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In 2011, Auto Retailers, Inc. decided to implement RFID technology for tracking inventory in their warehouse. This initiative, led by CEO Pedro Gonzalez, aimed to resolve issues such as lost shipping labels and improper inventory management. The project, granted to ABC Corporation, includes the installation of RFID systems, employee training, and ongoing service without disrupting current operations. With a budget of over $1 million, the goal is to improve order tracking, efficiency, and overall warehouse management by May 2013.
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Auto Retailers, Inc. Pedro Gonzalez Kyle Grube Sean Kwedar
Background Information • 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.
What’s RFID? • Radio Frequency Identification • Smart tags that can be used for tracking.
Current Problems with system • 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)
Main Objectives • Implement RFID “smart tags” • Track containers movement • Create a database • Train all employees
Project Charter • 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
RFP • 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%)
Proposal • ABC Corporation – Towson, MD • Ranked top tech companies in the world • Problem • Solution • Benefit • Objectives • Experience • Schedule • Costs
CONTRACT • 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
Project Constraints • 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
Activities • Develop team • System Analysis • System Design • System Development • Integration and tests • Training • Monitor and Service System
Resources • People • Capital • Information
Methods for Project Control • Reconfirmation of plan • Assess the performance of the tasks • Take corrective actions • Keep project team motivated
Critical Success Factors • 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
Conclusions • 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