RISK ASSESSMENT PROJECT CASE STUDY ERP UPGRADE AT PT BADAK NGL

• Main Author: Wijaya Perwira, Pandu
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/46390
• Institution: Institut Teknologi Bandung

PT Badak NGL’s ERP (Enterprise Resource Planning) system is currently facing obsolescence issues both IBM infrastructures and Oracle ERP version. Oracle ERP addresses major activities such as Maintenance, Procurements, Human Resources, and Financial. Therefore PT Badak NGL prepares to launch an Oracle ERP Upgrade Project in order to sustain its Oracle ERP and Plant Operation excellence. However based on two previous ERP projects that were suffered delay and cost overruns, and the ERP Upgrade project most likely no exception. One of the facts found that there is no risk mitigation or contingency plan being implemented, hence in this ERP Upgrade project the risk response and plan is going to be employed. The PMBOK Risk Management, ATOM and ERP Risk Management are the methodologies that being used to carried out risk assessment. Risks were identified by combining IT, ERP risk and lesson learned factors. Next these risks are evaluated by using Risk Matrix to get the high-risk type in terms of probability and size of impact. Ten risks that were drawn out are analyzed further by using Interpretive Structural Modeling (ISM) to identify the risk snowball effects. It was identified that Capability & Performance of Infrastructure was the most influencing factor that causes the snowball effect. Hence the solution to response such risk is by preparing collaboration activity that involves the ERP hardware and software vendor, existing system assessment, proof of concept (POC) in order to build a comprehensive solution and to prevent miscommunication and overlooked assumptions.