We all know that estimating can be complex and not always accurate. There are so many variables in an ERP project rollout and each individual environment and specifications are so different that it can be a challenge to get an accurate estimate in place.
Combine these facts with the human nature aspects of a tendency to idealize our own capabilities or project timelines (things usually take longer than we think they will, especially if there is a wrench in the works at some point) and our desire to please other people, and estimating becomes a pretty complex task and one that often isn’t 100% correct!
How To Estimate an ERP Project
Typical steps of estimating include breaking the project down by various aspects such as cost per implementation module, project management, design, integration and customization.
Spending enough time to ensure thorough requirements gathering is an important step. As is utilizing planning documents such as specifications and project plans to guide the project smoothly and also to help avoid scope creep. Sticking to written planning documents and being very clear about last minute ‘I’d like to do this as well’ can go a long way to avoiding scope creep. Being aware that add-ons mid-project do mean that the cost and time required will increase.
Keeping records and historical data can help with future estimates. Having good data on how much time past projects took, and logging time accurately on current projects can be used for estimating projects in the future.
Prioritizing deliverables within the project scope of ‘must have’ and ‘nice to have’ can serve a purpose. If some the ‘nice to haves’ don’t make it in the first project then they can perhaps be set to ‘future’.
Article from 180 Systems: How to Get An Accurate Estimate of ERP Implementation Costs
180 Systems has posted a great article on How To Get An Accurate Estimate of ERP Implementation Costs that we think is a great one to share with our readers. Read their post here.
They offer some great points specifically on how to get an accurate ERP project estimate from a writer who sounds very experienced in estimating ERP rollouts and the entire project life cycle.
Thank you 180 Systems!
Please contact us to discuss any questions or concerns you may have about estimating your ERP project, whether you are in the midst of your project or just in the beginning of forming thoughts about it.
While you’re at it, in our opinion it’s never too early to start thinking about how to measure the success of an ERP implementation. Maybe even at the beginning of a project is a good time! Read our recent blog post here with a link to 180 Systems – great stuff!
If you’re still on the fence, here are a couple of posts on the benefits of an ERP system: