ARIBA IMPLEMENTATION AT MED-X
MANAGING EARNED VALUE
Sai Gireesh Pokala
MED-X Inc. is a pharmaceutical giant with a worldwide presence. MED-X’s main objectives were to revamp its procurement organization into a self operating decentralized purchasing model . Med-X chose Implementation technologies for consulting services and Ariba to provide them e-procurement solutions and manage their spendings well.
There were issues in the project which was leading to delay in Final deployment. The major issues in the project were lack of experience of the Project manager who was skilled technically but had no experience in full-life-cycle e-procurement implementation. Also, there were issues in Project planning of resources, risk analysis ,reporting.and inter-team communication .
The Earned value analysis was conducted on the project to monitor cost performance using - Integrated Performance report, Schedule Impact Report and Cost Impact Report. Both, combined and individual analysis was performed on the two critical components of the project – Technical Infrastructure and Software Customization.
The CPI and SPI of the Software Customization component are 1.18 and 1.13 respectively and for Technical Infrastructure component are 0.91 and 0.94 respectively. This states that Software Customization is on track while Technical Infrastructure is behind schedule and over budget. The combined CPI and SPI are 1.04 and 1.03 which seems good overall in cost and schedule.
There could be multiple solutions to rectify the project issues like hire more resources, reduce the scope, seek for extension of the project. But the best solution seems to be hiring more skilled resources onboard to cater the delays and deliver a quality product on time. This will make the stakeholders and the client happy with minimal inputs as other solutions might require to spend extra cost and time .
The major issues that impacted the implementation of ARIBA and raised concerns in the management team of the project are:
The project manager was not very efficient and experienced to plan or control the project well.