lucent technologies – proprietary use pursuant to company instruction4/28/2005 1 executive summary...

Lucent Technologies – ProprietaryUse pursuant to company instruction4/28/20051

Executive SummaryInitiation Gate Review

April 28, 2005

QD042H IBM NAR EDI Deployment

WPO: Jose Mejia, WPE‘s: Steven Sherman and Jay French

IT Executive: Joe Warfsman

IT Project Manager: Peter Roeleveld

4/28/2005

Lucent Technologies – Proprietary

Use pursuant to company instruction2

Table of Contents

Project Overview

Project Approach

Deliverable Summary

Milestone Review

Project Organization

Project Costs

Key Assumptions

Dependencies

Risks

Outstanding Issues

Next Steps

Attachments

4/28/2005



Project Overview

Background– IBM has requested Lucent to implement Electronic Data Interchange (EDI) for

the transmission of several transactional messages in support of a contractual obligation

– Lucent FY04 revenue with IBM was $5M and is estimated to grow to $7M+ in FY05

– Customer order volume for FY04 was 73 orders globally and is expected to increase in conjunction with the increased revenue volume in FY05

Project Goals and Objectives– Establish an EDI interface with IBM NAR

– Deploy the following EDI transactions:

• EDI 850 (Purchase Order)

• EDI 860 (Order Changes – Customer)

• EDI 810 (Invoicing)

• EDI 824 (Application Advice)

• EDI 820 (Remittance)

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Project Overview Continued

Scope– IBM North America (US only)

• IBM US SAP Sold To is 8100002 (INTERNATIONAL BUS MCHS CORP)

• IBM US SAP Bill To codes are: 1400102 (4 Allegheny Ctr. Pittsburgh, PA 15212-5255), 1403661 (PO Box 9005 Endicott, NY 13761-9005) and 1403858 (4035 Seminole Trail Cumming, GA 30040)

– Phase 1:

• Purchase Order (EDI 850)

• PO Change (EDI 860)

– Phase 2:

• Invoice (EDI 810)

• Remittance (EDI 820)

• Application Advice (EDI 824)

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Project Approach

– This project will use the Lucent PMO Methodology and Gate Review processes to ensure adherence to project timelines as well as accurate communication and understanding across the teams and business units

– The size of the project is Medium.• Testing required with EDI and SAP• External testing required with IBM

– The following Gate Reviews are planned during the course of the project:

• Project Initiation Gate• Failsafe Gate for each phase of the project• Exit Gate

– This project is classified as Medium, with full project commitment at Initiation

– This project is being managed under the B2B FY05 Program (QD042)

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Security Approach/Impact

• The Risk Assessment Profile for QD042H has been approved by IT Security Risk Management (Barry Pulliam). The security impact is low since no changes to security are anticipated.

•There are no security design requirements (will use existing security measures)

•Therefore, this project requires no Security Testing.

Does this request:

(2a) affect or modify application security? No

(2b) affect or modify infrastructure security? No

(2c) introduce or change the way Lucent Proprietary Restricted (or higher) information is handled?

No

(2d) create or modify application user roles or application policy manual?

No

Suggested Approach for testing: Security Design - Risk Management Review NOSecurity Architecture Review NOAutomated Testing NOBlack Box Testing NOSource Code Review NO

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Deliverable Summary

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Deliverable Summary-2

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Milestone ReviewXOverall Status:

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Project Organization

Q D 042H - IB M N A R E D I

D o ug Le ithIT C lien t M an a g er

C rys ta l S zym a n skyIT C lie n t M a na g e m e nt

K e ith W a lp e rIT A p p lica tio n IB M

L u is A C is n e rosIT A p p lica tio n IB M

F re d e ric k S B ro w nIT A p p lica tio n IB M

IT A pp lica tio n s S E IB M

P e te r R o e le ve ldIT P ro je c t M an a g er

L in d a O 'D on n e llP ro je c t L e ad

K e yna Fu d a lS A P D e ve lo p e r/Te s te r

S c o p in g /D e s ign

S a ten dra S in ghS A P D e ve lo p e r/Te s te r

S c o p in g /D e s ign

M a he n dra P a te lS A P D e ve lo p e r/Te s te r

Jo h n W id g erQ T C S A P S D

L e isha M e a resS A P In te g ra tion D ire c to r

Jo e W a rfs m anIT E xecu tive

B ria n D u linL a ure n Jan ish

B u sin e ss L ea ds

Jo h n R ig gsS C N W P R

S te ve S h e rm anS C N W P E

Jo se M e jiaS C N W P O

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IT Program Costs (budget/forecast through project completion)Summary for Total B2B Program (all projects combined)

ONETIME Costs

Prior Year(s) <2004 >

Total Approved

SpendIUS

BudgetExp

BudgetCapital Budget

IUS Budget

Exp Budget

Capital Budget

Total Actuals to Date

IUS Actuals

Exp Actuals

Capital Actuals

Lucent Staff 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

3rd Party 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Hardware 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Software 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Totals: 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Current Yr <2005 >

Total Approved

SpendIUS

BudgetExp


IUS Budget

Exp Budget

Capital Budget


IUS Actuals

Exp Actuals

Capital Actuals

Total Forecast

forecast IUS

forecast Exp

forecast Capital

Last Approved Forecast (Total)

Forecast Change

Lucent Staff 900.0 0.0 0.0 0.0 0.0 0.0 0.0 82.5 16.8 65.7 0.0 900.0 0.0 0.0 0.0 900.0 0.0

3rd Party 2,100.0 0.0 0.0 0.0 0.0 0.0 0.0 229.9 229.9 0.0 0.0 2,100.0 0.0 0.0 0.0 2,100.0 0.0

Hardware 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Software 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Totals: 3,000.0 0.0 0.0 0.0 0.0 0.0 0.0 312.4 246.7 65.7 0.0 3,000.0 0.0 0.0 0.0 3,000.0 0.0

Next Year <2006 >

Total Approved

SpendIUS

BudgetExp


IUS Budget

Exp Budget

Capital Budget

Total Forecast

forecast IUS

forecast Exp

forecast Capital


Forecast Change

Lucent Staff 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

3rd Party 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Hardware 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Software 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Totals: 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Project Total

Total Approved

SpendIUS

BudgetExp


IUS Budget

Exp Budget

Capital Budget


IUS Actuals

Exp Actuals

Capital Actuals

Total Forecast

forecast IUS

forecast Exp

forecast Capital


Forecast Change

Totals: 3,000.0 0.0 0.0 0.0 0.0 0.0 0.0 312.4 246.7 65.7 0.0 3,000.0 0.0 0.0 0.0 3,000.0 0.0

Scoping through Design Build through Exit

All Numbers are in Thousands.

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IT Project Costs (budget/forecast through project completion).Detail for QD042H IBM NAR EDI

ONETIME Costs

Prior Year(s) <2004 >

Total Approved

SpendIUS

BudgetExp


IUS Budget

Exp Budget

Capital Budget


IUS Actuals

Exp Actuals

Capital Actuals

Lucent Staff 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

3rd Party 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Hardware 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Software 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Totals: 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Current Yr <2005 >

Total Approved

SpendIUS

BudgetExp


IUS Budget

Exp Budget

Capital Budget


IUS Actuals

Exp Actuals

Capital Actuals

Total Forecast

forecast IUS

forecast Exp

forecast Capital


Forecast Change

Lucent Staff 40.6 6.9 7.3 0.0 21.4 4.9 0.0 0.0 0.0 0.0 0.0 40.6 28.3 12.2 0.0 0.0 0.0

3rd Party 96.0 15.5 0.0 0.0 80.4 0.0 0.0 0.0 0.0 0.0 0.0 96.0 96.0 0.0 0.0 0.0 0.0

Hardware 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Software 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Totals: 136.6 22.4 7.3 0.0 101.8 4.9 0.0 0.0 0.0 0.0 0.0 136.6 124.3 12.2 0.0 0.0 0.0

Next Year <2006 >

Total Approved

SpendIUS

BudgetExp


IUS Budget

Exp Budget

Capital Budget

Total Forecast

forecast IUS

forecast Exp

forecast Capital


Forecast Change

Lucent Staff 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

3rd Party 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Hardware 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Software 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Totals: 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Project Total

Total Approved

SpendIUS

BudgetExp


IUS Budget

Exp Budget

Capital Budget


IUS Actuals

Exp Actuals

Capital Actuals

Total Forecast

forecast IUS

forecast Exp

forecast Capital


Forecast Change

Totals: 136.6 22.4 7.3 0.0 101.8 4.9 0.0 0.0 0.0 0.0 0.0 136.6 124.3 12.2 0.0 0.0 0.0

Scoping through Design Build through Exit

All Numbers are in Thousands.

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On-Going IT Operational Cost Analysis (Total Project)

Notes:• Operational costs are expected to be absorbed by current support headcount.• Actual Program Costs are through 3/31/05.• Actual costs incurred by the following projects:

• QD042A – MasTec EDI• QD042C – Qwest LCAM• QD042D – US Cellular EDI• QD042F – Telus• QD042K – Sprint 855 Modifications• QD042O – Sprint EDI/PO Tax Exempt Flag• QD042U – AT&T Ariba Upgrade• QD042S-1 – Verizon CCP+ Phase 2 Firm Schedule/Completion Notice• QD042W – Telefonica Add Ons

IT Operational cost analysis

Pre-Project Costs

2004 OPS Cost

2005 OPS Cost

2006 OPS Cost

Recurring Yearly OPS

Cost2004

Incremental2005

Incremental2006

Incremental

Recurring Yearly

Incremental

Lucent Staff 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

3rd Party 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Software 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Totals: 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

All Numbers in Thousands

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Key Assumptions

Assumption Type AssumptionsProject Size / Complexity Project is classified as medium.

Scope is limited to IBM NAR (US only) Phase 1: Purchase Order (EDI 850), PO Change (EDI 860) Phase 2: Invoice (EDI 810), Remittance (EDI 820), Application Advice (EDI 824)

Resource Assumptions IBM will have resources available to test. To deliver this project on time, it is assumed that all project resources will remain on this project for the duration of this project.

Schedule Assumptions IBM will align with our testing schedule. Each organization will meet or beat each project milestone. Failure to do this will jeopardize the overall project. Because there is EDI and SAP development, the deployment date must occur on one of the monthly IT organization Operational Deployment dates

Cost Assumptions Lucent rate is $77 an hour IBM rate is $92 an hour SAP Consultant rate is $160 an hour

Risk Assumptions A higher priority project may impact project schedule and resources ITSM project takes a higher priority, which may impact resource availability In the Month Augustus the Data Centre will move to an other location.

Other Assumptions Description

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Dependencies

None at this time.

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Risks

If Risk is realized during project note “Yes” If not Realized note “No”.

Probability of Occurrence

1-30% Low

31-60% Medium

61-100% High

Severity Low Medium High

Resources 0-5% 5.1-9.9% 10%+

Cost Under $50k $50 - $99k $100k+

Change in Failsafe and or Go-live

Less than 2 weeks

2-3 Weeks Over 3

Weeks

Risk Probability(H, M, L)

Severity(H, M, L)

Mitigation Strategies Realized?(yes/no)

Project Schedule and Resources – as with all projects, the schedule may be changed or the project put on hold due to a higher priority project within Lucent and/or IBM.

L M Maintain close communication with PMO and the Project Team. We will need to be alert to issues that may have an impact on the timing of the project, and the team will have to take action as early as possible in order to minimize any negative impact.

Effort needed for the ITSM project takes a higher priority, and may impact resource availability

M H Monitor effort needed to support ITSM, and plan appropriately

To deploy, IBM must be prepared to accept and send our messages and deployments must be synchronized.

M M Maintain communication with IBM to monitor their readiness to deploy.

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Outstanding Issues

None at this time.

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Next Steps

Next Steps Responsible Due DateEstablish Weekly Team Meetings Peter Roeleveld 5/2/05

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Attachments

The next zip file contains

1. Project Request

2. Project Definition Document

3. Communication Plan

4. Communication Plan Sign Off

5. Security Risk Assessment Profile

6. Security Review Sign Off

7. WPE Sign Off

Not yet available

1. Detailed Project Work Plan

QD042H-attachments.zip

lucent technologies – proprietary use pursuant to company instruction4/28/2005 1 executive summary...

Documents

project milestone

overall project

project resources

project manager

project timelines

project commitment

remittance edi

invoice edi