Quality Moving and Storage Prepared By: The Outlanders
Statement of Work Date: June 24, 2002
Project Name: Inventory Tracking and Sales Invoice System
Project Manager: The Outlanders
Customer: Quality Moving and Storage
Project Sponsor: Steve Costa
Project Start/End (projected): 6/29/2002 – 7/29/2002
Development Staff Estimates (man-months):
Jr. Analysts 1.0
Sr. Analysts 0.5
Project Manager 1.0
Trainers 0.5
Total: 3.0
Project Description:
Goal:
This project will implement an inventory tracking and a sales invoice system for Quality Moving and Storage. The purpose of this system is to automate the inventory tracking function and the sales invoice function, which will reduce the data entry errors, increase the data security, help decision making and reporting capabilities while maximizing profits and leaving room for customer service improvements.
This new system should be designed to enable Quality Moving and Storage’s employees to better understand the moving information through clearer and error-free scheduling of jobs to be done. The new system should also improve customer service by improved daily management activities and increased access to Quality Moving and Storage’s data.
Objectives:
· To implement an inventory tracking (scheduling) system that will reduce the cost of scheduling mistakes by $2,833 per year by 07/29/03.
· To implement a sales invoice system that will reduce the cost of lost jobs by $2,833 per year by 07/29/03.
· To implement a reporting system that will decrease lost jobs due to lack of information by $2,833 per year by 07/29/03.
Phases of Work
The following tasks and deliverables reflect the current understanding of the project:
In analysis, the requirements for the new system will be gathered and prioritized, to be used in the evaluation of alternative solutions. The Outlanders will propose a recommended alternative.
In design, the developers will create specifications for the new system, based on meeting the requirements, constraints and objectives of the new system. Design specifications include input and output screens, forms, reports, databases, and controls.
In implementation, the design specifications will be used to code the application programs, then test these programs. If the recommended solution is a package, then the application package will be tested. A plan will be developed for creating and loading data into the new system. Users will be trained. Final systems and user documentation will be created. Once the system passes its acceptance tests, it will be put into production.
Quality Moving & Storage Prepared by: The Outlanders
Statement of Project Scope Date: June 24, 2002
______
General Project Information
Project Name: Inventory Tracking and Sales Invoice System
Sponsor: Steve Costa, President
Project Manager: The Outlanders
______
Problem/ Opportunity Statement:
Currently bookings are written on a "white board" and recorded by a "Day Timer". This method is not efficient because the information on the white board is hand written and sometimes illegible. Another problem is that scheduling and rescheduling is often delayed until the Day Timer is available to present his entire schedule. Additionally, the current system does not provide any manageable data that could be used to generate reports, they are unable to forecast volume projections for upcoming months. The impact on the business is that they have lost two jobs in three years due to overbooking.
______
Project Goals:
To implement an automated system that will decrease data entry errors, generate reports that will assist with decision making, and maximize profits. The new system will improve daily management activities by increasing access to data.
______
Project Objectives:
To implement an inventory tracking (scheduling) system that will reduce the cost of scheduling mistakes by $2,833 per year by 07/29/03. To implement a sales invoice system that will reduce the cost of lost jobs by $2,833 per year by 07/29/03. To implement a reporting system that will decrease lost jobs due to lack of information by $2,833 per year by 07/29/03.
______
Project Description:
A new information system will collect booking information that will be used to schedule jobs and track customers. Additionally, the new system will generate reports that will forecast volume projections for upcoming months. This system will reduce job booking time and eliminate overbooking. The new system will facilitate daily management activities and increase data access.
______
Project Constraints:
The budget for the project is $23,233 for developing and implementing the new system. The budget for recurring costs is $2,700 per year to cover software maintenance and updates, hardware maintenance, added communication lines, Internet service, and supplies.
______
Business Benefits:
Intangible: Improved management decision making
Intangible: Improved customer satisfaction
Intangible: Improved employee morale due to booking jobs efficiently and
without errors
Tangible: Improved sales due to fewer scheduling mistakes resulting in $1,200 increase in sales per year
Tangible: Labor force reduction of $5,300 for five years
______
Project Deliverables:
Inventory Tracking and Sales Invoice system analysis and design
Inventory Tracking and Sales Invoice system programs
Inventory Tracking and Sales Invoice documentation
Training procedures
______
Estimated Project Duration:
3 months
3.2 System Description
When evaluating the system needs for Quality Moving & Storage, we will determine if a dollar amount for application downtime can be assigned. We will also consider direct and indirect costs of downtime. Will all applications components or process share the same level of importance? Some applications or maybe different parts of the application often bear different levels of mission-criticality. For the Quality Moving & Storage Company, data entry may be available only between 8:00 a.m. and 5:00 p.m., or a particular batch job may need to be completed before 7:00 a.m. Such requirements may mean that although the criticality of the entire application does not warrant the substantial cost associated with higher availability, some investment should be made to minimize the potential of certain failures to occur during certain time frames. Finally, is the availability of the application more important than data consistency? In many order entry systems, conversely, it is more important that the application remain available at all times even if a few orders are lost. Buying an off the shelf system, a making a few modification that caters to Quality Moving & Storage’s needs might prove more advantageous.
3.3.1 Economic Feasibility
Intangible Benefits:
· Increased competitive edge over other moving and storage companies
· Increased possibility to become an agent for a nationally recognized moving company such as Bekins or Allied
· Increased organizational flexibility because of better communication lines between office and remote staff
· Ability to communicate with long distance crew to update locations and any mechanical problems
· Increased staff morale since data manipulation is significantly improved with an information system
· More accurate and timely information because of ability to output reports
Intangible Costs
· Decreased personal interaction with staff and customers
· Anxiety of staff due to unfamiliarity with computer systems
· Operational frustration if computer has “down-time” since schedules cannot just be erased off the board and changed
· Customers may not like “automated” style, preferring a written estimate
The Economic Feasibility Analysis based on the cost/benefit worksheets shows a five-year analysis for Quality Moving and Storage. The total NPV of all benefits after five years is $30,641. The total NPV of all costs after five years is $23,233, resulting in an overall NPV of a positive cash flow, $7,408. The benefits of this system from the project exceed the costs. The return on investment for this system is 32%, which is more than the minimum of 20%. The system shows a positive cash flow at 2.89 years, the break-even point. The system shows a definite economic feasibility.
YES, this system is economically feasible.
3.3.2 Technical Feasibility Analysis
Familiarity with Application: The Outlanders have adequate familiarity with the moving business and its needs especially after the interviews.
Familiarity with Technology: Local Area Network (LAN) and Wireless technologies along with the Internet technology will be used in this project. Since the current system is entirely manual, the system will not be an extension of the current technology but it will be able to handle the same functions. Technical skills of The Outlanders will need to be upgraded. Outside consulting is an option.
Users’ Project Experience: The Outlanders is the first developer group that Quality Moving and Storage has contacted.
Project Size: The Outlanders consist of six individuals. The project will take one month to complete. The project will handle the inventory tracking system and the sales invoice system of Quality Moving and Storage. The project is for a departmental system.
Project Structure: This is a new system but the requirements of end users are well stated.
Project Complexity: This is a simple system with one or two inputs, two outputs, a database and no program interfaces. Two functional requirements have been identified, which are inventory tracking and sales invoice.
Integration with Other Systems: This is a standalone system.
Risk Assessment: This is a low risk-high benefits type of project. There is only one identified risk associated with the project, which is addressed below:
· Risk:
The Outlanders has only academic experience in systems development.
· Likelihood of risk:
High probability of risk.
· Potential Impact on the Project:
The risk may or may not increase the time to complete the project.
· Ways to Address this Risk:
Harder work than usual by The Outlanders.
Outside consultation may be used when a problem comes up during process.
Conclusion: YES ON TECHNICAL FEASIBILITY.
3.3.4 Operational Feasibility
The new system will streamline Quality Moving and Storage’s day-to-day activities. Scheduling (and rescheduling) will not be put off do to the absence of the Daily Planner, and problems resulting from illegible handwriting will no longer occur. It will completely replace the current system (removing the need for a dry erase board.) Additionally, the new system will generate reports to assist management in decision making and planning. The new system is operationally feasible and will likely exceed the needs stated on the Systems Request Form.
3.3.5 Legal Feasibility
At this point in the development process there are no foreseeable legal ramifications of the new information system. Therefore, the proposed information system is legally feasible. Obviously, if an alternative solution is chosen that incorporates the use of an existing software package, a user license will be obtained at the point of purchase. There are no Union rules to deal with, however, anything involving freight transport is subject to UCC regulations. The new system may not have much (if any) involvement in this aspect of operations.
3.3.6 Schedule Feasibility
The new system is quite feasible from a scheduling aspect as well. Since the existing schedule will be input into the new system, it isn’t urgent that operation begins at a particular time. The use of desktop calendars and other paper-based systems is still common amongst same size competitors in the moving industry. According to the System Service Request, any losses resulting from the current system can be tolerated. This allows for a flexible timeline that can be adjusted to meet the needs of the developers.
3.3.6.1 Key SDLC Phases
There are four phases of the Systems Development Life Cycle (SDLC). Phase one, Systems Planning and Selection, involves the identification of potential development projects, their classification and ranking, and finally, the selection of an information system. Steve Costa voiced his need of management reports for future planning, while the project development group found ways to improve the existing system. After the requirements were identified, the most important factors of the company’s operation were ranked and a new system was selected. Systems analysis is the second phase of the SDLC. Currently, the existing system is being evaluated to assist in the design of the new information system (systems design is phase 3 of the SDLC). Finally, in stage 4, the new system will be implemented and begin operating. The most important tasks of the design and implementation phases involve a smooth transition from the existing system to the new one, while insuring all the basic requirements are met. Current operating information will need to be input into the new system, and employees will need to be properly trained.
3.3.6.2 Task Descriptions and Deliverables
Sources of potential projects coming from the top down, will originate with top management such as Steve Costa, the president, and John Costa, the director of operations. From the bottom, projects may rise from different users, or the project development group.
Projects include:
· Analysis of existing system
· Identification of needs (solving problems or expanding capabilities)
· Description of goals and objectives
· System classification
· Statement of work
· Baseline project plan
· Requirements structuring
· Generation and selection of alternatives
· Designing of interface and databases
· Coding
· Testing
· Installation
· Documentation
· Training
· Support
· Maintenance
14
3.3.6.5 Gantt ChartTask Name / Duration / Start / Finish / 05/15/02 / 05/20/02 / 05/27/02 / 06/03/02 / 06/10/02 / 06/17/02 / 06/24/02 / 07/01/02 / 07/08/02 / 07/15/02 / 07/22/02 / 07/29/02
System analysis / 1 / 05/15/02 / 05/20/02
Identification of needs / 1 / 05/20/02 / 05/27/02
Description of goals / 1 / 05/20/02 / 05/27/02
System classification / 1 / 05/27/02 / 06/03/02
Statement of work / 2 / 06/03/02 / 06/17/02
Baseline project plan / 2 / 06/10/02 / 06/24/02
Requirements structuring / 1 / 06/24/02 / 07/01/02
Generation of alternatives / 1 / 06/24/02 / 07/01/02
Interface design / 1 / 07/01/02 / 07/08/02
Database design / 1 / 07/01/02 / 07/08/02
Coding / 1 / 07/08/02 / 07/15/02
Testing / 1 / 07/08/02 / 07/15/02
Installation / 1 / 07/15/02 / 07/22/02
Documentation / 4 / 07/01/02 / 07/29/02
Training / 1 / 07/22/02 / 07/29/02
Support / ongoing / 07/22/02 / N/A
Maintenance / ongoing / 07/22/02 / N/A
14
4.0 As-is-system reports, forms, important documents, screen layouts.
The wall calendar that Quality Moving & Storage uses is similar to the following example.