Auto Retailers, Inc.
description
Transcript of Auto Retailers, Inc.
Auto Retailers, Inc.
Pedro GonzalezKyle Grube
Sean Kwedar
In July 15th, 2011 Auto Retailer’s CEO attended a large EXPO
Decided to implement RFID tags in the warehouse
CEO consults with IT & Services Department IT & services department is overwhelmed
with the project.
Background Information
Radio Frequency Identification◦ Smart tags that can be used for tracking.
What’s RFID?
Tracking of orders as they move through the warehouse.◦ Shipping containers are sealed before they are
inventoried properly◦ Shipping labels are lost or damaged◦ Large orders comprised multiple containers and
the entire order doesn’t ship at the same time◦ Orders are shipped without being recorded
(duplicate orders)
Current Problems with system
Possible Solutions
Series1Quantity
Price$
Containers
Inventory
Implement RFID “smart tags” Track containers movement Create a database Train all employees
Main Objectives
Submitted on August 1st, 2011 Included approach Project Constraints
◦ completion date May 17th, 2013◦ Everything should be outsourced◦ Training should be available to employees◦ Service system for 10 months
Reports must be submitted every month
Project Charter
All proposals due date was August 18th, 2011 Statement of Work
◦ Install hardware and software for RFID tags◦ Provide training◦ Provide service and maintenance
Acceptance criteria: Requirements and SOW Approvals – IT Executive Fixed Contract Evaluation Criteria: Approach (30%)
Experience (30%) Price (30%) Schedule (10%)
RFP
ABC Corporation – Towson, MD◦ Ranked top tech companies in the world
Problem Solution Benefit Objectives Experience Schedule Costs
Proposal
Task Name Duration Start Finish
Auto Inc Project 377 days Thu 12/1/11 Fri 5/10/13
Profit 377 days Thu 12/1/11 Fri 5/10/13
Project Management 158 days Thu 12/1/11 Mon 7/9/12
Intiate Project 1 day Thu 12/1/11 Thu 12/1/11
Develop Team Organization 1 day Thu 12/1/11 Thu 12/1/11
System Analysis 10 days Fri 12/2/11 Thu 12/15/11
System Design 60 days Fri 12/16/11 Thu 3/8/12
System Development 12 days Thu 3/8/12 Fri 3/23/12
System Integration & Test 70 days Mon 3/26/12 Fri 6/29/12
System Training 6 days Mon 7/2/12 Mon 7/9/12
Project Wrap Up 1 day Mon 7/9/12 Mon 7/9/12
System Service & Maintenance 219 days Tue 7/10/12 Fri 5/10/13
Service and Maintenance 219 days Tue 7/10/12 Fri 5/10/13
Job Title Hours Expected Total Salary
Project Manager 1300 hours @ $182.30/h $236,990.00Business Analyst 80 hours @ $45/h $3,600.00Sr. Software Engineer 480 hours @ $90/h $43,200.00Software Engineer 480 hours @ $75/h $36,000.00Sr. Computer Tech 600 hours @ $75/h $45,000.00Computer Tech 600 hours @ $45/h $27,000.00System Tester 1 80 hours @ $35/h $2,800.00System Tester 2 80 hours @ $35/h $2,800.00Computer Techs (10 month service) $105,000.00 Total Cost: $502,390
# RFID tags Price of RFID tags1,000,000 @ .25 $250,000.00
Equipment Name Quantity Total Price
Stationary RFID readers
10 @ $400 $4,000.00
Hand-held RFID readers
20 @ $150 $3,000.00
Servers 3 @ $5061.41 $15,184.23Wireless Access Points 5 @ $190.04 $950.20Workstations 2 @ $3150 $6,300.00 Total Cost: $29,434.43
Labor CostProject Manager $236,990.00Business Analyst $3,600.00Sr. Software Engineer $43,200.00Software Engineer $36,000.00Sr. Computer Tech $45,000.00Computer Tech $27,000.00System Tester 1 $2,800.00System Tester 2 $2,800.00Computer Techs (Service & Maintenance) $105,000.00
Materials CostRFID Chips (1 million) $250,000.00
Equipment CostStationary RFID readers $4,000.00Hand-held RFID readers $3,000.00Servers $15,184.23Wireless Access Points $950.20Workstations $6,300.00
Documentation CostReports, Manuals, Drawings $1,300.00
Overhead Cost3% of Above Costs ( $892,974.43 ) $26,789.23
Contingency $50,000.00Profit $194,320
Total Cost of Project $1,054,233.66
Score all criteria on a scale from 1 (Low) to 10 (High) Evaluation Criteria
Weight A Score B Points A x B Comments
1. Approach 30 10 300 Great approach to problem
2. Experience
30 8 240 Well qualified and experienced staffs
3. Price 30 9 270 Second best price among the proposals
4. Schedule 10 7 70 Schedule is reasonable
Total 100 880
Proposal Evaluation
Fixed priced Approved sub-contractors Ownership and designed will be owned by
Auto Retailers, Inc. Auto Retailer may terminate the contract
after providing contractor with warning Payment method is quarterly Contract amount
◦ $1,054,233.66
CONTRACT
Integration and implementation can’t interfere with the operations of the warehouse
Train Employees – Learning curve Changes approved by Committee & IT
executive Equipment purchased from China Set weekly limit to service and monitor
tracking system
Project Constraints
Project Plan Work Breakdown Structure
RFID Project (Project
Manager)
Systems Analysis (Business Analyst)
Assess & Interview (Business Analyst)
General Requirements (Sr. Computer Tech)
Systems Design (Sr. Software Engineer)
Generate Top Level Design
(Sr. Software Engineer)
Generate Lower Level Design
(Sr. Software Engineer & Software Engineer)
System Development (Sr. Software Engineer)
Procure Hardware (Sr. Comp Tech)
Procure & Customize Software
(Sr. Software Engineer & Software Engineer)
System Integration (Sr. Comp Tech)
Material Tracking, Pallet, and Container
Subsystems (Sr. Comp Tech &
Comp Tech)
Full System Testing (System Tester 1 & 2)
System Training & Project Wrap Up (Sr. Comp Tech)
Training (Sr.Comp Tech &
Comp Tech)
Project Wrap Up (Project Manager)
System Maintenance (Sr. Comp Tech)
Servicing (Sr. Comp Tech &
Comp Tech)
Develop team System Analysis System Design System Development Integration and tests Training Monitor and Service System
Activities
PeopleCapital Information
Resources
Risk Assessment Risk Impact Likelihood
of Occurrence
(L, M, H)
Degree of Impact
(L, M, H)
Action Trigger
Responsibility
Reponse Plan
Cost of Materials Rise
- Cost of Project will rise.
L M Search for most affordable rates before purchasing.
Sr. Computer Tech
-Ask Auto Retailer’s Inc. for an increase in material cost
Installation Takes Longer
-Project life is extended
M H Make detailed reports of work completed
Project Manager
-Employees work overtime -Hire more resources
Training Problems
-Employees cannot grasp system
L H Make a dummied down GUI for non tech users
Sr. Software Engineer
-Recreate a more simplified GUI
Hardware Malfunctions
- Project Life extended
L M Test each piece of hardware before installing into the system
Sr. Computer Tech
-Exchange hardware ASAP
Task Name Cost Duration Start Finish
Auto Inc Project $1,008,258.40 377 days Thu 12/1/11 Fri 5/10/13
Profit $1,008,258.40 377 days Thu 12/1/11 Fri 5/10/13
Project Management $708,818.40 158 days Thu 12/1/11 Mon 7/9/12
Intiate Project $3,200.00 1 day Thu 12/1/11 Thu 12/1/11
System Analysis $5,795.00 10 days Fri 12/2/11 Thu 12/15/11
System Design $79,432.52 60 days Fri 12/16/11 Thu 3/8/12
System Development $320,307.08 12 days Thu 3/8/12 Fri 3/23/12
System Integratiaon & Test $63,632.30 70 days Mon 3/26/12 Fri 6/29/12
System Training $6,024.30 6 days Mon 7/2/12 Mon 7/9/12
System Service & Maintenance $105,120.00 219 days Tue 7/10/12 Fri 5/10/13
Cost per Activities
Reconfirmation of plan Assess the performance of the tasks
◦ Take corrective actions Keep project team motivated
Methods for Project Control
Discuss the scope of the project Proactive management (Planning,
Monitoring, Leading, Controlling)◦ Every employee was involved in the creation of
the action plan Continuing monitoring of the project Evaluation from customer PEOPLE – Positive Environment
Critical Success Factors
People with experience are mentors Trust- between employees and business
partners◦ First Impression
Understanding of the objective and scope of the project
Reward employees for great performance
Conclusions