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Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
Project Concept Plan
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Project Concept Plan

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  • 1. Preliminary Project Concept Plan Overview: Our objective is to create a system that provides contact-less order and payment to a point of sale terminal without verbal communication. This will be marketed to coffee shops, where repeat order volume is high, and increased order throughput returns greater profit. Our system will be able to retrieve a user’s favorite order and draw payment from a prepaid account. The ordering transaction with our system would be as easy as waving a small RFID device in front of an RFID reader and then collecting a receipt. Our system will be dynamic in that the order or payment is optional, and the order can be changed multiple times. Also, the Quick Order Pass will not change the existing POS terminal software. It will be an add-on to the existing POS terminal. Goals: Our main goal is incorporate QOP into all of Starbucks ordering systems, and to eventually replace the Starbucks Card. The Starbucks Card is a prepaid payment system that has achieved tremendous success. To date their have been 35 million cards sold. QOP, in addition to letting the user order and pay simultaneously, will also allow the user to limit the functionality as needed, by using only the payment feature, or only the order feature. So, our system incorporates the same functionality as the Starbucks Card but takes it a step further. In order to achieve this goal we will need to prove that our system is technically feasible and also financially feasible. Our technical goals are to produce a working lab prototype in phase I and then develop a production prototype in phase II.
  • 2. To achieve a working system we will need to develop the following software modules: a communication module to communicate with a central database and a POS terminal, an existing POS software program that is used by Starbucks (Xpient and Micros are the companies who provide this software to Starbucks), a module that interacts with the POS program’s API, and a module that can communicate with an RFID reader. The hardware needed would all be attained from COTS sources. Currently RFID transponders come in many different shapes and sizes, and RFID readers are abundant. Starbucks uses the IBM 4695 -322, Micros 8700 POS terminals, we would need to test on these terminals in Phase II and possibly Phase I. Micros Inc. has been contacted and is evaluating the donation of a terminal for testing. Further correspondence with Micros is planned. Starbucks central database, which holds the pertinent information for the Starbucks Card is currently being maintained by Value Link. We are planning for Value Link to maintain the database that our system uses. We want to use their existing database because adding the development, maintenance and security of a big database like this would require our scope to grow by almost an order of magnitude. Using their database would be as easy as adding a new field to their existing records which holds a customer order. A contractual agreement would need to be made in Phase 3 with this company in order for us to use their database. We have conducted a cost benefit analysis based on current information and estimated information. The following is a graphical representation of our findings:
  • 3. Hadware Installation Cost to Starbucks 8,000,000 7,580,000 7,000,000 6,000,000 5,210,000 5,000,000 1000 stores 3,790,000 2500 stores Cost (dollars) 4,000,000 4000 stores 3,000,000 2,370,000 5500 stores 8000 stores 2,000,000 948,000 1,000,000 0 1000 stores 2500 stores 4000 stores 5500 stores 8000 stores Number of Stores Transponder Cost to Starbucks 13,500,000 14,000,000 12,000,000 10,500,000 10,000,000 7,500,000 8,000,000 Cost (dollars) 6,000,000 4,500,000 4,000,000 1,500,000 2,000,000 0 5 million 15 million 25 million 35 million 45 million Transponders
  • 4. Starbucks Profit by Customer use (per fiscal year) 25,000,000 23,700,000 20,000,000 15,000,000 14,200,000 Profit (dollars) 9,500,000 10,000,000 4,730,000 5,000,000 2,840,000 947,000 0 1 percent 3 percent 5 percent 10 15 25 percent percent percent Customers using Tag Starbucks Break Even Analysis 12000000 10000000 9,500,000 8000000 6000000 Profit (dollars) 4000000 3,300,000 Series1 2000000 Series2 0 Year 1 Year 2 Year 3 -2000000 -4000000 -6000000 -6,200,000 -8000000 Year
  • 5. QOS, inc. Profit by Tranponder 4,500,000 4,500,000 4,000,000 3,500,000 3,500,000 3,000,000 2,500,000 5 million 2,500,000 Profit (dollars) 15 million 2,000,000 25 million 1,500,000 35 million 1,500,000 45 million 1,000,000 500,000 500,000 0 5 million 15 million 25 million 35 million 45 million Number of Transponders We have estimated this information from the following equations. Estimates based off Starbucks Net Revenue, 2003. 77% beverage sales 4.1 billion X 0.77 = 3.157 billion Time: 15-20 second range from statistics, we use 18 second average Sales increase 1% for each 6 seconds saved, therefore 18 / 6 = 3% increase in sales 3.157 billion x 0.03 = 94,710,000 million 94,710,000 assumes 100% customer use Scaled Values based on current Starbucks Card Customer use 1. Starbucks Card represented 10% of all transactions in 2003 2. Starbucks Card, 35 million total activated to date
  • 6. Profit potential (assuming 10% customer use): 94,710,000 x 0.10 = 9,471,000 million Potential Cost: 35 million x 0.30 = 10.5 million General Approach:  Weekly team meetings  Take minutes  Progress performance assessment  Schedule deadlines  WBS  Team status checks  Technical Progress and Reporting  Evaluation plan  Software development protocols  CVS – (Concurrent Versions System )  Design Documentation Contractual Aspects: Schedules: Phase I:
  • 7. Phase II: Phase III:
  • 8. Resources:
  • 9. Personnel: Phase 1: Organization 32 Phase 2: Prototype Development Organization Chart 36
  • 10. Phase 3: Production Organization Chart 40 Evaluation Methods:  Design Reviews  All design documents evaluated before implementation  Industry consultation as necessary  Documentation generated  Quality Reviews  Deliverables evaluated at each phase by team and independent testers  Post mortem evaluation of group process and effectiveness  Documentation generated  Testing
  • 11.  Testing at each stage of Research and Development  Independent evaluation of product  Documentation of testing process and integration  Beta-site testing  Product in real world environment  Customer feedback  Consumer feedback  Seamless integration
  • 12. Potential Problems: Risk Mitigation Likelihood Consequence Starbucks not Additional Low High interested market research - modify product High Cost Benefit High Medium component Analysis cost Transition Training High Low Security Device Low Medium Proximity Consumer Slight Low High Acceptance difference from current use

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