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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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
Sharing detail
project objectives
among the team
members
Project
supervisor and
other team
members
At the initiation
phase
Direct meeting 11:00
AM –
1.00
PM
Once
To split the ideas
based on feasibility
analysis
Project
supervisor,
finance manager
and finance
team members
At the project
planning phase
Face to face to
meeting
11.00
AM-
2.00
PM
Weekly
Roles distribution manager and
team members
Initiation face to face
meeting
12.00
PM-
3.00
PM
monthly
To discuss ideas on
system safety and
security
Project
manager, team
members and
CIO
project
development and
design phase
face to face
meeting,
conference and
presentation
11.00
PM-
2.00
PM
monthly
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
5 BUDGET, PROGRAM AND RISK
5.1 TIMING / PROJECT READINESS
The time and budget estimated for the project are 75 days and $90,000 which means that the
project is needed to be completed in the budget of $90,000 and time of 75 days to avoid
operational and functional risks. The project activities and detail schedule is elaborated in the
below section:
WBS Task Name Duration Start Finish
0 Schedule for RFID study in Woolworths Limited 73 days Mon 9/16/19 Wed
12/25/19
1 Project initiation 7 days Mon 9/16/19 Tue 9/24/19
1.1 scope statement development 2 days Mon 9/16/19 Tue 9/17/19
1.2 Feasibility analysis 3 days Wed 9/18/19 Fri 9/20/19
1.3 Resource outsourcing 2 days Mon 9/23/19 Tue 9/24/19
2 Project planning 15 days Wed 9/25/19 Tue 10/15/19
2.1 Risk management plan 2 days Wed 9/25/19 Thu 9/26/19
2.2 stakeholder management plan 5 days Fri 9/27/19 Thu 10/3/19
2.3 Installing RFID reader 6 days Fri 10/4/19 Fri 10/11/19
2.4 RFID network setup 4 days Fri 10/4/19 Wed 10/9/19
2.5 Identification of objects with RFID tags 2 days Mon
10/14/19 Tue 10/15/19
3 project design and execution 27 days Wed
10/16/19 Thu 11/21/19
3.1 Mapping out project process flow 10 days Wed
10/16/19 Tue 10/29/19
3.2 Selection of the mist exact technologies and
hardware 4 days Wed
10/30/19 Mon 11/4/19
3.3 Initiation with pilot project 5 days Tue 11/5/19 Mon
11/11/19
3.4 Calculating cost and ROI for the RFID project 8 days Tue 11/12/19 Thu 11/21/19
4 Project testing 15 days Fri 11/22/19 Thu 12/12/19
4.1 Unit testing 4 days Fri 11/22/19 Wed
11/27/19
4.2 Integrated testing 6 days Thu 11/28/19 Thu 12/5/19
4.3 User acceptance testing 5 days Fri 12/6/19 Thu 12/12/19
5 project closure 9 days Fri 12/13/19 Wed
12/25/19
5.1 Stakeholder signoff 2 days Fri 12/13/19 Mon
12/16/19
5.2 Submission of final project draft 3 days Tue 12/17/19 Thu 12/19/19
5.3 Post System maintenance program 4 days Fri 12/20/19 Wed
12/25/19
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
5.2 BUDGET/COST ANALYSIS AND FUNDING STRATEGY
Figure 3: Project budget
(Source: Created by author)
The project funding strategies those are to be followed by the project team while implementing
the RFID technology to the operational and functional activities of Woolworths Limited is as
follows:
 Signing contract or bond
 Revolved loan funding
 Consideration of sales tax
 State and federal grants
 Installing purchase financing approach
5.3 RISK ANALYSIS AND MANAGEMENT STRATEGY
It has been determined that RFID technology will enable the customer relationship management
and supply chain process of Woolworths Limited. The risks related to the RFID mechanism is
again classified into malicious attack risk and accidental risk. The privacy attack is used to
analyse the weaknesses in system defence. These attacks took place in the different network
layers such as application layer, protocol layer and physical layer. On the other hand, the types of
attack those can broadly and negatively impact the supply chain and customer services of
Woolworths Limited are DOS, Malware injection, eavesdropping, timing attack, EMP etc. The
detail risk treatment or risk management plan developed for the business case is elaborated in the
below section:
Risk
id
Risk name Impact Likelihood Score Mitigation strategy
R1 DOS attack high 4 Possible 3 high 12 In order to prevent the DOS
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
attack the CIO of Woolworths
Limited should pick or select
one of the top IT security
vendors.
R2 Lack of technical skills
among the users
High 4 unlikely 2 Medium
8
For ensuring the application
are running appropriately the
developers and other project
associates are required to
arrange online training and
development program to
improve the knowledge and
skills of the project team
associates.
R3 The budget allocated for
RFID implementation
project is $90,000
however with progress
time if the budget exceeds
preliminary prediction the
complete project will fail
meeting the primary
objectives and goals.
Medium 3 Likely 4 High 12 To avoid risks of over
allocated project budget the
project head should conduct a
feasibility analysis and present
the report to the project tam
associates
R4 Over allocation of project
resources
Medium 3 Rare 1 Low 3 Depending on complexity of
each project development
activity the resources should
be assigned to the individual
activity. For avoiding the risks
of resource over allocation
firstly accurate performance
analysis matrix are needed to
be considered and after that,
based on the performance
different resources are to be
assigned to each activity.
R5 Data loss Catastrophic 5 likely 20 Extreme
20
In order to avoid the risk of
confidential information loss,
the project associates are
required to use proper
encryption mechanism. With
the implementation of
encryption mechanism only
authorized users will be able to
access information.
5.4 PROJECT QUALITY MANAGEMENT STRATEGY
Project quality is referred to as an essential factor that helps measuring project success and
failure. Therefore, besides time and budget quality is another important aspect that must be
measured by the project associates to ensure the project success. Quality management strategy is
comprises of confirming quality standards, quality assurance plan, key responsibility distribution
plan and quality control plan. Two different quality methods are there such as process method
and appraisal method. Among these two methods, for the RFID implementation project the most
suitable model is pro cess model.
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
For ensuring that the project is feasible the developers and other associates should use process
model. This model includes use of specific quality management tools and techniques such as
calibrated control. Throughput the development life cycle, quality management strategy needs to
be maintained under change control. After that the quality responsibility needs to be classified
into three categories such as:
 Product producer
 Independent service and product review
 Final product approval
The quality register needs to be developed at the project initiation stages and followed
thoroughly. For successfully managing and executing the project the below mentioned stratgeis
are to be considered:
Managing internal control: Woolworths Limited should develop inclusive quality management
program based on the real time evidence collected related to the company operational activities.
Cost reduction: In order to improve the customer service performance, the company should
most effectively focus on process of cost reduction.
Regulatory compliance: While implementing the RFID technology, the managers must
maintain proper regulatory compliance obedience to legal rules, laws and legal guidelines related
to the business process because violation of the process often leads project towards federal fine.
5.5 PROJECT COMPLETION STRATEGY
In order to finish the RFID incorporation study and incorporation process in Woolworths
Limited super market chain, the strategic those are to be considered include: budget management
plan, time management plan, communication management, change management, procurement
management, acceptance management, risk management and quality management. Each of the
above mentioned factors are required to be properly completed to execute the RFID in the
company.
The other stages to be followed to execute the project successfully include:
 Defining scope of the project successfully
 Developing project team or selecting project team members
 Creating SMART project goal
 Daily project progress monitoring
 Carefully and wisely managing the project resources
5.6 BENEFITS REALISATION PLAN
Feasibility analysis is set of processes used by project supervisor and other team associates to
ensure that the nominated project is successful and commercially profitable as well. The project
outline, design and development must be done followed by the feasibility analysis report. In
other words, Feasibility report is used to validate the project constraints, assumptions, the
complete business case and the business decision as well. Benefit realization framework or
document outlines the activities necessary to achieve planned project benefit. The benefit
realization framework is mainly focused on development of a project timeframe and the
respective resources those are assigned to each activity to complete a specific project activity.
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
The main aim of developing a benefit realization plan is to identify, execute and implement a
long term sustainability plan for organizational success. .
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
6 REFERENCES
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Bach, M. P., Zoroja, J., & Loupis, M. (2016). RFID usage in European enterprises and its
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Bentahar, O., & Cameron, R. (2015). Design and Implementation of a Mixed Method Research
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Boeck, H., Lefebvre, L. A., & Lefebvre, É. (2017). Technological requirements and derived
benefits from RFID enabled receiving in a supply chain. In RFID Handbook (pp. 295-310). CRC
Press.
Dao, B., Kermanshachi, S., Shane, J., & Anderson, S. (2016). Project complexity assessment
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Fernando, A. S., & Jorge Jr, M. (2015). Cost assessment and benefits of using RFID in reverse
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Fescioglu-Unver, N., Choi, S. H., Sheen, D., & Kumara, S. (2015). RFID in production and
service systems: Technology, applications and issues. Information Systems Frontiers, 17(6),
1369-1380.
Fosso Wamba, S., Gunasekaran, A., Bhattacharya, M., & Dubey, R. (2016). Determinants of
RFID adoption intention by SMEs: an empirical investigation. Production Planning &
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Hu, X., Cui, N., Demeulemeester, E., & Bie, L. (2016). Incorporation of activity sensitivity
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Hubbard, B., Wang, H., Leasure, M., Ropp, T., Lofton, T., Hubbard, S., & Lin, S. (2015).
Feasibility study of UAV use for RFID material tracking on construction sites. In Proc., ASCE
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Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and
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Kukard, W., & Wood, L. (2017). Consumers' perceptions of item-level RFID Use in FMCG: A
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Qianli, D., & Zhang, M. Y. (2016). Usage of RFID technology in supply chain: Benefits and
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Riol, H., & Thuillier, D. (2015). Project management for academic research projects: balancing
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Schwalbe, K. (2015). Information technology project management. Cengage Learning.
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
APPENDIX A
A.1 PROJECT SCHEDULE
A.2 PROJECT COST PLAN
A.3 PROJECT RISK REGISTER
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AUSTRALIA'S WOOLWORTHS SUPERMARKET CHAIN STUDIES RFID
A.4 BENEFITS REALISATION PLAN
 Developing project scope
 Considering needful development tool and techniques
 Resource allocation
 Scheduling and cost benefit analysis
A.5 FINANCIAL ANALYSIS on OPTIONS
A.6 STAKEHOLDER ASSESSMENT MATRIX
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