The COSMIC EPC method - An ERP functional size measurement method delivering time and cost estimates

Sammanfattning: Background: The implementation of ERP (Enterprise Resource Planning) systems issubstantially different than technology orientated software applications e.g. embeddedsoftware. The ERP domain is recognized with a high degree of complexity originating fromdifferent organizational divisions which is operationalized by a wide set of businessprocesses. These complexities make it very challenging for the effort estimation of ERPimplementation projects which often cause these projects to run overtime or over budget. Thecurrent project estimation methods do not account for the complexities involved in ERPimplementations which lead to inaccurate effort estimates.Method: In this study we analyze a number of functional size methods which could be usedto improve ERP project effort estimations for ERP implementations. We studied nine projectsat SAP AG as a focused study for effort estimations. The research was carried out using anaction research method while collecting primary data through observations and interviews.Results: This thesis investigates why the current ERP effort estimation methods fail to deliveraccurate estimates while creating a new method which could provide accurate estimates. TheCOSMIC FSM method is selected as the best fit for ERP effort estimation and used as thebasis to create a new method which is used during a focus study at SAP AG. A new FSMmethod called the COSMIC EPC is created for accurate ERP effort estimations. The newmethod primarily makes use of business process models (BPM) as input to measure a projectsfunctional size. A supportive toolset is developed to further enhance on the method’scapabilities and integration into existing practices. Add-on functionality for the SAP ARISEPC (business process modeling tool) and SAP ASAP (project management software). TheCOSMIC EPC method is unique due to its capability to determine the functional size of ERPbusiness processes used as an input for accurate time, cost and effort estimates.Conclusion: We conclude that when adding new parameters to the estimation methods theaccurateness of ERP projects can effectively be improved. The parameters include businessprocess reuse and customization which increase the visibility of ERP process complexity andincrease the accuracy involved in ERP effort estimations. The COSMIC EPC method can beused to produce accurate time and cost estimates and improve on the existing expert judgmentmethods used today.