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

PROJECT GRANTED TO:

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