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<Project Name> Project Proposal The version number starts at one and increases by one for each release. It shows the release number and a revision letter if in draft. The original draft is 0.A and subsequent drafts are 0.B, 0.C etc. The first accepted and issued document is 1.0. Subsequent changes in draft form are 1.0A, 1.0B etc.. The accepted and issued second version is 1.1 or 2.0, depending on the magnitude of the change. Version No: 10-03-2020 Copy: uncontrolled License URL:https://creativecommons.org/licenses/by/4.0/legalcodeattribution to:State of Tasmania (Department of Premier and Cabinet) 2017
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Document Acceptance and Release Notice This document is authorised for release once all signatures have been obtained. PREPARED:Date:10/02/2020 (for acceptance)<Harry Gayle> < IT head>, <IT department> ACCEPTED:Date:28/02/2020 (for release)<Chris Thomas> <CEO>, <Management>
Table of Contents Project Summary.........................................................................................................................11 Purpose................................................................................................................................11 Business and Policy Context.................................................................................................11 Working Title for the Proposed Project..................................................................................11 Objective(s)...........................................................................................................................11 Project Complexity................................................................................................................11 Potential Benefits..................................................................................................................12 Feasibility Statement.............................................................................................................12 Recommendation..................................................................................................................12 Business Assessment.................................................................................................................12 Situation Assessment and Problem Statement.....................................................................12 Options considered...............................................................................................................12 Consultation..........................................................................................................................12 Proposed Scope...........................................................................................................................13 Scope Definition....................................................................................................................13 Assumptions.........................................................................................................................13 Constraints............................................................................................................................13 Scope of Work......................................................................................................................13 Implementation Strategy.......................................................................................................14 Project Management Outline.......................................................................................................15 Governance..........................................................................................................................15 Key Risks and Issues............................................................................................................15
Project Summary Purpose The purpose of this document is to put forward the proposal on a specific topic and research on the same. The research can be proceeded with, on getting the approval from the IT manager or the members of the evaluation committee. The topic that has been selected for research purpose is Auto-Parts Warehouse. The objectives and research questions will be aligned to this topic and various aspects related to the same. Business and Policy Context Automation has been introduced in almost all sectors and this has been a growing need as because this reduces human errors. Warehouse automation cannot be considered as a recent development as studies suggest that first automated storage and retrieval system was introduced back in the year 1960. But it has not been so popular though getting developed that early. At present times, this research is important as with escalating growth of e-commerce there has been increase in land and labour costs; there has been a rise in customer expectations and many more such things. Customers want their products to be get delivered faster and thus it is high time that the warehouses be automated as depending only on manual processes will be of no help to meet the increasing demands of the customers. In this research, the concept behind the auto-parts warehouse will be discussed along with the varied possibilities of warehouse automation. The ways in which the system developed can help in the business will be focussed on mainly. The business problem is that there are volumes of information that need to be handled in a warehouse and which at time become difficult for the human resource available at the site. Thus the application that will be developed will help in handling the volumes of information and maintaining stocks related information. The processes that can be handled in the warehouse if automation is introduced will be discussed as well [1]. Automation in the workplace is a hot topic these days but this has to be analysed from different perspectives as there are both pros as well as cons in bringing in automation in a certain sector. There has also been a discussion on the need of policy that requires being there at the workplace for making it suitable to adopt automation in its operations. All these needs to be researched on and the way in which the auto-parts warehouse can help in making the work of the organizations easy is also to be found out. The advantages of adopting such technologies in the workplace and comparisons in between the scenario before adopting the automation technology and after adopting the technology will also be a part of this research. Working Titlefor the Proposed Project The title of the project requires being specific and should be so given that once reading the title provides the idea about the content of the project. This should be topic relevant and kept short but strong so that it gives the reader a brief idea of what he should expect from the paper. The working title of this project is “Developing an application for Auto-Parts Warehouse Management System”. The project title “Developing an application for Auto-Parts Warehouse Management System” conveys the message to the reader that he should expect facts related to auto-parts warehouse management system that can be how this system is going to work, how it solves traditional warehouse problems and what are the various attributes of this system. Objective(s) The objectives of the project are as follows: <Project Title> Project Proposal Version <n.n, dd-mm-yyyy> Page5
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1. To understand the benefits of the auto-parts warehouse management system to be developed. 2. To find out what changes need to be adopted so that the new system can be implemented. 3. To understand what complexities the business can face while implementing the project. Project Complexity The project includes automating warehouse operations thus there are many aspects that needs to be analysed such as the policies that need to be there in place to handle the various operations in the warehouse. Auto-parts warehouse is included in the large auto-servicing business that is there to provide scheduled services as well as maintenance to al the makes and associated models of different vehicles wherever it is practicable. A computer system is required for storing the records related to all parts that have been kept for various makes and models of different versions of cars. The supply levels needs to be maintained automatically and there stands a possible complexity. The complexity involved in this can be that suppose technical error crops up then there will be errors in the data stored and this can create problems in the operations of the warehouse. The automation of the warehouse thus involves various complexities and thus it needs to be discussed with the stakeholders [2]. The project involves a project team, project managers, executives, sponsors, different customers and various users. The project complexity needs to be discussed with the stakeholders so that they can provide their viewpoint on the same and work can be proceeded accordingly. Automations means relying on machines or software that is programmed for carrying out a specific task thus it involves various disadvantages as well. Automation involves digital transformation and thus is associated with IT operations mess. Innovation brings about both complexity as well as risk. New strategies are in general implemented without increasing the budget or deploying IT personnel who has adequate knowledge about the same. Thus, this can be grouped under the various complexities in a project as this has a serious or significant effect on the operations of a project. The IT skills of the existing employees’ needs to be analysed and their perspective understood so that project team can carry on with the tasks. Potential Benefits The potential benefits of the project are as follows: 1. The business can avoid disruptions in its operations caused by human errors. In this case the traditional warehouse management system will be replaced by a software application that will help in automating storage of the history of stocks present and each part will be provided with a trigger value that will send a message to the supplier whenever there is less stock so that the supplier can send the same [3]. Human errors in warehouse management have significant effects on the system and on the business as a whole. 2. The automation of warehouse will help in optimizing throughput which can be beneficial for the business. Customer retention is one of the vital aspects of a business and this can be achieved by adopting innovations such as auto parts warehouse system as this system will help the business in delivering the products in less time. The system to be developed intends to store retail prices along with the internal orders [4]. There are many things that are to be considered while developing the application and thus it can be said that adopting this technology will contribute to the smooth functioning of the business. <Project Title> Project Proposal Version <n.n, dd-mm-yyyy> Page6
3. The application will help the business to increase its productivity and ensure that materials are brought in and sold out efficiently [5]. Involvement of less number of people will ensure that safer operations are carried out and there are reductions in the inventory and various costs related to inventory. Feasibility Statement Incorporating automation system in warehouse is costly and the business needs to analyse its budget for the purpose for implementing this system. The system is feasible for companies such as Amazon, Walmart and other such companies but difficult for small industries. The business has to keep a budget plan ready and check whether implementation of this is feasible as per their budget and if found feasible they should carry on with the same [6]. Next important part that the business needs to consider is the return on investment and the flexibility associated with the same. The business requires hiring an analyst who will help them to understand how much return they should expect from this system. The preparedness of teams to handle the project can be another major concern in making use of the developed application. Thus it can be said that before going for automation of the warehouse the business should consider all these aspects. The business needs to invest a lot on the project and thus every aspect should be well evaluated to ensure that it does not fail in the venture. In this context it can be said that this is feasible as it is mentioned that the business is large. Thus the business can afford for implementing such an automation system. The return on investment in this case is also good as this system will indirectly help the business to retain customers [7]. This will help the business to deliver their products in less time thus contributing to the brand name of the business. Recommendation The system is highly recommended for the business as this will help it to become technology savvy. The various advantages of the new developed application will contribute in the growth of the business. The system is highly recommended as for the following benefits that it will provide: 1. Customizable- Warehouses can be transformed into a facility that can be used whenever the users requires it. This is not possible in the traditional system as it depends extensively on humans. The business can achieve flexibility as well as customization by implementing automated storage system [8]. This system will include provisions such as storing of retail prices and accepting internal orders which in the long run will help in organizing the work properly. The ordering system will be integrated in this and the public will also get a provision to access the catalogue containing details of different parts. 2. Cost effective- It is a fact that this system requires heavy investment but it cannot be denied that it has high return on investment. The sources that will effectively contribute to cost savings are as follows: a) Reductions in the costs related to labour and equipments. b) Reduction in wastage c) Costs related to maintenance will also be reduced. d) Reductions in the various requirements related to land use. <Project Title> Project Proposal Version <n.n, dd-mm-yyyy> Page7
3. Improves productivity- It is a obvious fact that as compared to the manual system, auto parts warehouse system will yield faster and more accurate results as manual labour will not be involved in this case. The system thus will become more efficient and handle the volumes of data related to different car parts in a proper and organized way. 4. Provides better inventory accuracy- The application will help in keeping a record of the orders and also have an ordering system [9]. Thus employees can focus on other critical areas such as fulfilling orders. 5. Optimizes order fulfilment- This will help the business to establish efficient picking processes, routes along with sequences for enabling better performance of the warehouse. BusinessAssessment Situation Assessment and Problem Statement The business still depends on the traditional warehouse system which functions in a non- automated way and extensively depends on human labour. At present the traditional system of warehouse is followed in which the operators are involved in moving the goods and it includes going to a collection point to pick parts or transport the same to somewhere in-house. The business makes use of manual handling system thus it can be said that it can go for automation. The system that is made used of is outdated and it does not support the dynamic growth of the business. In order to make the business adapt to the changing technology it is required that the it comes up with a plan that supports the objective of the project. The traditional warehouse is used for the car servicing and the parts of the car are kept so that when the customers ask for some parts for the servicing of the car then they can get the parts from the warehouse. The traditional warehouse is created in a non-automated way and the operations of the warehouse are done by the workers of the company. The current situation is a traditional warehouse that needs to be automated so that work is fast and they can provide excellent services to the customers. A traditional warehouse utilises manual handling system. No machines or technologies are used in order to perform the operations in the warehouse. The workers in the warehouse will do the activities in the warehouse [10]. Sometimes, the traditional warehouse can some sort of automation in the handling of the parts of the car those are too heavy for the humans to carry. They can use forklift trucks or conveyors that can upgrade the operations of the warehouse. Pallet tracks those are industrial, forklifts and pallet trucks can be used in order to run a standard warehouse. The warehouse is used for keeping the parts of the car that is used for developing a car. When the car requires servicing, the company can bring parts of the car those are used for the servicing. The objective is to build an application in order to automate the warehouse. An automated warehouse is a warehouse that has some technologies implemented in order to make the warehouse automated. The warehouses are designed with systems of retrieval and automated storage that include AS/RS for the boxes, conveyors and many more. Automation is a very high level set up and is scalable. It adapts to the systems of operations and every warehouse implement automation in order to make the operations better. Warehouse automation enables the operations of the warehouse in order to accomplish greater results with very less effort by the utilisation of more than one technology. The best solutions of warehouse automation are scalable and they offer a return of investment [11]. The warehouse can have two types of automation that is the process of the warehouse can be automated with the help of enterprise resource planning and the physical automation where various types of robotics such as robots are used in order to automate the warehouse and the procedures of the warehouse. These two automations will help to improve the automation of the traditional warehouse and provide excellent services to the customers. <Project Title> Project Proposal Version <n.n, dd-mm-yyyy> Page8
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Options considered The business can go for various options in order to control the present scenario: 1. Upgrading to right machinery- This includes introducing advanced tools that can help the employees in their work. Project management tools like Zoho and Odoo can help in managing the tasks at hand and can to some extent organize the orders and stock related details. 2. Implementing the software application- This application will help in bringing in automation it eh warehouse which is the preferred option and can be beneficial to the business. This can be said to be as the best way to deal with volumes of information and restructure the ordering process. Consultation . Stakeholders of the projectSummary of their views regarding the project Executive LeadershipThey are up for the project and want the business to bring in this innovation as there are various benefits of this system. IT leadersThe IT heads are little reluctant to shift to the new system as they feel that why put effort in this when manually it is being handled properly. Warehouse managersWarehouse managers are of the opinion that this is a good idea to automate the warehouse as this will lessen their work pressure. Sales managersSales managers consider this as a huge project and are in support of the same as this will help organize sales [12]. Having the record of the parts not in stock will help them. CustomersThe valuable or the oldest customers of the business are in for the project as they feel that by adopting this technology the firm will be able to deliver products in less time. <Project Title> Project Proposal Version <n.n, dd-mm-yyyy> Page9
Proposed Scope An application is to be developed in order to automate the warehouse system. The automation of the warehouse can upgrade the operations of the warehouse. It will reduce the expense of operation, protects the asset of the company and the reputation of the company, increase the efficiency and the productivity and maximizes the space utilization of the warehouse. The application will help to automate the warehouse. The warehouse management system comes with large number of functionalities that are meant in order to provide certain assistance to the workflow in the warehouse. The application will help the warehouse to do the operations in the warehouse without manual handling. The application can only be handled by the admin that is present in the warehouse. The admin can handle the application and the application can help the manager of the warehouse to see the stocks so that they can supply the parts when they are required. The application will alert the manager when the stock is going to finish. The system will help to generate reports based on the parts those are available at the warehouse. When new stock will arrive at the warehouse, the manager with the help of the application can upgrade the stock and when a specific parts in finished, the manager can remove the parts of the car form the application which means that the stick of that particular item is finished and it need to be filled. The basic procedures of the application include: Handling of the items inside the warehouse Receiving the items at the warehouse and ensuring that they are available Picking and shipping the items to the company who require the car parts for servicing. The application can also track the items that have been shipped to the company for servicing. The application will also help to automate the warehouse such as the technologies those are implemented in the warehouse that are the robots that help to do the activities in the warehouse. The warehouse can automate the procedures inside the warehouse with the help of the enterprise resource planning software that is the back office and the report generation will be handled and also the front end such as the customer services and many such things will also be handled [13]. This will help to provide excellent services to the customers and the warehouse will have good revenues and profits and they retain their customers Scope Definition Table <n>: <Project> Proposed Scope ElementDetail ObjectiveThe main objective is to develop the system as per the requirement and this should be aligned to the objectives that have been stated above. OutcomeEfficient inventory count, faster product delivery, quick processing of returns, reduction in mispicks and providing proper options to the customers. OutputData collected on the existing system, engaging the workers for brining proper changes, staying connected with the IT department, seeking clarity and taking regular updates on the work. QualityCriteriaThe relevance of the outputs with the project will ensure that this will fit the purpose of the project. Customer(s)The warehouse managers, the suppliers and the customers. <Project Title> Project Proposal Version <n.n, dd-mm-yyyy> Page10
Assumptions The main assumptions are: Resources- Resource are important in any project thus the business needs to find out the resources that are available to the for the purpose of development of the application and what they need to buy [14]. Schedule- The schedule of the work is another major assumption as this will decide on the success of the project. Scope- The scope of the project needs to be properly understood so that the work is carried out in a smooth manner [15]. Time- The project should be initiated after determining the time required to complete the project and it should be ensured that it gets completed on time [16]. Constraints The main constraints are: Deadlines- The various tasks related to the project should be completed on time so that the budget and the time finalized to complete the task do not get stretched. Aligning to project scope- Every step should be aligned to the scope defined as disgracing from the same will result in excessive cost and the project will not get completed in time. Time- This is seen as the main project constraint as failure or success of projects depend highly on the time taken to complete the same. Budget- The budget decided for the project should not gets stretched as this will be affect the project proceedings [17]. Scope of Work 1. Figuring out whether the business is ready for the automated system. 2. Understanding how this system supports the logistic of the company. 3. Putting someone in charge of the whole project from the time of its initiation. 4. Checking whether the automated system meets the performance specifications. 5. Get the supporting infrastructure in place. 7. Overlooking the various complexities of data migration. Implementation Strategy Table <n>: <Project Title> Project Implementation Strategy <Project Title> Project Proposal Version <n.n, dd-mm-yyyy> Page11
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ElementDetailIssues Project Schedule The project is expected to commence on <16/03/2020> and be completed by <16/05/2020> The issues can be estimating duration of various tasks, assigning relevant resources, managing the unknown parameters and setting the date of implementation. Budget Estimate The estimated budget will be $3.7 million. The budget is a major constraint in business and as it is estimated budget there can be changes in the decided budget and the final budget. <Project Title> Project Proposal Version <n.n, dd-mm-yyyy> Page12
Project Management Outline Governance As a minimum you will need in your governance structure a: Project Sponsor- The project sponsor takes the ownership of the project on behalf of the client company. He plays a vital part as he is one supporting the business with the required finance for developing the budget. Business Owner- The head of the company is the owner. Project Manager- The IT head is the project manager in this case as he is involved in forming the team, developing the artefacts and checking on the proceedings of the project. As the project evolves, assuming it is approved, you may add one or more of the following parties in your governance structure: Project Team- The team involves IT head, business analyst, engineers, software developers those who can lead this project in a direction that it is meant to be. Quality Manager- A quality manager needs to be assigned so that he can keep a check on the quality of the work being done in order to complete the project [18]. As this project is related to developing an application, the quality manager needs to be sound knowledge about software development and the work that is to be accomplished by this project. Key Risks and Issues These major risks or issues will be investigated further should the project proceed: Budget- This is one of the major constraints as there are many instances that projects have failed due to increasing budget [19]. This is generally the result of disgracing from the scope of the project.Time- The time which is decided while doing the first paper work of a project should be kept in mind as this is another major factor responsible for failure of the projects.Resources- The resources should be properly used and maintained so that no loss is incurred for the same [20]. <Project Title> Project Proposal Version <n.n, dd-mm-yyyy> Page13
References [1]. Z. Qiaohong, X. Xiaoxia and M.Yichao. Research on Multi-Objective Slotting Optimization for Automatic Warehouse of Auto Parts.Journal of Graphics, (2), p.27. 2015. [2]. M. Baghery, S. Yousefi, and M.J. Rezaee. Risk measurement and prioritization of auto parts manufacturing processes based on process failure analysis, interval data envelopment analysis and grey relational analysis.Journal of Intelligent Manufacturing,29(8), pp.1803- 1825. 2018. [3]. M., Miralam. Impact of Implementing Warehouse Management System on Auto Spare Part Industry Market in Saudi Arabia.Review of Integrative Business and Economics Research,6(3), p.56. 2017. [4].M. Chui, J. Manyika and M. Miremadi. Four fundamentals of workplace automation.McKinsey Quarterly,29(3), pp.1-9. 2015. [5]. P.K. McClure. “You’re fired,” says the robot: The rise of automation in the workplace, technophobes, and fears of unemployment.Social Science Computer Review,36(2), pp.139- 156. 2018. [6]. J. Bughin, E. Hazan, S. Lund, P. Dahlström, A. Wiesinger, and A. Subramaniam. Skill shift: Automation and the future of the workforce.McKinsey Global Institute. Retrieved on,10. 2018. [7]. H. Kerzner.Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons. 2017. [8]. J.R. Meredith, Jr, S.J. Mantel and S.M. Shafer.Project management: a managerial approach. John Wiley & Sons. 2017. [9]. J. Heagney.Fundamentals of project management. Amacom. 2016. [10]. K. Schwalbe.Information technology project management. Cengage Learning. 2015. [11]. R. Joslin and R. Müller. Relationships between a project management methodology and project success in different project governance contexts.International journal of project management,33(6), pp.1377-1392. 2015. [12]. H. Kerzner.Project management best practices: Achieving global excellence. John Wiley & Sons. 2018. [13]. T.L.Young.Successful project management. Kogan Page Publishers. 2016 [14]. M.M. de Carvalho, L.A Patah and D.de Souza Bido. Project management and its effects on project success: Cross-country and cross-industry comparisons.International Journal of Project Management,33(7), pp.1509-1522. 2015. [15]. A. Bucero, and R.L. Englund. Project sponsorship: Achieving management commitment for project success. Project Management Institute. 2015, October. [16]. M. Radujković and M. Sjekavica . Project management success factors.Procedia engineering,196, pp.607-615. 2017. <Project Title> Project Proposal Version <n.n, dd-mm-yyyy> Page14
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[17]. P. Eskerod, M. Huemann and G. Savage. Project stakeholder management—Past and present.Project Management Journal,46(6), pp.6-14. 2015. [18]. M.M.D. Carvalho and R. Rabechini Junior. Impact of risk management on project performance: the importance of soft skills.International Journal of Production Research,53(2), pp.321-340. 2015. [19]. C.E.M. Serra and M. Kunc. Benefits realisation management and its influence on project success and on the execution of business strategies.International Journal of Project Management,33(1), pp.53-66. 2015. [20].J.L. Brewer and K.C. Dittman.Methods of IT project management. Purdue University Press. 2018. <Project Title> Project Proposal Version <n.n, dd-mm-yyyy> Page15