WK 6 - Consulting Project, Part 3 - Final Nine West SAP Project (3)

Running head: CONSULTING PROJECT, PART 3: FINAL PROJECT1

Consulting Project, Part 3: Final Nine West SAP Project

Matthew Hallowell / Sr. Consultant

MGT/598

June 20TH, 2016

Rachelle Disbennett-Lee / Consultant Supervisor

CONSULTING PROJECT, PART 3: FINAL PROJECT 2

Consulting Project, Part 3: Final Nine West SAP Project

Introduction

This paper will outline the complete Nine West SAP Project, it will also combine with

the work, information, or data collected and presented in weeks two and three, furthering project

development. The NW SAP Project will be a complete operating systems upgrade for a major

wholesale fashion brand that does business and has operations internationally, around the world.

Within the fashion industry, SAP, as a full-service operating system, has become the

industry standard. SAP can manage the exchange of big data inputs through same day electronic

data transfers for all customer orders or order changes, manage inventory on a live basis for

superior accuracy, and better manage customer change requests to mitigate future chargebacks.

SAP will have new data auto-filters in the system, running all this customer order data through

each functional area of business, starting with order processing, compliance, allocation,

fulfillment, picking, packing, and shipment, to than billing or collections for payment. All order

files generate in the new system after order processing and compliance are complete. Shipping

files now attach to the order as it moves through the Warehouse Management Processes or WM

system. Once shipped complete, the order data is auto-sent to different operating departments for

processing.

Table of Contents

Table of Contents Page Number Introduction 2Table of Contents 2Company Background 3Project Proposal 4STEEPE Analysis & Balanced Scorecard 6 - 11Project Plan 11 - .16Allocated Budget 16 - 18Key Factors: Objectives 18


Functional Tactics 18Action Items 18 - 19Milestones 19 - 20Tasks 20Resource Allocation 20 - 21Success Factors 21Implementation 22Communication Plan 23Evaluation Plan 23Project Effectiveness 23 - 24Conclusion 24

Nine West Company Background

Nine West is a leading manufacturer and wholesaler of women’s fashion products that

include a brand portfolio in the US, as well as an international brand portfolio that includes the

design of new women’s fashion products seasonally, the brand releases: new shoes, clothing, and

accessories, like designer handbags and jewelry. Nine West has an in-house design team

managed and directed by the company’s head designer. This design team needs constant access

to all product info, past to present, to identify trends and design new fashion products around

these trends, which also includes seasonal trends, and the design of seasonal fashion product

lines.

The CEO of NW has received several complaints from top key accounts about the

company’s now outdated operating system. Loyal customers are threatening to leave if the

system upgrade to the new industry standard of SAP is not accomplished. The current system is

causing large, loyal, wholesale customers more work to enter NW orders that are to be EDI’d

over to NW, as well as managing order changes with customers to ensure the data matches on

both sides, thus mitigating chargebacks for order error. SAP will resolve all of these issues.

The current system NW operates off of is DOS based and does link to WM or the

Warehouse Management System but it does not auto-generate reports, and products are moved


manually through the WM system with no operational connection. The link that exists is a

viewable link only, which allows for the search and tracking of orders with the Warehouse or

WM System by the order number. The system is always a day behind as EDI’s can only be

received by the system overnight for that current day, so any order changes causes a delay in

processing time and, thus, backlogs order changes and causes an increase in chargebacks.

Project Proposal

The main purpose of the project proposal for the NW SAP Project is to develop “a

statement of work” since this project is technical based that outlines the work necessary, who is

involved as project participants, and why the work is needed. (Phillips, J., 2015)

Project ProposalProject Participants (In order of priority) Involvement SAP Consultant CommentsExecutive Management X Client / Project SponsorFinance X Support Staff / Budget / Payments Human Resources X Support Staff / Employee Management IT Department X Support Staff / Systems ManagementSAP Consulting Team X Ext. Team / 6 Members / $100 PER HRNine West Management: Upper X Project Participant / Data Source / End UserMiddle X Project Participant / Data Source / End UserLower X Project Participant / Data Source / End UserEmployees: Sr. Employees X Project Participant / Data Source / End UserGeneral Employees (All Levels) X Project Participant / Data Source / End UserSales X Project Participant / Data Source / End UserCustomer Service X Project Participant / Data Source / End UserDistribution Center, or DC: X WM System X Existing System / Need to link into or tie into with SAPWM Processes X Project Participant / Data Source / End User

SAP System Purchase X The new SAP System with enhancements for BW & WM Systems


BW Reporting System Development X New data base to house order & financial data for reporting SAP Implementation X New SAP system implementation for every department

These are the key project participants or current systems included in the NW SAP

Project. It is key to note here that the client needs SAP to tie into a reporting based system that is

called BW Reporting as well as the brands current WM System or Warehouse Management

System and processes. The upgrade will allow system end users to track in real time, by order

number, where any order is down at the Distribution Center, or DC, the stage of shipment it is in

from: received, sorted, picked, packed, to loaded, and shipped. Changes can be made to the order

through the WM system, an extension of SAP, while in received and sorted status. The system

gives allocation time for error in case an order needs revision or dropped to the DC before the

inventory completed pick and pack for the drop order.

The new operating system project or upgrade to SAP for NW is needed for the company

to remain competitive in their markets, relevant with consumers, and current with fashion trends,

meeting industry standards, and retaining customers, while also being able to process large

amounts of data via, EDI input, or electronic data transfer. SAP allows for quicker, more

accurate, and more efficient order processing, that is totally paperless and can better handle order

change management.

STEEPLE Analysis

The STEEPLE Analysis reviews different macro-environmental external factors within

the project such as:

S = SOCIAL

T = TECHNOLOGICAL

E = ECONOMIC


E = ENVIRONMENTAL

P = POLITICAL

L = LEGAL

E = ETHICAL

= STEEPLE ANALYSIS

SOCIAL

• CUSTOMER DEMOGRAPHICS

• FASHION TRENDS

• SOCIAL MEDIA

• MARKET TRENDS

• FASHION CULTURE

• COMPETING BRANDS

• INDUSTRY STANDARDS

• WHOLESALE CUSTOMER EXPECTATIONS

These are all external social factors that are the first component in the STEEPLE Analysis for

the Nine West SAP Project. Social factors are never constant and can help a business change

over time or develop advanced marketing strategies that work to improve products and the sales

process. For the Nine West Project, these social factors have influenced the need and demand for

an improved operating system. (Performance Consulting, 2008)

TECHNOLOGICAL

• EXCHANGE OF BIG DATA AND INFORMATION

• EDI ADVANCEMENTS

• NEW TECHNOLOGICAL ADVANCEMENTS

• NEW IT PROCESSES

• NEW MOBILE COMMERCE ADVANCEMENTS

• PAPERLESS CUSTOMER ORDER PROCESSING

• NEW INDUSTRY DEVELOPMENT

• NEW PROCESSES AND PROCEDURES


These are all the external technological factors that are the second component in the

STEEPLE Analysis for the Nine West SAP Project. Technological factors link to the processing

power of the organization, along with industry standards that develop the need or demand for

technological change. For the Nine West SAP Project, the new operating system will improve

the accuracy of the data or information transmitted, improve order turn around, and processing

time, as well as better manage system changes that work to improve brand performance or

operations. (Phillips, J., 2015)

ECONOMIC

• INCREASED PRODUCTION COSTS

• UNEMPLOYMENT LEVELS

• ECONOMIC STANDING: GROWTH OR DECLINE

• SHIPPING COSTS

• LABOR COSTS

• INDUSTRY OPERATING SYSTEM COSTS

• PRODUCT DEVELOPMENT COSTS

• BRAND CONSUMER CONFIDENCE

These are all the external economic factors that are the third component in the analysis for

the Nine West SAP Project. Economic factors can influence change in business operations.

Sometimes these changes are positive or negative. However, the Nine West SAP Project, while

being a huge initial cost, should help the brand improve efficiency in operations and output that

will cut costs while improving the bottom line. (Performance Consulting, 2008)

ENVIRONMENTAL

• CLEAN ECO-FRIENDLY BUSINESS OPERATIONS

• THE LOCAL ENVIRONMENTS IN WHICH THE BRAND OPERATES

• THE BRAND'S CARBON FOOT-PRINT

• NATURAL RESOURCE CONSERVATION

• SOCIAL-ENVIRONMENTAL BRAND CAMPAIGNS


• ENVIRONMENTAL AWARENESS

• INDUSTRY IMPACTS ON THE ENVIRONMENT

• PAPERLESS CUSTOMER ORDER PROCESSING AND NINE WEST SHOES FOR SOUL’S

CAMPAIGN

These are all the external environmental factors that are the fourth component in the analysis

for the Nine West SAP Project. The Shoes for Soul’s Campaign began as a social-reform

campaign that rewarded those in need with a free pair of shoes when any customer would bring

an old, worn, pair of shoes to a Nine West store to be recycled. The customer would get half off

for each drop off date on a new pair of shoes and, once bought, Nine West would ship a free pair

of shoes for those in need. Environmental factor projections show vast improvement with the

Nine West SAP Project. The brand will be able to develop paperless order processing processes

that save on printing and overall paper use. (Phillips, J., 2015)

POLITICAL AND LEGAL

• LAWS AND REGULATIONS OF REGIONAL BRAND LOCATIONS

• FASHION INDUSTRY RULES AND REGULATIONS

• SALES TAX OF REGIONAL BRAND LOCATIONS

• CORPORATE OR BUSINESS TAXES

• RELEASING FINANCIAL STATEMENTS

• COMPLIANCE WITH INTERNATIONAL SHIPPING AND LOGISTICS

• SECURE TRADE ROUTES

• IMPORT OR EXPORT TAXES

These are all the external political and legal factors that are the fifth and six components in

the STEEPLE Analysis for the Nine West SAP Project. Political and legal factors of the analysis

are very important, as all businesses must follow the law of the lands in which they operate.

Managers need to be aware that the company is following all laws and regulations, regardless of

location. The business must ensure compliance with any rule or regulation that applies to the


industry or company operations, or even executive management. (Performance Consulting,

2008)

ETHICAL

• GOOD BUSINESS PRACTICES

• CULTURE

• ACCURATE FINANCIAL REPORTING

• ETHICAL VALUES BY REGION OR LOCATION

• COMMUNITY GOALS

• INDUSTRY ETHICAL CODES OR STANDARDS

• CUSTOMER VAULES

• BUSINESS PARTNERS’ CULTURE AND VALUES

These are all the external ethical factors that are the last and seventh component in the

analysis for the Nine West SAP Project. These ethical factors hinge on what is morally right and

should promote good or better business practices within the fashion industry. The Nine West

SAP Project will allow employees in key departments to better meet ethical obligations in

business, like accurate financial reporting, which is key for a publicly held company with

investors and shareholders. What is right influences on business practices that improve ethical

standards. (Phillips, J., 2015)

Balanced Scorecard

The Balanced scorecard has four categories of data metrics that are project specific and

developed by the project team to measure the performance of a project, or against the client’s

organization for use by their executive management team. For the NW SAP Project, the balanced

scorecard will assess data in four key metrics for evaluation, one process, two operational, three

financial, and fourth growth. These four metrics will give the NW Executive Management Team

the ability to analyze the project, its progress through to implementation, and even project close.


The consulting team can generate reports for the Executive Management team using these four

metrics as a basis for their analysis. (Kaplan, R. S., & Norton, D. P., 2001)

ONE - PROCESS:

• NEW SAP PROCESSES

• NEW CUSTOMER ORDER PROCESS

• NEW SYSTEM

• UPGRADED TECHNOLOGY

• NEW USER SAP SKILLS

TWO - OPERATIONAL:

• PRODUCT QUALITY

• IMPROVED ORGANIZATIONAL OUTPUT

• IMPROVED QUALITY OF SERVICE

• PRODUCTION

• IMPROVED PRODUCTIVTY

THREE - FINANCIAL:

• DECREASING EXPENSES

• NEW AREAS OF REVENUE

• IMPROVING BRAND PROFITABLITY

• RESOURCE EFFICIENY

• CREATING IMPROVED CUSTOMER VALUE

FOUR - GROWTH:

• EXPANDED OPERATIONS

• NEW MARKETS

• NEW PRODUCTS

• NEW SERVICES

• INCREASED PRODUCTION

Project Plan

Project objectives developed based on five different levels. One, reaction, how will the

client and stakeholders involved with the project react to the project results. Two, learning,


developing training programs for the project stakeholders or end users involved. Three,

application and implementation, the best implementation plan that includes performance metrics

for measuring project success. Four, impact, what business changes will occur because of the

project. And level five, return on investment or ROI, determining the monetary value of project

benefits to the business as compared to project expenses. (Phillips, J., 2015) For the Nine West

SAP Project the objectives will be:

Level One Reaction:

IT Department, facing new processes around receiving new data transfers

Customer Service Department, facing new order processing processes

Managers need to be positive and support the project

Wholesale Customers will remain loyal to Nine West

These four reaction objectives will occur because of implementing the new SAP system, but

the main objective of this project will be to improve customer service. As the company is being

threatened by some of its largest wholesale customers, the potential to lose a great deal of sales

and loyal customers are a major threat should the systems upgrade not take place following

industry standards to SAP. (Markham, C., 2005)

Level Two Learning:

IT Training Program

Customer Service Training Program

Operations Training Program

SAP Screens and Step by Step Navigation

These four learning objectives will cover the key departments on new SAP system training

that is role specific. Generally, an operations program should be developed that will include all


the departments that make up the total business function to understand how customer data needs

to be entered and setup in the system to receive big data transfers. Following that, SAP needs to

be able to reassemble that transmitted data into a customer order that the customer service team

can process. For role specific training, and even for departmental managers pulling data to

compile reports, end users must be familiar with SAP screens and understand systematic

navigation, as they need it operating in the new system. It is essential that all functional

departmental managers are involved with the project implementation, but also with the

development of role specific training needed for departmental employees. (Chitakornkijsil, P.,

2011)

Level Three Application and Implementation:

Create an implementation timeline for functional departmental upgrades

Review each departmental implementation for system change management

Reporting metrics for management to pull key data points

Compare current performance rates using SAP to prior yearly performance data rates to

measure areas of improvement

Through application and implementation, a timeline should be created that will outline what

department will start the upgrade through the last department to be upgraded. The first

department upgraded should be Human Resources as they have the least effect on the total

business output. After each departmental implementation or upgrade, the departmental manager

should work with the consultant to review any system changes necessary to improve role specific

performance. A separate reporting system developed for all levels of management to pull key

data points of their choosing out of SAP to evaluate system performance and improve

departmental performance. Old system data will be stored on SAP so departmental managers and


sales can pull previous yearly data to determine where and how improvements are taking place in

the new system. (Markham, C., 2005)

Level Four Impact:

Improve operations

Improve data exchange and transfers

Improve order processing time

Improve order quality through enhanced management of change

Impact objectives are critical to understanding how the project is going to impact key

business operations or functional areas of business and what improvements are going to occur as

a result. With a customer service focus as the main objective, the main impact of the new system

is to improve performance within the customer order data received and processed into an order.

Also with the SAP upgrade, the whole company, or total business output, will improve as the

company is upgrading its ability to exchange information or order data with business partners

and customers to improve data exchange transfers. The upgrade allows the company to pull new

data transfers twice daily to not only capture all orders, but also better manage customer order

changes for improved order accuracy. (Chitakornkijsil, P., 2011)

Level Five ROI:

Assigning a monetary value for project benefits

Recover all project expenses through improved efficiency and effectiveness with data

Reducing chargeback by fifty percent

Improving order turn around by fifty percent

A return on investment or ROI is crucial in determining project benefits for the client

equaling monetary value to understand the full benefit of the systems upgrade. All project


expenses based on how Nine West can now handle data transfers for more efficient and effective

data exchange between business partners, and customers. Through building the new SAP process

for the customer service department, company chargeback expected reduction is fifty percent,

saving Nine West a lot of money by better managing order changes with customers. With an

improved order turnaround time, customer service is able to process orders fifty percent quicker,

which means they can process orders more quickly, efficiently, and effectively, while following

a change management process. The new change management process must ensure any order

changes made on the Nine West side also reach the customer’s side, and the order is re-

transmitted so all the data matches, mitigating future chargebacks by fifty percent from all

wholesale customers. (Performance Consulting: A Practical Guide for HR and Learning

Professionals, 2008)

V Model

Using the V Model, the Nine West SAP project objectives link to the project result, the

systems upgrade. The upgrade basis starts based on several criteria. Pay off needs linking with

ROI objectives, business needs with impact objectives, performance needs with application

objectives, learning needs with actual learning objectives, and performance needs with reaction.

The list creates a V Model containing all the project benefits from the initial start through to

project completion that include measurement metrics for tracking the project and ensuring the

project is meeting all project objectives. The V Model links these objectives together to create an

outline for the project from start to finish, objective by objective. (Phillips, J., 2015)

Project Goals

For the Nine West SAP Project, the main goals for project success are to:


Development a implementation timeline for company departments or functional areas of

business

Provide better customer service to loyal wholesale customers with the systems upgrade to

SAP

Improve how Nine West can handle data transfers

Improve order turnaround time and order quality through change management, mitigating

future wholesale customer chargebacks

The goals for the project are clear and simple but will ensure Nine West does not lose any

business as a result, or any loyal customers. The main goal is to improve customer service

standards and create new policies on customer change order management. (Kaplan, R. S., &

Norton, D. P., 2001)

Project Needs

The needs of the project are going to be the initial cost of the complete systems upgrade

to SAP. As well as the development of training programs for key departments or functional areas

of business that adequately train all employees on the new system. The screens they will need to

know to complete their daily roles, along with the step-by-step navigation through the new

system. (Phillips, J., 2015)

Project Timeline

NINE WEST SAP PROJECT TIMELINE

PLANNING EXECUTION IMPLEMENTATION PROJECT CLOSE

PROJECT FOLLOW-UP (Standard / After

Project Close)

8 Weeks 4 Weeks 8 Weeks 2 Weeks 1ST - 4 Weeks

2ND - 8 Weeks / (4 Weeks)

3RD - 12 Weeks / (4 Weeks) SAP Consultants

Total NW SAP Project Length = 22

+ Follow-Up Total = 12 Weeks

= Total Project Working Time = 34 Weeks


Weeks

Allocated Budget

An allocated budget will finalize project costs into a complete budget and, in some

cases, use a mix of budgetary processes to develop refined project costs like a fixed budget,

reporting all costs that will not change with the amount of work completed throughout the

project, costs like facilities, support staff, and overhead. The Variable budget reports costs

directly related to the project such as project output, number of participants involved,

materials, travel, and consultant team members, are all variable costs. This budget

developed uses costs based on a flat fee per head count on the project team. (Phillips, J.,

2015)

Allocated Budget: NW SAP PROJECT Variable Costs: Project Specific US DOLLARS SAP CONSULTANT NOTES Project Team - 6 / $100 PER HR N/ALabor Worked: Total HRS & COST N/A N/ATotal Hours - 880 HRS / 22 WEEKS NO OVERTIME NEEDED Total Cost - $528,000.00 ACTUAL COSTSOn-Site / Travel $528,000.00 ACTUAL COSTSSAP System Cost: $1,000,000.00 SYSTEM PURCHASESystem Enhancements - $400,000.00 LINK TO WM & BW SYSTEMSSystem Development / BW Reporting - $600,000.00 CREATE BW REPORTING SYSTEMTraining Program / Materials $200,000.00 USEDProject Materials $200,000.00 USEDTotal Project Costs for 22 Weeks = $3,456,000.00 ACTUAL PROJECT COSTS Billable $3,456,000.00 BALANCE Contingency Fund: PRE-PAID BILLED AT START20% Total Project Cost = $691,200.00 USED – DEDUCTED FROM BALANCE Project Follow-Up: 12 Weeks N/A NO ISSUES FOUNDProject Team - 6 / $100 PER HR N/A1ST - 4 Weeks / 160 HRS $96,000.00 COMPLETED 2ND - 4 Weeks / 160 HRS $96,000.00 COMPLETED 3RD - 4 Weeks / 160 HRS $96,000.00 COMPLETED 12 Weeks Total / 480 HRS Total = $288,000.00 ACTUAL COSTS Billable $288,000.00 BALANCE Total Project Costs + Follow-Up Costs = $3,744,000.00 ACTUAL COSTSContingency Fund (-$691,200.00) = $3,052,800.00 BALANCE


Total Billable Costs - $3,052,800.00 BALANCE DUE NOW Fixed Costs: NINE WEST Specific. Totals Per Month NINE WEST COST BREAKDOWNNINE WEST Departmental Salaries: N/A N/AHuman Resources $600,000.00 SUPPORT STAFFFinance $5,000,000.00 SUPPORT STAFFIT Department $1,000,000.00 SUPPORT STAFFEmployees (All Departments) $7,600,000.00 PARTICIPANTRetail Divisional Costs $1,000,000.00 PARTICIPANTAdministrative Costs $500,000.00 SUPPORTUtilities: Phone / Internet / Email / Electricity / Other = $400,000.00 SUPPORT

Total Fixed Costs Per Month = $16,100,000.00 TOTAL NINE WEST OPERATING COSTS PER MONTH

Costs by Project Phase: PROJECT PHASE COST BREAKDOWNPlanning Costs = $1,056,000.00 PROJECT TEAM + ON-SITE / TRAVLE

Execution Costs = $400,000.00 TRAINING PROGRAM / MATERIALS + PROJECT MATERIALS

Implementation Costs = $2,528,000.00 PROJECT TEAM + SAP SYSTEM + ENHANCEMENTS + DEVELOPMENT

Project Close Costs = $3,744,000.00TOTAL PROJECT + TOTAL PROJECT FOLLOW-UP

Follow-Up Costs = $288,000.00 TOTAL PROJECT FOLLOW-UP Added Value:

Improved Order Turn-Around Time By 50%IMPROVED FROM 15% AT PROJECT START

Decrease in Chargebacks By 80%

DECREASED IN CHAREBACKS BY 80% SINCE PROJECT START TO JUST 10% AT PROJECT CLOSE. PRIOR YEAR PERCENTAGE OF CHAREBACKS WAS AT AN ALL TIME HIGH OF 90% OF ALL ORDERS WERE BEING CHARGED BACK DUE TO ERRORS.

EDI Transfer Fee $0.05 per incoming EDI Transfer$500,000.00 by project close, $1,000,000.00 per year projected.

CREATED A NEW AREA OF REVENUE FOR NINE WEST. INCOMMING EDI TRANSFERS COST CUSTOMERS A FEE OF $0.05 MAKING $500,000 BY PROJECT CLOSE AND $1,000,000.00 PER YEAR OF PROJECTED REVENUE.

(Smith, W. W., Litvin, S. W., & Canberg, A., 2010)

Key Factors for the NW SAP Project

o Objectives

Purchase and customize SAP for NW use

Determine system needs from system wants

Outline system parameters with NW daily business functions

Implement the new system company wide, by department


Train all employees, including management on SAP use

Further develop and train all end users on the BW Reporting System,

along with how info or data is pulled out of SAP for report creation

o Functional Tactics

System enhancements

System features

SAP navigation

Improve order processing

Improve big data transfers to twice daily

Improve the quality and quantity of data being transmitted via EDI

o Action Items / In order of Priority

Work with IT to purchase the new system, and begin installation

Involve all functional areas of business as project participants

Work with HR and IT to create a training program for all employees

and management

Work with departmental management to create an implementation

schedule for the systems upgrade

Select a go live date for the implementation sequence to begin

Select a grace period for all employees that starts after the go live date

and allows employees to make mistakes in a grace period, designed for

learning and training development with use of the new system

o Milestones

NW SAP Project Total is 22 Weeks + 12 Weeks of Follow-up


Planning / Project Start

o 8 Weeks

Execution / Research and Development

o 4 Weeks

Implementation / Training

o 8 Weeks

Project Close

o 2 Weeks

Project Follow-up / After Project Close

o 1ST - 4 Weeks

o 2ND - 8 Weeks

o 3RD - 12 Weeks

o Every four weeks, for three months, after project close

o Tasks

TASKS for the NW SAP PROJECT

P = PLANNING

E = EXECUTION I = IMPLEMENTATION

C = CLOSE PROJECT

F = FOLLOW-UP

Nine Wes Executive

Management FinanceHuman

ResourcesIT, or Information

TechnologyDepartmental Management Employees

Ext. SAPConsultants

P P P P P P

E E E E E E E

I I I I I I

C C C C C C

F F F F F F F

o Resource Allocation


Resource allocation is going to be a critical continuous process throughout all

phases of the project lifecycle. Considering this, one of the client’s most senior

departments should manage resources, and that is Finance. The Finance Director will be

the manager responsible for all aspects of the budget, and any additional expenses must

be submitted to the Finance Department or Team for further review.

Please note, if additional expenses should be requested, it will be made by the Sr.

Project Consultant and will be submitted to Finance with a full explanation for the

additional expense and it will be at the discretion of the Finance Director to approve or

deny any or all additional expenses. Additional expenses can be denied without reason or

further explanation of why the expense was denied. (White. L.N., 2007)

Lastly, as part of the Resource Allocation with a systems project, system changes

or enhancement changes must be monitored, logged, and tracked. All system changes go

through the Sr. Project Consultant who will review the change request, if approved,

forward the change request to the IT Department for cost analysis. Once cost estimation

is completed, return to the Sr. Project Consultant who has the discretion to deny the

change or approve the change further, and submit all the change request info to Finance

for a final approval or denial.

Success Factors

Improved order turn-around time by fifty percent, it was fifteen percent at project start.

Based on project evaluation and follow-up data this figure should continue to rise over

time as more orders complete through the system.


Decrease in Chargebacks by eighty percent, it was at an all time high for Nine West at

project start, ninety percent of all orders were being charged back for errors that

circulated around order changes. Now with the new system there was an eighty percent

decrease in chargebacks due to errors to only ten percent. This when the prior year’s

number was ninety percent of all orders were being charged back.

Increase in revenue for now being able to charge for the new EDI service. All accounts

from major to minor are assessed an EDI fee for transmitting their orders and for having

to transmit order changes of five cents per transfer. This has created a completely new

area of revenue for Nine West that made the company five hundred thousand during the

project lifecycle and by project close. The projection is to be at least one million a year or

more in additional revenue.

(García-Valderrama, T., 2015)

Implementation

Implementation will occur in a controlled sequence and should start in a department that

does not have a real affect on the brands total business output. Implementation of the new SAP

system should begin in the Human Resource Department as their use of the new SAP system is

minimal, and they are not part of the brands total business output. From HR the implementation

should move to credit and collections, but only after all issues have been resolved and any

changes logged and reviewed.

All system change requests collected and logged by the Consultant team after each

department upgrade onto the new system. System changes controlled by the SAP team of


consultants, with no control or cap on system changes, they can get out of control rather quickly.

All aspects of system testing and departmental function should be tested and ready to go live,

before moving the implementation on to the next department. Any issues found or change

requests to the system must be worked out before each department’s implementation file can be

closed out and the consultant team can continue. (White. L.N., 2007)

This project is a controlled implementation that will flow from its start in Human

Resources through each operating department of the brand. All issues must be resolved and all

system changes reviewed, before implementation closes at the department level. The department

must be live, up and running in SAP without issue, before implementation closes and moves onto

the next department.

Communication Plan

Communication Plan

P = PROJECT OPEN / E = EXECUTION / I = IMPLEMENTATION / C = CLOSE PROJECT / F = FOLLOW-UP

Departmental / Teams Reason for Communication Communicatio

n Time LineCommunication Channel Communicator Status

NW Executive Management P, I, C, F Various

Meeting, Email, Phone SAP Con.

COMPLETE

Finance P, E, I, C, F Various Email, Phone SAP Con.COMPLETE

Human Resources P, E, I, C, F Various


COMPLETE

IT Department P, E, I, C, F VariousMeeting, Email, Phone SAP Con.

COMPLETE

Departmental Management P, E, I, C, F

Various

Training, Meeting, Email, Phone SAP Con.

COMPLETE

Employees P, E, I, F Various


COMPLETE

SAP Consultant Team

P, E, I, C, FVarious


COMPLETE

Customer Service P, E, I, F Various


COMPLETE

Warehouse Management P, I, F Various


COMPLETE


*ALL COMMUNCATION WILL FILTER THROUGH THE TEAM OF SAP CONSULTANTS PRIOR TO ANY OTHER PROJECT PARTICPANTS. (Rimando, M., 2015)

Evaluation Plan

NINE WEST SAP

PROJECT EVALUATION SAP CONSULTANT REVIEW = SCR

PLANNING EXECUTION IMPLEMENTATION PROJECT CLOSE

PROJECT FOLLOW-UP (Standard / After

Project Close)

8 Weeks 4 Weeks 8 Weeks 2 Weeks 1ST - 4 Weeks / SCR

SCR – 2 WKS SCR – 2 WKS SCR – 2 WKS SCR – 2 WKS 2ND - 8 Weeks / (4

Weeks) / SCR

SCR – 6 WKS SCR – 2 WKS SCR – 6 WKS SCR – 2 WKS 3RD - 12 Weeks / (4

Weeks) / SCR SAP Consultants

Total NW SAP Project Length = 22

Weeks / SCR + Follow-Up Total = 12

Weeks / SCR= Total Project Working Time = 34 Weeks / SCR

Project's Effectiveness

After Project Survey Answers: Y=YES / N=NO / N/A=NOT APPLICABLE

Name? Department? Prefer new system to old? Do you like SAP? Do you know your role in SAP? Have you customized your T-Codes? Can you do your role quicker? Can you process orders quicker? Did you complete training? Was the training good for you? Was the trainer engaging? Did the training apply to your role? Are you familiar with SAP navigation? Did SAP improve your role? Did SAP improve your time? *ADD. LINE FOR COMMENTS: X

(Ajmal, M. M., Nordström, F., & Helo, P., 2009)

Conclusion


To close, the NW SAP Project fully outlined the entire project from project planning to

project close, and identified several new benefits because of the project completing as a success.

Nine West will generate a new area of revenue growth through the fees assessed for incoming

data transfers, or customer orders, and order changes. In order to be sure the customer has made

the requested change, a retransmission request now ensures the data matches, mitigating future

chargebacks. Over time, this project will pay for itself through the EDI fees NW will now make

as new revenue on new and change transmissions, and the decrease in chargebacks on orders,

improving the quality of order data NW is shipping out.


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Documents

WK 6 - Consulting Project, Part 3 - Final Nine West SAP Project (3)