PROJECT CHARTER

SAP S/4HANA Implementation

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 Project Charter

Table of Contents
1. Overview..........................................................................................................................................3
2. Objective.....................................................................................................................................3
3. Vision and Mission Statement.....................................................................................................3
3.1 Vision Statement......................................................................................................................3
3.2 Mission Statement....................................................................................................................3
4. Project Objectives and Business Drivers..............................................................................3
5. Critical Success Factors...............................................................................................................4
6. Scope............................................................................................................................................4
6.1 Functional Scope......................................................................................................................5
6.2 Technical Scope.......................................................................................................................5
7. Project Organization & Roles......................................................................................................6
8. Change Management.................................................................................................................14
9. Complexity Management...............................................................................................................14
10. Risk Management......................................................................................................................14
11. Project Management Standards and Procedures........................................................................15
11.1 Project Monitoring.................................................................................................................15
11.2 Project Communication.........................................................................................................15
12. Knowledge Transfer and Training Plan.....................................................................................15
13. Project Name and One-line Slogan for the project....................................................................16

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1. Overview
M/s ABC is presently using BUSY Software to manage their operations. The group
wishes to implement a robust ERP to bring its complete operations on one system
and fully utilize the benefits of an ERP.

2. Objective
The objective of this Charter is to agree to the foundation of the project by
documenting the objectives, implementation strategy, project organization, roles, and
the project plans necessary to achieve ABC ’s objectives. Circulation of this Charter
gives direction for the SAP project to proceed. This charter is the first in the series of
versions, which would be developed and circulated, as and when required during the
course of the project.

3. Vision and Mission Statement

3.1 Vision Statement
Achieve increased operational effectiveness and efficiencies in business processes
via an ERP solution.

3.2 Mission Statement

“To setup company hosted, effective Business solution to integrate the islands of
information breaking the barriers among various functional areas and support the
organization to take ‘informed’ decisions based on real time data/information".

4. Project Objectives and Business Drivers

 Create / change Business policies and processes to make them more cost-
effective, customer-oriented, efficient and innovative.

 Create and implement an operational environment which is user friendly and

results in-
o Streamlining data flow
o More effective use of resources
o Support of business growth
o Leverage of administrative costs
o Providing most advanced real time information system.
o Track BOM variances by Standardization of process stages

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5. Critical Success Factors

1. Project Team must be committed with adequate time allocated to the project. Key team
members must be able to dedicate time for discussions as desired. Please refer to 7.
Project Organization and Roles, as a guideline.
2. Scope must be vigorously controlled.
3. Where possible, standard SAP solutions will be sought. The philosophy of "continuous
process improvement" will be adopted post SAP implementation.
4. Business change will be driven by SAP. There may be process changes, resulting from
implementing SAP Best Business Practices.
5. Complexity will be kept low, wherever possible. The project shall be focused on
objectives and outcomes; not on old processes. The aim is always to keep solutions
simple.
6. ABC will be committed to the project's success and will ensure that issues that may
affect progress are resolved promptly and amicably.
7. Standard SAP reports will be utilized wherever possible. ABAP Development of reports
will be kept to the minimum.
8. ABC ’s team members are empowered by the business to arrive at decisions about the
configuration of SAP and how they will use it.
9. SAP implementation methodology and approach will be adopted and managed by both
XYZ and ABC .
10. ABC will ensure the integrity of all data supplied for conversions.
11. ABC will work closely with XYZ in data conversion from current legacy system to SAP
data templates.
12. ABC will adopt a "train-the-trainer" approach where XYZ trains key project personnel.
These key personnel will then perform the task of training ABC staff in the use of SAP

6. Scope
The project scope is defined in two domains:

1. Functional Scope: defined by the business functions proposed for implementation.

2. Technical Scope: defined by the locations within ABC into which it is planned to
implement these functions.

3. Geographic and Organizational Scope

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6.1 Functional Scope

The following table indicates the SAP modules in the scope of this project, which will be
required to meet ABC ’s business objectives. The precise details and processes will be
determined, documented, and agreed during the Scenario Finalization phase.

Legal Entities

ABC Private Limited, SKB Int

Geographic Locations

ABC , HO, Delhi, Kundli, Amritsar

Modules / Functions

SD Sales and Distribution

PP Production Planning

QM Quality Management

MM Materials Management

FI Finance

CO Controlling

Development Limited to 55 Free Objects – Invoice (Sales/Stock

Transfer) and Purchase order format, Sales and Purchase register,
FRICE Objects
Stock report, Customer and vendor Ledger, GST Register is not included
in 55 Objects.

Lighthouse SAP Standard Fiori Applications will be enabled as per

FIORI Apps
business requirement

TM Add On Transportation Module Package Add On

6.2 Technical Scope

Installation of SAP S/4HANA system for working of above functional modules and
SOLMAN for system monitoring and support.

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7. Project Organization & Roles

Project Office

The Project Office will provide administrative support to the project team. This ensures that
project team members can remain focused on delivering project objectives and are not side
tracked on administrative duties. The Project Office will be involved in everything from
logistical support to document production, publication of meeting minutes, tracking
schedules, developing presentations, meeting confirmations, and conference/meeting
schedules. The Project Office is located at ABC , Delhi NCR.

The project organization chart is as follows-

`The description and function of Project members will be as follows:

Project Sponsor

The project sponsor directly communicates the company’s long-term goals and visions. The
project sponsor:
 Is the ultimate owner of the project and has decision-making power in the fulfilment of
the primary responsibilities, as outlined for the steering committee members
 Maintains the final authority to set priorities, approve scope, and settle company-wide
issues

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 Promotes the SAP project throughout the organization. Where conflicts exist in the
completion of these responsibilities, the sponsor is empowered to negotiate and
promote a solution.
 Has final budget authority
The SAP project sponsor is a member of the steering committee and must participate in
integrated project status meetings at least monthly.
Time commitment: 3-6 hours per Week.
The project sponsor must have:
 An executive-level presence within the company
 A vision of the organization’s goals
 A belief that SAP is the solution for the organization
 The ability to make critical decisions under significant time pressures
 Strong leadership skills and effective negotiation skills
 A proven record of being proactively involved with organizational issues
 The ability to maintain good communication skills, including the ability to listen.

Steering Committee Member

The steering committee, the primary source for the company’s long-term goals and vision,
must set priorities, approve scope, and resolve company-wide issues. The steering
committee aids in promoting the ERP implementation project throughout the organization.
The primary responsibilities of the steering committee members are:
 Committing the required resources to the project
 Monitoring the progress and the organizational impacts of the project
 Empowering the core project team to make decisions
 Resolving escalated issues
 Generating timely decisions; supporting the project manager to accomplish the
project goals
 Resolve issues regarding achievement of milestones

The Project sponsor, the SAP consulting manager, and the company or consultant project
manager, must be members of the steering committee.
Time commitment: 3-6 hours per Week.
Steering committee members must have:
 An executive-level presence within the company
 A strong belief in, and support for, SAP as a solution for the organization
 Decision-making powers
 Strong leadership skills
 A proven record of being proactively involved with organizational issues
 Good communication skills, including the ability to listen
 The ability to represent a business unit, division, or physical location being
implemented

Mentor

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XYZ Mentors who have vast experience in the implementation of SAP shall provide the
roadmap, settle escalated issues and help in complex configuration issues.

Time commitment: 3-6 hours per Week

The responsibilities of the Mentors are-

 Ensure XYZ commitment to ABC Management is met.

 Ensure implementation conforms to the ABC contractual expectations.
 Provide leadership and direction to the implementation.
 Participates in critical milestones such as Testing.
 Share experience in respective areas.
 Monitor Project Operations.
 Control Project Scope.
 Intervenes in scope / timeline changes and approves.
 Provide workaround solutions.
 Monitor Project Plans and Deliverables.
 Suggest and Guide in improving of business processes.

Project Manager

ABC shall appoint one project manager to act as conduit between the project team and
senior management, business functions, technology, and third-party vendors.

XYZ shall also appoint one of the functional consultants, a Project Manager who will interact
with Project Manager from ABC . XYZ’s Project Manager will also provide the ABC ’ Project
manager with guidance in implementing SAP project.

Time commitment: Partial

The ABC and XYZ Project Manager shall together constitute the Project Management
Team.

The joint responsibilities of the Project Managers are:

 Manage project operations on day to day basis.

 Control project scope and monitor project work plans.
 Provide leadership and direction to all members of the project team.
 Review project plan and deliverables.
 Approve significant changes to project plans.
 Review and monitor project progress.
 Ensure good communication between teams within the project.
 Coordinate the review of the design and configuration of the SAP system to ensure
compatibility with the business requirements.
 Ensure timely issue resolution or appropriate escalation of issues.
 Report project status to the top management on a regular basis.
 Ensure contractual obligations are met with all project vendors.
 Manage the improvement of business processes.
 Ensure effectiveness of the project structure and roles.

Key User

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The Key User has ownership of the process area(s) and the project deliverables, along with
day-to-day management of the business area(s). The KEY USER must be able to work with
the project manager to develop and manage scope, assign and schedule resources, and to
monitor deliverable progress. The KEY USER is responsible for identifying the impacts and
requirements for the business processes to support the organization’s future vision within the
ERP System, and for verifying that the ERP project team is meeting the business objectives.

The KEY USER manages the effort to analyze and document the decomposition of the
company’s business processes, and directs and works with the business process team
members, owners, and users to:
 Develop the ERP design.
 Validate the design.
 Test and document the ERP implementation.
 Obtain buy-in from both the business process owners and end users.

The KEY USER also manages the execution of ERP System unit testing and integration
testing, including:
 Working with the project team to identify mission critical business process scenarios.
 Identifying transactions and data to be tested; managing expected results versus
actual results, and reasons for differences.
 Assigning follow up tasks to reconfigure and retest.
 Tracking of error resolution.

The KEY USER must be able to conduct workshops and presentations to validate business
processes and ERP solutions with the end user community, in conjunction with the business
process team members.

In addition, the KEY USER works closely with the technical team in the design and
development of reports, forms, interfaces, and conversions.
Time commitment: Full Time

The KEY USER must have:

 Specialized knowledge of the company’s business processes in an assigned
functional area. The KEY USER should not be new to the customer organization.
 Empowerment as a decision maker, with respect in the organization
 The ability to work in diversified teams, and to guide and motivate project team
members
 The ability to work both in a management capacity, and in detailed hands on system
capacity.
 A big picture view of the project goals and vision, while performing detailed analysis
and configuration tasks
 Strong time management skills and the ability to multi-task

Consultant

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The Consultant provides ERP software expertise. The Consultant effectively transfers ERP
design and configuration knowledge to both business process team leads and other team
members. The Consultant provides best business practices knowledge to aid the design
process.
Time commitment: Full Time
The Consultant must have:
 SAP application knowledge in the assigned business process area
 The ability to solve a company’s business requirement through an ERP solution
 The ability to work effectively in a diversified team; guiding and supporting project
team members
 Strong analytical skills
 Independence as a team member, with strong time management skills and multi-
tasking capabilities
 Knowledge of application software tools, including presentation, spreadsheet, and
word processing applications
 A working understanding of the ASAP Focus methodology and tools

Business Process Owner

The Business process owner (BP Owner) owns the business process from a strategic point
of view. The BP owner works directly with the Key User and team members to communicate
the success factors associated with the BP owner’s business process areas. The BP owner
is responsible for approval of the ERP solution for an assigned business area(s). The BP
owner is usually a member of the company’s senior management, for example – controller,
vice president of manufacturing, purchasing director, and so on. The BP owner can be, but is
not necessarily, a steering committee member.
Time commitment: 3-6 hours per Week
Primary responsibilities are:
 Ensuring the business targets and objectives are met by the ERP System
 Working with the Key User to develop the future view of the business processes;
planning change management activities for existing business processes necessary
for a successful ERP implementation
 Identifying and managing mission critical business scenarios in the ERP environment
and validating expected results versus actual results
The BP owner must have:
 Specialized knowledge of the company’s business process in assigned business
areas.
 Ultimate ownership of the business process, or groups of processes
 Empowerment as a decision maker
 The ability to work in both a management and detail capacity
 A big picture view of the project vision and goals, and the ability to communicate this
to the ERP project management and business process team
 System implementation experience

ABAP Developer

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The ABAP developer is responsible for the data mapping, design, development, and testing
of conversion programs, interface programs, and ABAP custom reports.
This ABAP developer works with the Consultant in the management and documentation of
the development projects, including definition of development standards and policies.
The ABAP developer may also assist the Consultant in the development of a production
support plan for the custom development.
Time commitment: Full Time
The ABAP developer must have:
 Strong written communication skills
 Strong analytical skills
 The ability to work in diversified teams
 Experience with ABAP development
 Knowledge of the customer’s current business processes

System Administrator

The ERP system administrator is responsible for:

 Configuring, monitoring, tuning, and troubleshooting the ERP technical environment
on an ongoing basis
 Performing checks, tasks, and backups within the technical environment
 Scheduling and executing the SAP transport system and Computing Centre
Management System (CCMS)
 Managing and executing ERP installations, upgrades and system patches.

In smaller implementations, the ERP system administrator may also be responsible for
operating system administration, network administration, user administration and
authorization administration, as well as the database administration.
Time commitment: As per Plan and On Call
The ERP System administrator must have:
 Experience in administrating company-wide client server applications
 Experience with appropriate operating system management
 The ability to work in diversified teams
 Strong written and oral communication skills
 Strong analytical skills
 Experience as ERP System administrator
 Knowledge of the customer’s business processes

The Project Management Organization constitutes of members as shown below-

ABC XYZ

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Project Sponsor

Steering Committee

Process Owners
Sales and Distribution

Production Planning

Quality Management

Materials Management

Finance & Controlling

IT

Project Manager

Project Team Key User (KU), Team Application Consultants

Sales and Distribution

Production Planning

Quality Management

Materials Management

Finance

Controlling

ABAP Developers

System / Network
Administrator

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8. Change Management
The scope of the project is as defined earlier in this document. It is critical that the project is
restricted to this scope. Any development outside this agreed scope would be discussed
duly.

As the Project progresses it may be necessary to request a change to the scope of the
Project. Any change will be governed by strict scope control procedures. These are intended
to reduce the impact of the work on the Project Teams and the schedule.

All scope change requests must be submitted to the Change Management Committee
(CMC). They will investigate the change in terms of its impact on the project workload and
schedule. If the change is outside of the scope of the project, then a cost will also be
determined. Input from XYZ and ABC business people will be required to determine these
costs and impacts. The same may be referred to Steering Committee, if the change is
significant and impacts the budgeted Project Scope and Timeline; with their findings for
necessary guidelines. The CMC will approve the change, suggest alternatives or reject the
request, depending upon the review and inform the Project team.

9. Complexity Management
The implementation of SAP at ABC will be kept as simple as possible. This means, all
efforts are made to adapt to SAP Best Practices, with minimal customization changes and
ABAP development.

10. Risk Management

In a project of this nature, there are always risks. Management of the risks is a critical factor
in ensuring the success of the project. Below are listed a number of potential risks and the
strategy for managing and minimizing them.

1. Commitment of User Community – ABC employees that may be affected by the

implementation of SAP must be involved and communicated about change to ensure
commitment and ownership. The End-User Support Document will address this.
2. Co-operation of all the departments in arriving at a ‘common’ SAP solution is sought,
with minor adjustments for each business. Configuring multiple solutions would expand
the project effort and cause delays.
3. Interfaces - The development of interfaces as outlined in the Technical Plan pose a
potential risk to the project and is a critical path for this project. To manage this, an
interface team reporting to the Technical Co-ordinator will be established to define the
requirements in detail at an early stage of the project. Interface development will be
given a high priority during the project to ensure that appropriate resources are
allocated and that development is completed before integration testing commences.
4. Knowledge of Methodology – the SAP Activate implementation methodology will be
utilized for this project. One of the Project Managers main responsibilities will be to

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ensure appropriate use of the implementation methodology and to educate ABC staff
on the same.
5. ABC top management shall ensure clear and timely decision-making process. Their
ongoing support must continue.
6. Hardware (Development and Production Server along with connectivity across
locations) will be planned and executed before the time they are required.

11. Project Management Standards and Procedures

11.1 Project Monitoring

This section defines the types of review meetings and reporting which will occur, their
purpose and their frequency.

The Project Managers will monitor progress and the Project Plan. The regular meetings held
would be-

 Steering Committee meeting- The purpose is to keep the concerned members

appraised of Developments, Achievements in previous period, Activities of upcoming
period, to make decisions. The purpose also is to manage and identify Issues, Risks
affecting the project and set guidelines.

 Change Management Committee meeting- To review the Change Requests and

make decision of changes.

 Meetings of the Project team, Project Managers, Process Owners (and other team
members upon requirement) for ongoing project activities and achievements.

The review schedule would be:

 Weekly review- With the Project team.

 Semi -Monthly review- With the Steering Committee.
 Semi -Monthly review- With the Change Management Comm.

11.2 Project Communication

A method of keeping the Stake Holders informed of the Projects Developments, Risk review,
Status Updates and any Impacts will be communicated as per the Communication plan.

The reporting schedule would be:

 Weekly Project Plan status review- To be conveyed to the Project team.

 Semi -Monthly Project Plan status review- To be conveyed to the Steering Comm.

12. Knowledge Transfer and Training Plan

Training on SAP will be conducted for members of the Application team on the prototype
client. Wherever possible the users will be called from all the locations centrally. However, in

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some instances the Consultants shall visit the site. Same level of training will be done once
at one location only and not be repeated across multiple sites.

During the project, achieving knowledge transfer of relevant Business transactions to ABC
staff is an important goal of the SAP Consultants from XYZ:

 From the XYZ Basis consultants to ABC ’s technical staff. Much of the SAP Basis
role is to advise the client on how to manage the new system.
 From the XYZ senior consultants of each modules to business users, business
analysts and other project team members. This will occur particularly in the joint
design sessions and prototyping sessions. Knowledge transfer is an explicit goal of
these sessions.

13. Project Name and One-line Slogan for the project

“Project XYZ”

Approved: Date: 22th June 2020.

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