QUT PMN610: Woolworths Business Case - RFID Feasibility Study

This report presents a comprehensive business case for the implementation of Radio Frequency Identification (RFID) technology at Woolworths Limited. The study addresses operational challenges in customer service and supply chain, focusing on product shrinkage and asset management. The project objectives include improving customer service, enhancing data security, and optimizing inventory management. The report analyzes various options, recommending the faster RFID implementation with additional resources. It defines project scope, constraints, and deliverables, including key performance indicators (KPIs). The project approach outlines the project management strategy, structure, and governance framework. It also includes procurement and communication strategies, along with budget, program, and risk analyses. The report details a project schedule, cost plan, risk register, and benefits realization plan. The study also includes a stakeholder assessment matrix and financial analysis of options. The project is expected to be completed within 75 days with a budget of $90,000.

AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
Business Case
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
EXECUTIVE SUMMARY
This paper reflects the operational and functional issues that Woolworths Limited was facing
in the customer services and supply chain activities. In order to resolve these risks a study on
Radio frequency identification Devices (RFID), has been conducted and based on that a
feasibility report is presented to make sure whether RFID technology would be able to
beneficial for the company or not.
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
1 PROJECT NEED.....................................................................................................................5
1.1 SERVICE DELIVERY REQUIREMENTS.....................................................................5
1.2 ALIGNMENT WITH PROGRAM PLAN.......................................................................5
1.3 PROJECT OBJECTIVES.................................................................................................5
1.4 CRITICAL SUCCESS FACTORS (CSF’S)....................................................................5
1.5 ORGANISATIONAL CHANGE.....................................................................................5
2 OPTIONS ANALYSIS............................................................................................................6
2.1 OPTIONS CONSIDERED...............................................................................................6
2.2 OPTIONS EVALUATION CRITERIA...........................................................................6
2.3 OPTIONS DEVELOPMENT...........................................................................................6
2.4 OPTIONS EVALUATION...............................................................................................6
2.5 RECOMMENDED OPTION............................................................................................7
3 PROJECT DEFINITION.........................................................................................................8
3.1 SCOPE DESCRIPTION...................................................................................................8
3.2 CONSTRAINTS AND DEPENDENCIES.......................................................................8
3.3 SCOPE MANAGEMENT................................................................................................8
3.4 PROJECT DELIVERABLES...........................................................................................8
3.5 PROJECT KPI’S...............................................................................................................8
4 PROJECT APPROACH..........................................................................................................9
4.1 PROJECT MANAGEMENT STRATEGY......................................................................9
4.1.1 PROJECT STRUCTURE..........................................................................................9
4.1.2 PROJECT GOVERNANCE FRAMEWORK...........................................................9
4.1.3 PROJECT REPORTING STRUCTURE...................................................................9
4.2 PROCUREMENT STRATEGY.......................................................................................9
4.3 COMMUNICATION AND STAKEHOLDER MANAGEMENT STRATEGY............9
5 BUDGET, PROGRAM AND RISK.....................................................................................10
5.1 TIMING / PROJECT READINESS...............................................................................10
5.2 BUDGET/COST ANALYSIS AND FUNDING STRATEGY......................................10
5.3 RISK ANALYSIS AND MANAGEMENT STRATEGY.............................................10
5.4 PROJECT QUALITY MANAGEMENT STRATEGY.................................................10
5.5 PROJECT COMPLETION STRATEGY.......................................................................10
5.6 BENEFITS REALISATION PLAN...............................................................................10
6 REFERENCES......................................................................................................................11
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
APPENDIX A................................................................................................................................12
A.1 PROJECT SCHEDULE..................................................................................................12
A.2 PROJECT COST PLAN.................................................................................................12
A.3 PROJECT RISK REGISTER.........................................................................................12
A.4 BENEFITS REALISATION PLAN...............................................................................12
A.5 FINANCIAL ANALYSIS on OPTIONS.......................................................................12
A.6 STAKEHOLDER ASSESSMENT MATRIX................................................................12
A.7 **********.....................................................................................................................12
A.8 **********.....................................................................................................................12
A.9 **********.....................................................................................................................12
LIST OF TABLES
Table 2-1 | Project options...............................................................................................................7
Table 2-2 | Table 2 footer example – linked to contents.................................................................7
LIST OF FIGURES
No table of figures entries found.
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
1 PROJECT NEED
1.1 PROJECT NEED
 These days due to rapid and frequent advancement of technology most of the large
supermarket chains have started using technical excellence in terms of AI, RFID etc for
commercial growth and operational success. RFID is referred to as one of the most
effective ways for transferring data and monitoring service details. It is identified that,
success of any organization is dependent on its response abilities on customer
requirements and expectations. The company that has been nominated for the assignment
is Woolworths Limited. The retail chain is facing problems product shrinkage related
issues due to lack of visibility with assets in supply chain. It is determined that product
shrinkage issues are rising due to improper shipments, loss of product stock in
distribution centre etc. Asset management and RFID are the major technologies that
would help identify the operational and functional problems.
o This project is required because with the implementation of RFID technology
Woolworths Limited would be able to investigate unique data collected and also be able
to integrate automatic data gathered that can deliver real time logistic solution to improve
the customer service.
1.2 PROJECT OBJECTIVES
 To address potential operational and functional customer service related challenges
 To provide high level security to the database and data stored within the database
 To implement RFID technology for improving supply chain services and response
towards customers
o To give effective inventory management, ID badging and asset tracking opportunities
o To improve the personal financial data tracking
1.3 CRITICAL SUCCESS FACTORS (CSF’S)
RFIS benefits CSF implementation
Gives opportunity of accurate asset testing o Appropriate project scope development
and planning
o Accurate integration with of the IT
applications
o Proper teamwork
Gives better decision making power o Business profit in terms of Return on
Investment (ROI)
o Clearly defined business profit
Improves productivity and enhances visibility in
supply chain o Involvement of the users of Woolworths
Limited
o Proper project funding
o Development of proper project schedule
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
o Available trained IT staffs
o Proper use of project development
technology
Reduces operation cost o Clearly defined project planning and
development structure
o Positive ROI
Improves quality, competitive advantages and
overall business process o Proper business development technology
o Appropriate project planning and scoping
1.4 ORGANISATIONAL CHANGE
o With the implementation of RFID technology Woolworths Limited would be able to
improve their existing data capture capability with high level data security. It will
bring changes in organizational revenue with improved regulatory compliance. The
company would be able to improve the supply chain and customer services with more
upto date information and operational management process.
o The organization will provide better stock or asset control opportunities
o The data stored in the database will get high level security
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
2 OPTIONS ANALYSIS
2.1 OPTIONS CONSIDERED
1) Implementation of RFID technology faster with additional cost and resources
2) Implementing RFID keeping all the previous records unchanged
2.2 OPTIONS EVALUATION CRITERIA
criteria option (0%) option 2 (50%) option 3(80%)
maximum use of
resources
0% 30% 20%
allocating
maximum cost
0% 10% 30%
alignment towards
the development
policy and
procedures
0% 10% 30%
2.3 OPTIONS EVALUATION
criteria option (0%) option 2 (60%) option 3(90%)
Minimum use of
resources
0% 20% 30%
Minimum cost
allocation
0% 20% 30%
Completing
project in 6
months instead of
75 days
0% 20% 30%
2.4 RECOMMENDED OPTION
Among these two recommended option is:” 1) Implementation of RFID technology faster with
additional cost and resources”
3 PROJECT DEFINITION
3.1 SCOPE DESCRIPTION
 The retail supermarket chain Woolworths Limited is testing various technologies to
track the product shipment and service delivery approaches. The business will
become competitive and cost effective after implementation of RFID technology. The
scope of the project is to address the triggers for which the Woolworths retail chain is
recently facing major operational and functional issues in their customer services.
After identification of RFID technology, tracking, monitoring and controlling product
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
movement will become easier. Besides this, the other scope of this project is to
encode data into cipher text so that RFID tags can read the encoded text. The scope of
the project is to increase asset visibility for improving the overall rate of employee
productivity and services as well. It helps to mitigate risks of data loss and
information theft.
3.2 CONSTRAINTS AND DEPENDENCIES
For any scheme the specific scheme those are required to be considered by assigned associates in
terms of project cost, budget and time. Thus, it is essential for the supervisor to identify the
project scope, budget and time at the commence phase. In order to avoid the identified customer
service oriented issues or operational challenges the Woolworth supermarket has planned to
study of RFID application.
The total budget allocated for this project is $90,000 and the total time allotted for the scheme is
6 months. The supermarket maintains over 700 Safeway supermarkets including RFID tag
suppliers, telecommunication companies, integration specialists etc. As electronic tracking has
the ability to diminish the issues of wastage of stock by giving a better control and visibility over
the stocks.
3.3 SCOPE MANAGEMENT
In order to implement RFID technology in Woolworth supermarket chain the different stages
those are needed to be followed throughout development life cycle include detail business
operation and environment analysis, existing business process analysis, project definition,
selection of vendor, company’s economy analysis, analysing backup scenario, testing, pilot
implementation and deployment of full RFID system. The complete RFID incorporation
structure is
3.4 PROJECT DELIVERABLES
With installation of RFID technology to the customer services and supply chain process of
Woolworths, the company would be able to deliver a much faster and effective services to their
customers. The company will also gain commercial profit, global competitive advantages and
advanced security options in the supply process.
3.5 PROJECT KPI’S
Objectives Key performance Indicator
Must be completed within 75 days  Plan must be accomplished in the given
timeline
 Project needs to be tracked thoroughly
 super visor who will track the project
Budget of $90,000  Project needs to be completed in the
assigned budget of $90,000
 the project cost needs to be tracked
 the project manager need to supervise the
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
activities in details
To implement possible security mechanism  to implement encryption mechanism to
protect data from unauthorized access
 to make sure that so unwanted users are
capable to access information from the
server
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
4 PROJECT APPROACH
4.1 PROJECT MANAGEMENT STRATEGY
4.1.1 PROJECT STRUCTURE
In order to implement the RFID technology in Woolworth Limited, the structure needs to be
followed is elaborated in the below section:
 Project initiation
 Project planning
 Design and development
o Mapping out project process flow
o Selection of the mist exact technologies and hardware
o Initiation with pilot project
o Calculating cost and ROI for the RFID project
 Monitoring and control
 Project Testing phase
o Unit testing
o Integrated testing
o User acceptance testing
 Project closure
o Stakeholder signoff
o Submission of final project draft
o Post System maintenance program
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
4.1.2 PROJECT GOVERNANCE FRAMEWORK
Figure 1: Governance body of Woolworths Limited
(Source: Created by author)
4.1.3 PROJECT REPORTING STRUCTURE
Periodic reporting stages will be conducted followed by project initiation, planning, execution,
monitoring, testing and project closure phases.
4.2 PROCUREMENT STRATEGY
 Conducting internal requirement analysis of Woolworths Limited
 Assessment of the suppliers market
 Supplier’s information gathering
 Outsourcing project strategies development
 Bidding, negotiation and selection of the best builder
 Implementation of transition plans
 Supply chain and customer relationship management plan improvement
4.3 COMMUNICATION AND STAKEHOLDER MANAGEMENT STRATEGY
The details communication strategy is elaborated here those will help to keep all the stakeholder
engaged to their assigned responsibilities.
purpose who when medium Time Frequency
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