as the
Design Consultants. The group modified the project design by adding 2.8 Kilometers
to the length and splitting the two eight lane bridge into two 4 lane bridges. The initial
delay in project lead to the shift in scheduled delivery date from 2002 to 2004. The
total cost rose by Rs. 50 Crores but due to paucity of funds, bad monsoon and
unpredictable work, the project was further delayed.
To worsen the situation, fisherman’s concern about loss of livelihood and complaints
from environmentalists regarding damage to marine ecology created uncertainty over
project completion. As a result of it, the contractor requested for an additional fund
of Rs. 300 Crores to cover for the delay and design changes. But the government was
in a stand to offer not more than Rs. 120 Crores. The project cost rose to Rs. 1,306 till
2005 and finally the project was completed in 2009 for an amount of Rs. 1,684 Crores.
 Maharashtra State Road Development Corporation:
MSRDC was the project initiator. It thus had full authority to take decisions regarding
the project, had full control on economic assets, information communication and
control and detailed knowledge on project specifications and deliverables. The main
agenda behind the project was to reduce the traffic congestion in the area.

The changes in design of the sea link along with bad monsoon hitting the city lead to
huge burden on the Corporation to raise additional funds for the project. The project
was finally completed for Rs. 1,684 Crore over the estimated budget of Rs. 300
Crores.

 Maharashtra State Government:

Maharashtra State Government had a major role to regulate the project and ensure
for both economic and social feasibility of the project.

The government was the primary source of funding to the project. The deviation
between the planned and actual cost of the project lead to additional burden on the
government.

 Ministry of Environmental Affairs:

The sea link project was initially perceived as a threat to marine life and neighboring
area.

It was thus obvious that the project will invite resistance from Environmentalists and
local communities residing in the area. Thus, the Ministry was responsible for smooth
grant of permission for project completion.

 Dar-Al Handasah:
The original sea link design was proposed by Jacobs Sverdrup in 1999, which called for
the original cable-stayed span’s twin decks to share pylons. However, the contact was
later called off and given to Dar-Al Handasah due to unfavorable design and delayed
implementation by Sverdrup.
 Dar-Al Handasah later changed the design in such a way that allowed each deck to be
independently supported by its own pylon to strengthen the design and hoping for an
earlier start for toll revenue. The design for the sea link for altered twice which lead
to huge cost escalation.

 State Pollution Control Board:

The role of SPCB is to implement various environmental legislations such as Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution)
Act, Bio-chemical Waste Rules and so forth. The Board had nothing to do with the
economic assets of the project. It was just an arbitrator between the management
and the activist group in the sea link project.

A number of petitions were filed against the Bandra Worli project for which the Board
analyzed to identify if the petitions were appropriate or not.

 Akhil Maharashtra Machhimar Kriti Samiti:

Akhil Maharashtra Machhimar Kriti Samiti is the resident activist group that
comprised of the residents in vicinity who were against the sea link construction.
They felt that the project might harm the residents nearby. The Samiti filed a number
of petitions against the construction project. It led to temporary halt in the project
construction. However, the project surpassed all the allegations and was resumed
later.

 Indian People’s tribunal on environment and human rights:

IPT took shape in 1993 to conduct fair and credible investigations to focus on the
issues concerning environmental justice and human rights.

IPT was responsible for bringing all stake-watchers together to protect the interest of
all stakeholders.

 Employees:
The number of employees hired during the construction of the sea link varied
throughout the construction phase which is due to unusual halts in the project. The
 average number of employees hired during peak construction was 3,500 while the
average engineers hired were 150.

3 EXECUTION PHASE PLANNING

3.1 Critical Task/Activity

3.2 Budget Utilization

 Detailed project design: Rs. 5 Crores
 Tender and Permissions: Rs. 1 Crore
 Construction (Inclusive of wages): Rs. 1,578 Crore
 Other Facilities (such as Intelligent Bridge System and Power Supply Distribution and
Road Lighting System): Rs.100 Crore

3.3 Project Outcomes

The bridge has an average traffic of 37,500 vehicles per day.

 Savings in travelling time and reduction of vehicular traffic.

  Reduction in air and noise pollution near residential areas of Mahim, Prabhadevi,
Dadar.
 Reduction in number of accidents by upgrading the road transportation network.

4. CLOSING PHASE PLANNING

The project was completed and inaugurated in June 2009 for Rs. 1,684 Crores.

5. EARNED VALUE ANALYSIS:

Earned Value Analysis is used to measure a project’s progress at any given point of time
by forecasting its completion date, final cost and analyzing schedule and budget
variances.
In this we have taken the below mentioned 6 variables:
a. Cost variance: The variation in the actual cost incurred than the value earned at a
certain point of project time
b. Schedule variance: The variance in the earned value as compared to the planned
value estimated at the beginning of the project.
c. Cost Performance Index: A ratio of how much value the project holds with the cost
incurred at the point of time taken (in this case, 67%).
d. Scheduled Performance Index: A ratio that tells us how far ahead or how much are
we lacking in terms of value earned at the time reference and planned value.
e. Estimate to Completion: It gives you an estimate of the remaining cost to reach the
project completion despite of any delay that might have happened.
f. Estimate at Completion: It gives the total cost that we will incur including all the
delays during the project time.
PARAMETER FIGURES

Actual cost ₹ 70000,00,000.00

Estimate cost
₹ 66500,00,000.00
Work completed
50%
Cost Variance (EV - AC)
₹ -36750,00,000.00
Schedule Variance (EV - PV) ₹ -33250,00,000.00
Cost Performance Index (EV / AC)
48%
SCHEDULED PERFORMANCE INDEX (EV / PV)
50%
ESRIMATE TO COMPLETION ((BAC - EV) / CPI)
₹ 70000,00,000.00
ESTIMATE AT COMPLETION (ETC + AC)
₹ 140000,00,000.00
 REFERENCES:

1. http://msrdc.org/1307/Home
2. https://www.business-standard.com/article/economy-policy/update-maharashtra-
names-bandra-worli-sea-link-after-rajiv-gandhi-109070800189_1.html
3. https://timesofindia.indiatimes.com/city/mumbai/Bandra-Worli-sealink-opens-
midnight/articleshow/4718305.cms
4. https://indianexpress.com/article/cities/mumbai/as-toll-roads-face-fire-bandra-worli-
sea-link-struggles-for-a-profit/
5. https://www.hindustantimes.com/mumbai-news/mumbai-citizen-groups-against-
environmental-clearance-for-versova-bandra-sea-link/story-
7oUGzS3voks3TgezvGe9NM.html
6. https://timesofindia.indiatimes.com/city/mumbai/Fishermen-oppose-Mumbais-
coastal-road-plan/articleshow/10540027.cms
 PROJECT 2:
ERP IMPLEMENTATION
IN FMCG INDUSTRY
1. ENTERPRISE RESOURCE PLANNING:

To define, Enterprise Resource Planning (ERP) is system which brings all the decision
making information from all the departments in a company into one single place in
order to increase efficiency, productivity and profit of company. ERP consists of three
words Enterprise, Resource and Planning. There are many structures which deal with
resource planning. It is the initiative part that is important. ERP’s power and Potential
comes from the movement from traditional business to enterprise business model.
Before the start of Systems Integration, different departments in an organization were
responsible for developing their very own computer systems, each one working
distinctly using its own applications and data. Each and every department relied on the
others to transfer key information. Items such as employee numbers would be
generated in one system, then passed on and entered physically into the other
applications. This process was not convenient. The coordination of information was
manual, slow and unreliable. Mistakes happened, leading to additional complications as
mistaken data propagated throughout the organization. Enterprise Resource Planning
(ERP) standardizes and reduces the number of software fortes required in big
organizations. The ERP systems of today generally cover one or a number of the
following:

 Manufacturing Bills of material, scheduling, quality control, cost management.

 Supply Chain Management Inventory, order entry, purchasing.

 Financials General Ledger, cash flow, accounts payable, accounts receivable.

 Projects Costing, billing, expenses.

 Human Resources Payroll, benefits, training.

 Customer Relationship Management (CRM) Sales and marketing, commissions

 Data Warehouse, Reporting, Data Mining

FMCG INDUSTRY MARKET:

The FMCG industry market is very competitive in nature. If a retailer’s shelves are
empty of a manufacturer’s product, he will simply fill them with a challenging product.
This test of ensuring that the business is enhanced to cater to ever-changing market
demands is issue which every FMCG major is facing. The demands of a very competitive
market require a solution that supports process-centric collaboration inside and across
its value chain.
The key challenges which FMCG industry facing are:

 Arrival of modern trade in India

 Legacy systems and business infrastructure are unable to meet transaction and
process capability requirements of the modern trade
 Market fundamentals need companies to ensure availability of their products so
that they can respond quickly to customers’ orders in the most cost efficient
way. This is even more critical in the emerging modern trade scenario. The
distribution of goods crosswise the country in the right quantity, right time and
at the right place is already one of the main challenges they face. In order to
thrive in the era of modern trade, companies need to deliver a provision level
that is higher than what the industry is used to and operate a supply chain which
is greater to the competitors.
ROLE OF ERP IN FMCG INDUSTRY:

Manufacturers’ investment in strategic substructure, such as Enterprise Resource

Planning (ERP) and networks, can provide the groundwork to bring people, processes,
and relationships together to build an integrated business system that provisions the e-
business strategy for critical business initiatives without huge IT investments. The
importance lies in the degree to which the technology can be integrated and
interoperable to allow all of your systems and the Internet to work in concert.

Figure 1: ERP Systems Architecture

Such an example in the FMCG sector is the Dabur. Dabur implemented ERP in the year
2001. The project was named Project Synergy and it worked on the two ERP systems:
for the outbound logistics it runs QAD ERP suite known as MFG/PRO. For
manufacturing locations, there was BaaN. By 2005 Dabur started to feel the problem of
maintaining two independent ERP systems. They were facing issues like maintenance
costs and data redundancy. So, in April 2006, they migrated from standalone ERP
systems - Baan and Mfg. to centralized SAP ERP system for all business units (BUs).

EXPECTED FEATURES OF AN EFFICIENT ERP SYSTEM

1. Packaged Software
The ERP system should be a complete package of modules that are required by the
company. As far as Dabur is concerned, the system should comprise of modules like
Sales and Distribution, Materials Management, Production Planning, Quality
Management, Plant Maintenance, etc. The system modules should be well-integrated
and highly efficient.

2. Process the Majority of an Organization’s Transactions

The ERP system should cover as many purposes of the organization as possible, so that
most of the organization is brought under the umbrella of a centralized database
system.

3. Use a Data Warehouse

The ERP system should be accomplished of keeping an up-to-date database of all the
important information flowing through an organization, and all information should be
updated constantly, on a real time basis.
4. Accessibility
The ERP system should be designed in such a way that any authorized worker of the
organization, regardless of which department he is employed in, should be able to
contact the information contained in the ERP database, from anywhere in the
organization.

KEY STAKEHOLDERS IN ERP IMPLEMENTATION

1. Management
The most important stakeholder in the implementation of ERP is the management,
since it is the management which is accountable for the funding of the implementation.
Operational implementation an ERP system needs significant investment of time and
money on the part of the management. As such, it would be in their interest to ensure
that the system is working efficiently and achieving the desired results.

2. Employees
The next priority in the list would be the workers of the company. It has been observed
that employees in an organization are always less than open to ERP implementation in
their company, because they are worried that their jobs and positions in the
organization would be in danger. Therefore, employees need to be given assurance
that their services are still valuable in the company in order to ensure that their loyalty
near the company does not waver.

3. Customers
The consumers of Dabur are also involved because they would expect better service
and products from the company now that it has executed ERP software. So it is in the
interest of the company to ensure that it meets the customers’ expectations.

4. Suppliers
The suppliers of Dabur would also be interested in the ERP implementation
program of Dabur because the information supplied to them regarding orders,
materials and other production planning decisions would now be more accurate and
timely. Accordingly, they can meet the orders in time and without any mistakes as to
the quality and quantity of the goods to be supplied.

5. External Users

External users refer to the shareholders as well as the potential investors in the
company. This category of people would be interested in knowing how far the
implementation of ERP in the company has been successful and whether it has
achieved the results it originally set out to achieve. This knowledge might ultimately
play an important role in their decisions regarding their investment in the company.

BENEFITS OF ERP

DABUR is one of those companies who have implemented two ERP systems
successfully by streamlining its primary distribution system and outbound logistics. It
has used both MFG/PRO and BaaN. MFG/PRO can run in an offline mode using local
database and it is network independent which served as one of the major benefits of
this kind of system.They were facing issues like maintenance costs, data redundancy,
etc. So, in April 2006, they migrated from standalone ERP systems - Baan and Mfg to
centralized SAP ERP system for all business units (BUs).MFG/PRO is a fully integrated
ERP (Enterprise Resource Planning) solution, which includes manufacturing,
distribution, customer service and financial applications and back-end system (Baan)
for materials planning and production scheduling. Thus it helps create deliverable
processes in the outbound logistics and seamlessly integrate it with strategic inventory
management, credit control and sales generation.

The major advantages can be summarized as:

 It helped them to improve the sales dispatch to the Carrying and Forwarding
Agents (CFA). In an FMCG sector, the major chunk of sales happens at the end of the
month. Thus over 80% of the sales happen during this period. Hence they faced a
number of problems due to the sheer volume of the transactions and no system to
keep a track of all these. Some of the problems would be like sales returns and cheque
bouncing from ‘pushed’ sales to meet sales targets. ERP helped them to remove all
these glitches in their supply chain to make them into a more profitable organization.
 Improvement in collections. Collections have recorded an improvement of about
6 days and are more evenly spread over the month. This leads to considerable saving
on working capital locked up in out-bound logistics. The collection improvement has
also helped them to manage their 16 Account receivables and thus more efficiently
manage their working capital. In turn it has also helped them to reduce their bad debts.
 The ERP system has provided them with a platform for visibility of the data
across all the domains in the organization. Thus the stocks with the CFA are visible to
the central distribution planners in saleable and unsalable categories. This has helped
them to better plan their distribution and management by reducing the sales returns
and unsold stock inventory.
 In FMCG sector one of the major sources of income is the sale and promotion
schemes. Without an ERP system it becomes very difficult to track the changes in this
area especially when one is to monitor a base as huge as the whole of India. Thus the
ERP system has helped towards the central management of the sales schemes. The
schemes and free issues are now managed centrally at the corporate office and the ERP
system keeps a strong check on schemes leading to reduction in misuse of schemes in
the field.
 MFG/PRO gives real-time information sales situation of distributors, about their
inventory and improves the accuracy of demand forecasts. These demand forecasts are
then fed into the back-end system (Baan) for materials planning and production
scheduling. Integration of these two systems has significantly enhanced their efficiency.
Mfg. Pro is fully operational in the zonal offices, mother ware houses and CFAs and
Baan is already live in five manufacturing locations. Information on inventories, return
of products, collections done and dispatch orders from warehouses are now all
available at a central location.
 A Secondary Sales System has been implemented to provide countrywide
information on Secondary pipelines and sales by brand. This new Secondary Sales
System has played an important role in tracking brand-wise sales, and reducing pipeline
inventories by focusing on secondary sales.
 The improvement in area-wise and brand-wise inventory management has
scaled up the entire supply chain management through better sales forecasts,
production scheduling, materials planning, vendor management and raw material
sourcing.
 Company has implemented another new initiative of Claims Settlement using an
Intranet/ Extranet based system, for systematic tracking and settlement of claims. The
Company also implemented another major initiative-Employee Management System
(EMS), an intranet based HR-information system, including Payroll and PF processing.

IT INITIATIVES

 Migration from Baan and Mfg. ERP Systems to centralized SAP ERP system
from 1st April 2006 for all business units.
 Implementation of a country wide new WAN Infrastructure for
running centralized ERP system.
 Setting up of new Data Centre at KCO Head Office.
 Extension of Reach System to distributors for capturing Secondary Sales Data.
 Roll out of IT services to new plants and CFAs.

UPCOMING CHALLENGES

 Forward Integration of SAP with Distributors and Stockists.

 Backward Integration of SAP with Suppliers.
 Implementation of new POS system at Stockist point and integration with SAP-
ERP.
 Implementation of SAP HR and payroll.
 SAP Roll-out to Dabur Nepal Pvt. Ltd (DNPL) and other new businesses.

Problem Statement

Study the implementation of Enterprise Resource Planning within the organization

which has operations in over 56 countries and how the operations have been
integrated and analyze the challenges faced and derive learning out of the same.
Root cause analysis

1. Sales and Operations planning

o Product conceptualization
o Product design
o Engineering development
o Strategic & forecasted sales targets
o Define and communicate product intent
o Manage engineering changes

2. Master Resource Planning

o Develop family wise production plans

o Asses capacity

3. Master scheduling

o Schedule production runs based on demand forecasts and orders

o Develop capacity requirements
4. Sales planning

o Logistics
o Warehouse capacity
o Location planning
o Scheduling
o Dispatching
o Sales targets

5. Buy

o Manage supplier relationships

o Plan and order production material
o Non production material
o Track inbound material
o Receive and manage production material
o Receive and manage non-production material
o Receive and manage service parts

6. Inventory control
o Track receipts
o Maintain and record inventory levels
o Track outbound inventory

7. Make
o Produce product
o Control production levels
8. Inventory
o Track receipts
o Maintain and record inventory levels
o Track outbound inventory

9. Sell

o Order processing
o Product scheduling and demand smoothening
o Invoice product
o Ship product
o Track product information for stales and recalls
o Perform product returns
o Perform quality assurance

10. Manage Production Processes

o Manage Production Network
o Manage Production Performance
o Manage Production Orders and In-Process Products (WIP) Information
o Control Production Equipment
o Execute Maintenance Plans

11. Provide Human Resources (HR) Support

o Develop Human Resources
o Ensure Site Safety
o Manage Team Relations
o Plan and Administer Compensation and Benefits
12. Provide Financial Support

o Perform Accounts Receivable

o Perform Accounts Payable
 o Provide Financial Accounting and Controlling Support
o Perform Budgeting and Planning
o Plan Capital Assets
o Perform Cash Management
o Manage External Relations

KEY STAKEHOLDERS IN ERP IMPLEMENTATION

1. Management
The most significant stakeholder in the implementation of ERP is the management,
since it is the management which is responsible for the backing of the
implementation. Effective implementation an ERP system requires considerable
outlay of time and money on the part of the management. As such, it would be in
their interest to ensure that the system is working efficiently and achieving the
wanted results.

2. Employees
The next priority in the list would be the employees of the company. It has been
observed that employees in an organization are always less than receptive to ERP
implementation in their company, because they are concerned that their jobs and
positions in the organization would be in danger. Therefore, employees need to be
given assurance that their facilities are still valuable in the company in order to ensure
that their faithfulness towards the company does not waver.

3. Customers
The customers of Dabur are also involved because they would expect better service
and products from the company now that it has implemented ERP software. So it is in
the attention of the company to confirm that it meets the customers’ expectations.
4. Suppliers
The suppliers of Dabur would also be interested in the ERP implementation program of
Dabur because the information supplied to them concerning orders, materials and
other production planning decisions would now be more accurate and timely.
Therefore, they can meet the orders in time and without any mistakes as to the quality
and quantity of the goods to be supplied.

5. External Users
External users refer to the shareholders as well as the potential investors in the
company. This category of people would be involved in knowing how far the
implementation of ERP in the company has been successful and whether it has attained
the results it originally set out to achieve. This information might ultimately play an
important role in their decisions regarding their investment in the company.
Work Breakdown Structure

Project Charter
Project scope:
Study the implementation of ERP in one of the company Dabur which holds one of the
finest supply chain and a company which has been on the fast track on the growth with
its foot on the accelerator pedal in full throttle. Study the implementation of Enterprise
Resource Planning within the organization which has operations in over 56 countries
and how the operations have been integrated and analyze the challenges faced and
derive learning out of the same
PROJECT DELIVERABLES:

1. Identify five critical business processes

2. Plot the process map of the organization
3. Analyze the type of BPR implementation in the company
4. Analyze the ERP implementation in the company and the challenges
5. Business benefits and learnings

Milestone

 Initiate Project
 Approve Project Charter
 Approve Project Plan
 Invite Proposals for ERP System
 Receive ERP System Proposals
 Select ERP System
 Award Contract
 Invite Proposals for ERP Implementation
 Receive Proposals for ERP Implementation
 Select Implementer
 Award Contract
 Kick-OB Implementation
 Go Live with Parallel Run
 Cut-off with ERP System
 Close-Out ERP Project
Stakeholders:

Group Stakeholder Group Name

#
1. End user
2. Top management
3. IT Department
4. Project Team
5. Organization
6. Vendor
7. ERP Consultant
8. Employees from different department
9. Business processes experts

Project Life cycle Planning:

The project life cycle can be divided into four stages they are initiation, planning,
execution, maturity and control and conclusion. In order to implement ERP package at
an FMCG sector following steps can be followed in project life cycle planning.

Initiation Phase/Selection of package: In the Initiation phase the company develops

and committee consisting of top and Middle level managers. The committee is
responsible for selecting various packages available at their disposal. An ideal package
should include following characteristics.

 It should map closely with the organizational structure.

 It should ensure that business transitions between the various links existing
within the organization should be carried out efficiently.
 It should ensure smooth information flow between the internal and external
environment of the organizations.
 The data maintained within the organization should be synced to repository
properly.
Planning: During planning phase the resources are allocated to the individual
components and integration work breakdown structure and organisational breakdown
structure occurs with the RACI matrix so that we have an clear vison of resources
responsibility, accountability, who are the resources who we should consult and the
hierarchy of the people who need to be informed about the developments occurring in
the project.

Implementation/Execution: During implementation of the ERP at an FMCG industry

following steps takes place.

 Process study: During this phase information is obtained from the end user and
then the collected information is segregated across the various level of the
organizational structure.
 Process Finalization: Decisions are taken by both consultants and User at various
level of the organization. Consultants help in finalizing the functionalities that need to
be implemented and users are responsible for the business processes that are to be
incorporated.
 Configuration: During this process system is configured as user requirements.
 Gap analysis and resolution: This activity identifies the gap between the current
position of the organization and the future positions that are to be achieved a per
users’ requirements.
 Scenario development and testing: During this phase scenarios are developed as
per the information furnished by the user and tested. Each scenario is developed into
test cases for testing purpose.
 Master Data collection and cleaning for uploading to Production Client: Inter
and intra module interfaces are developed in the system by the consultants depending
upon the master data received from the end users. The master data includes Material
master, Customers, Assets, vendors, Board of management (BOM) work centres etc.
Apart from the historical data of the past transitions occurring with the organization is
also mentioned this reduces the gap between the new requirements a furnished in the
BRD (Business requirement document) and the old system that was in place.
 Training at all locations: In order to train people about the newly implemented
ERP system, the team responsible for developing the ERP module selects a senior
consultant how has been associated with the development phase of the each of the
module of ERP system. They provide functional KT (Knowledge Transfer) to user who is
mostly “master data team lead” at the FMCG site where the ERP system is
implemented. This constitute the first level of hierarchy in training. The 2 nd level of the
hierarchy consist of where the super user “Master data team lead” provides KT to the
each of the site champions. The 3 rd level of hierarchy consist of the flow of information
from site champion to end user.
 Cut Over activity: During this phase the team responsible for developing the ERP
system checks the framework through sanity testing and then program is deployed into
the host server. During this phase the client or the FMCG sector personal are not
advised to use the system.
Maturity and control: The maturity and control consist of flowing stages.

 Go Live: Once the deployment has taken place to the host server the code
becomes live for the users at the FMCG industry to be used by them for their data to
day activity.
 Once the system is live, there are chances that some of the functionality won’t
work as desired because of some bug in the code framework. In order to overcome
such scenario the organizations responsible for developing the ERP system provide “
post go live support (PGLS) to the personal at FMCG sector “ the period of the PGLS is
mostly two weeks where entire bugs reported by the users need to be fixed however
depending upon the stability of the system and the PGLS phase may be extended until
and unless the system dynamics are achieved.
 Once the ode is live in the systems of FMCG industry they need to consolidate
the information’s from the different source. Since the business across the globe hence
the major problem associated with data consolidation is the data Integration. In order
to overcome this an FMCG sector might take a call to divide the project into different
sections where on go live is followed by another with certain modification to basic ERP
frame work based on the requirements of the individual region.
Conclusion: Once the project is live in the system the company will sign in the final
documents where the terms and clause of the project will be mentioned and
depending upon the contract type, they will pay the final amount of money to the party
responsible for developing the ERP system.
Risk Management Process:

The Risk management process is carried out by the core team of the organization this is
done to avoid any unforeseen circumstances that might disturb the dynamics of the
project. The risk management process follows following stages risk Identification, risk
assessment, risk pyritization and mitigate risk.

We made an attempt to classify risk in four main areas of the organization they are
technical, schedule, operational, business and organizational.

Technical risks: These will arise due to selection of technology such as hardware and
software compliances associate, quality, reliability and security problems.

Schedule risks: They will impact by hampering the program to achieve its goals and
objective within the scheduled time.

Operational risks: These risks will arise because of degrees of uncertainty associated
with the implementation costs mostly due to ‘scope-creep’ thereby impacting the time
and cost of the project.

Business risks: These are associated with change in economic or other conditions
outside the direct control of the project which has an ability to impact the project in an
negatively manner.

Apart for the risks listed above there can be other risks associated with the project such
as legal issues, marketplace changes, government regulations, user skills, political
considerations and customer stability. Organisational risks may prevent completion of
the project with scheduled resources thereby yielding poor ROI. Additionally, these
risks were also given one of four levels – programme management, external
engagement, in line with the incumbent reporting structure, work stream and work
package level. External environment risks are associated with those activities which
involve client-based concerns hereby requiring customer actions to help mitigate.
Programme management level risks have potential impact on several work such as
potential impact on completion or success as a whole, timing, significant release
milestones these are risks that cannot be fully identified at the initial level. Some risks
are associated with work packages within the same work stream these require help of
the work package managers to mitigate such risks. Work package level risks have
domestic impact within a work package and could impact on the completion date,
quality levels or costs of the work package.

The table below presents the Risk analysis Framework associated with ERP
implementation at FMCG sector.

Risk analysis framework for ERP implementation

Levels
Program
External me
Environme Managem Work Work
Category nt ent Stream Package
Project end Insufficien Poor Not
user fails t training Server meeting
to support facility Processin IT
Technical deploymen available. g Power. Specificat
(T) t. (T1) (T3) (T7) ion. (T11)
System
chances Inapprop Data
impact Failed riate cleansing
older knowledg system improper
interfaces. e transfer. Testing. ly done.
(T2) (T4) (T8) (T12)
Improper
alignment Insufficie
of nt
IT Database
Infrastruct Capacity.
ure. (T5) (T9)
Job profile Delay in
and role hardware
mismatch. procurem
(T6) ent. (T10)
Late Organizati New
Schedule Signing off. on fails to system
(S) (S1) accept failing to
 changes. reconcile
(S3) informati
on. (S4)
System
required
changes
which
delays Scoop
project. Creep.
(S2) (S5)
Communic Failing to
ation risk deliver
between the System
Business benefit as failing
and mentione post
Operation organizatio d in BRD. Go live.
al (O) n. (O1) (O2) (O5)
Inadequat
e training
provided.
(O3)
System
failing to
comply
with
data
processin
g norm.
(O4)
Lack of
Risk that resources
project available
may be to cope
Cancelled with
Business at later changes.
(B) stage. (B1) (B4)
Change Possible
manageme of a
 nt. (B2) critical
resource
leaving
and no
back up
available.
(B5)
Business
lacking
ability to
respond to
changes.
(B3)
Other
parallel
with the
project
might
hamper
the
performan Project Low
ce team project
of ERP members team
Organizati project. leave. Turnover
onal (Os) (OS1) (OS2) . (OS3)

CLF and CIF Calculation:

Technical (T) Likelihood(L) Impact (I) Weightage (W)

T1 0.08 0.017 0.1049
T2 0.23 0.034 0.7748
T3 0.1 0.021 0.002
T4 0.05 0.014 0.006
T5 0.2 0.03 0.002
T6 0.65 0.05 0.004
T7 0.04 0.011 0.006
T8 0.15 0.028 0.0121
T9 0.12 0.025 0.0724
T10 0.35 0.04 0.003
T11 0.5 0.56 0.009
T12 0.23 0.9 0.0038

CLF 0.207263
CIF 0.0393073

Schedule (S) Likelihood(L) Impact (I) Weightage (W)

S1 0.5 0.1 0.107

S2 0.55 0.35 0.883

S3 0.25 0.21 0.002

S4 0.04 0.08 0.006

S5 0.1 0.04 0.002

CLF 0.54009

CIF 0.32073
Operational (O) Likelihood(L) Impact (I) Weightage (W)
O1 0.63 0.4 0.2035
O2 0.76 0.5 0.3261
O3 ` 0.12 0.0442
O4 0.4 0.36 0.1649
O5 0.65 0.42 0.2612

CLF 0.616201
CIF 0.418822

Business (B) Likelihood(L) Impact (I) Weightage (W)

B1 0.4 0.17 0.038
B2 0.8 0.48 0.473
B3 0.55 0.3 0.134
B4 0.68 0.39 0.248
B5 0.48 0.26 0.107
CLF 0.6873
CIF 0.39824

Organization Likelihood( Weightag

al (Os) L) Impact (I) e (W)

OS1 0.18 0.4 0.321

OS2 0.6 0.18 0.629

OS3 0.42 0.24 0.05

CLF 0.45618
 CIF 0.25362
Composite Composit
Description Likelihood e Impact Quantitativ
of project Factor Factor e Qualitativ
risk(activity) (CLF) (CIF) (CLF * CIF) e
Technical (T) 0.207263 0.393073 8.15% LOW
Schedule (S) 0.54009 0.32073 17.32% LOW
Operational
(O) 0.616201 0.418822 25.81% HIGH
Business (B) 0.6873 0.39824 27.37% HIGH
Organization
al (Os) 0.45618 0.25362 11.57% LOW

RACI MATRIX:

The responsibility matrix shows that during the implementation of projects what are
the functions that are performed by the various stakeholders of the project.
Responsibility represents people who are responsible for completing the task.
Accountable denotes people who are making decisions and are responsible for
completing the tasks consult represents those group of people who will be
communicated the information and decisions taken, and informed represents who
need to be updated during the progress of the project.

It tells the organization about work load on its various resources as it shows what role
are assigned to each person. For example, the organization can see if someone has
been placed in the responsible/accountable/consult or informed role too many times
or not indicating that specific resource has been assigned too many tasks or they do
not have much of dependency thereby enabling the organization knows whether
someone has too many or could loaded with too many responsibilities.

Use RACI also indicates how various stakeholders associated with the project are
impacted in loop. RACI also helps in reducing miscommunication and increasing
productivity. So, if a task was improperly completed, RACI tells you who was involved
and ultimately accountable.

In order to prepare RACI matrix, we have considered the contribution of various

stakeholder towards the different tasks assigned to the team. The various tasks
considered here are document process, issue of REP for ERP system, selection of ERP
system, prepare Infrastructure, issue of REP for ERP implementer, select ERP
implementer , select project environment, prepare business blue print, configure and
customize, prepare and migrate data ,train and test, perform quality assurance, cutover
& go live and Support user. These tasks are assigned to various stakeholders as
discussed in the charter.

Resource Planning:

We have considered resources from the flowing teams It Department, Project Team,
Organization, Vendor, ERP consultant, Testing team and business -process expert.
Vendor is a third part to the project. The vendor is responsible for providing the ERP
package which is required by the client. The IT department present at the client end is
responsible for syncing the code from the team responsible for developing the project
to their server. The ERP consultant and testing team are responsible for developing the
entire the ERP frame work and testing team is responsible for testing and running the
entire module so that there are theoretically no glitches in the production system
during the actual code run. The Business process experts (Technical architects)
comprises of those people who expertise in the technology used and they are
responsible for furnishing valuable inputs during the project run. The table below
shows the resource allocation and budgeting schedule for the project run. The resource
levelling chart for the same have been attached at the back of the report.

Assumptions and Constraints:

 Availability of all business process owners and users completing assigned project
tasks
 Solicit technical resources from within the university as and when possible
 No new major hardware will be required to install the designated ERP system
 Training and other encouragements will be provided to project teams users to
enhance their capabilities and level of inspiration
 Quality is first priority through project should be completed in 2 years with
minimum cost
 ERP system offering best value for users will be selected though it could be
costly and may require technical compromises.
 The data considered here are hypothetical as the actual industrial data was not
available.
  The actual san of the project was 24 months however we have scaled it down to
level of 24 days so as to make calculations easy.
 The project life cycle stages considered here are considered after referring to
various published research papers, in real life these scenarios may vary depending
upon the organization and complexity of the project.

LIMITATION OF PROJECT:

 Actual industrial rates charged for such projects were not available hence we have
considered hypothetical data in that case.
 The impact and severity of the risk has been found by hypothetical data, in real life a
survey

6. EARNED VALUE ANALYSIS:

Earned Value Analysis is used to measure a project’s progress at any given point of time
by forecasting its completion date, final cost and analyzing schedule and budget
variances.
In this we have taken the below mentioned 6 variables:
g. Cost variance: The variation in the actual cost incurred than the value earned at a
certain point of project time
h. Schedule variance: The variance in the earned value as compared to the planned
value estimated at the beginning of the project.
i. Cost Performance Index: A ratio of how much value the project holds with the cost
incurred at the point of time taken (in this case, 67%).
j. Scheduled Performance Index: A ratio that tells us how far ahead or how much are
we lacking in terms of value earned at the time reference and planned value.
k. Estimate to Completion: It gives you an estimate of the remaining cost to reach the
project completion despite of any delay that might have happened.
l. Estimate at Completion: It gives the total cost that we will incur including all the
delays during the project time.
PARAMETER FIGURES
Actual cost ₹ 11,54,880.00
Estimate cost ₹ 12,00,000.00
Work completed 67%
Cost Variance (EV - AC) ₹ -3,55,680.00
Schedule Variance (EV - PV) ₹ -4,00,000.00
Cost Performance Index (EV / AC) 69%
SCHEDULED PERFORMANCE INDEX (EV / PV) 68%
ESRIMATE TO COMPLETION ((BAC - EV) / CPI) ₹ 5,79,710.00
ESTIMATE AT COMPLETION (ETC + AC) ₹ 17,34,590.15
 TASK USAGE -
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ERP at FMCG Page 2

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ERP at Page 3
FMCG
 RESOURCE LEVELLING
 1n 5ep·19 30 Sep '19
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 GANTT CHART
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 RESOURCE COST REPORT
 RESOURCE COST OVERVIEW
 NETWORK DIAGRAM
Pre pare business blue print
Prepare and migrate data a.itover & go live _
Start: Wed 18-09-lSJO: 9
Start : Wed 02-10-l SJO: 11 Start Mon 07-l CH SJD: U
Finish: TUe 24-09-19 ou r: 4
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days
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Res : ve ndor(1 09(,J, Project Team

Sl.lpport user
Sta rt : Tue 08-10-19 JD: 15
Fin ish: Thu 10-10-19 Dur: 3 days
Res: Pro ject Team

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REFERENCES

1. https://www.researchgate.net/publication/273575189_Analysis_of_the_Critical_Success_
Factors_for_Enterprise_Resource_Planning_Implementation_from_Stakeholders%27_Pers
pective_A_Systematic_Review?enrichId=rgreq-b55714affeedb480d2b7506b3b06cdaf-
XXX&enrichSource=Y292ZXJQYWdlOzI3MzU3NTE4OTtBUzoyMDczNzU0Mzc5NjMyNjRAMT
QyNjQ1MzU2NTkzOQ%3D%3D&el=1_x_3&_esc=publicationCoverPdf
2. https://pdfs.semanticscholar.org/2487/66319a230dfe6093444d5bca4896fe69875b.pdf
3. https://www.semanticscholar.org/paper/ERP-SYSTEM-IMPLEMENTATION-IN-FMCG-
SECTOR-Mishra-Alok/a62ff54e21fca56993d5d49ae501b94fa9e128b7
4. https://www.scribd.com/doc/77560133/Dabur-ERP
5. https://www.essindia.com/erp-fmcg
6. https://www.ebizframe.com/erp-fmcg/