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Project Proposal Sample: RFID on Warehouse Management System

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  • 1. Warehouse Management System on RFID System Integration Development A thesis submitted in partial fulfillment of the requirements for the degree of Master in Information Technology at Asia Pacific College by CHERI AMOUR P. CALICDAN 2013
  • 2. Revision History Revision Date Revised by Approved by Description of change Page 2
  • 3. Tables of Contents Revision History........................................................................................................................2 Tables of Contents.....................................................................................................................3 Introduction................................................................................................................................4 1.0 Project Goal.........................................................................................................................6 2.0 Problem / Opportunity Definition .......................................................................................6 3.0 Proposed Solution................................................................................................................8 4.0 Project Selection and Ranking Criteria................................................................................8 3.1 Project Benefit Category.................................................................................................8 3.2 Project Urgency...............................................................................................................9 5.0 Cost-Benefit Analysis........................................................................................................10 3.3 Tangible Benefits...........................................................................................................10 3.4 Intangible Benefits.........................................................................................................13 3.5 Budget Control Analysis...............................................................................................16 3.6 Financial Return............................................................................................................17 6.0 Business Requirements......................................................................................................21 3.7 Major Project Activities.................................................................................................21 3.8 Out of the scope activities that are critical to the project success ................................24 7.0 Major Obstacles.................................................................................................................24 8.0 Risk....................................................................................................................................24 9.0 Schedule Overview............................................................................................................26 3.9 Major Milestones...........................................................................................................26 3.10 External Milestones Affecting the Project...................................................................26 3.11 Impact of Late Delivery...............................................................................................26 10.0 Estimated Project Completion Date.................................................................................27 Page 3
  • 4. Introduction Supply Chain Management Supply chain management (SCM) is the term used to describe the management of flow and storage materials, information, and funds across the entire supply chain, from suppliers to producers to final assemblers to distribution centers (warehouses and retailers), and ultimately to the final consumer. In fact, it often includes after-sales service and returns or recycling. The product flow includes the movement of goods from suppliers to customers, as well as any customer returns or service needs. The information flow involves transmitting orders and updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements. Supply chain management involves coordinating and integrating these flows both within and among companies. Warehousing The warehouse is a point in the logistics system where a firm stores or holds raw materials; semi finished products, or finished products. By using warehouses, companies can make goods available "when" and "where" customers demand them. With the evolution of supply chain philosophies, strategic alliances, just-in-time; the last two decades have seen a new role for warehousing. Todays warehouse is not a classical long-term storage facility. Attention is given to the warehouse role in attaining the logistics goals of shorter cycle time, lower costs, lower inventories, and better customer service. Warehouses processes are being redesigned to achieve cost and order-processing goals and are being relocated to achieve overall customer service goals. Page 4
  • 5. Warehouse Management System (WMS)A warehouse management system, or WMS, is a key part of the supply chain and primarilyaims to control the movement and storage of materials within a warehouse and process theassociated transactions, including shipping, receiving, putaway and picking. The systems alsodirect and optimize stock putaway based on real-time information about the status of binutilization.Warehouse management systems often utilize Auto ID Data Capture (AIDC) technology,such as barcode scanners, mobile computers, wireless LANs and Radio-frequencyidentification (RFID) to efficiently monitor the flow of products. Once data has beencollected, there is either batch synchronization with, or a real-time wireless transmission to acentral database. The database can then provide useful reports about the status of goods in thewarehouse.The objective of a warehouse management system is to provide a set of computerizedprocedures to handle the receipt of stock and returns into a warehouse facility, model andmanage the logical representation of the physical storage facilities (e.g. racking etc.), managethe stock within the facility and enable a seamless link to order processing and logisticsmanagement in order to pick, pack and ship product out of the facility.Radio-Frequency Identification (RFID)RFID stands for Radio-Frequency IDentification. The acronym refers to small electronicdevices that consist of a small chip and an antenna. The chip typically is capable of carrying2,000 bytes of data or less.The RFID device serves the same purpose as a bar code or a magnetic strip on the back of acredit card or ATM card; it provides a unique identifier for that object. And, just as a barcode or magnetic strip must be scanned to get the information, the RFID device must bescanned to retrieve the identifying information. Page 5
  • 6. 1.0 Project Goal The project goal is to create a Warehouse Management System and integrate an RFID-based technology that can facilitate the automation of all manual processes within the warehouse. The system will prove beneficial to the company as it aims to reduce paperwork, eliminate human error and improve data accuracy, gain more control over the warehouse, increase speed and labor utilization, as well as to provide instant inventory and other types of pertinent reports. This Warehouse Management System is integrated with Radio Frequency technology that has the ability to communicate with specialized tags that are embedded in pallets, shelves and various locations (e.i. ingress and egress points) within the warehouse. Likewise, forklifts will also be equipped with intelligent terminals as well as an RFID reader and antenna to support automatic data scanning and storage location checking. With fixed RFID readers at ingress and egress points, mobile RFID readers on warehouse automation equipment, and RFID asset and location tags on waypoints and assets, the RFID Warehouse Management System will provide greater levels of automation, error reductions, and decision support.2.0 Problem / Opportunity Definition CSG Incorporated is a provider of warehouse and storage services. Located in Imus Cavite, the company’s warehouse facility occupies a land area of almost 8,500 square meters. This immense product depot houses nearly 200,000 stocks of various elements from blank product to blank product, which are delivered, disposed and accounted every day. Over the years, CSG Incorporated has relied on a paper-based and semi-automated system of inventory manned by over 65 personnel daily. This method of product tracking and classification has been seen as ineffective and inefficient as it reflects a significant probability of errors and inaccuracy. More so, the tedious process of manual inventory further narrowed the bottleneck in the facility’s operations; thus affecting the entire production cycle. Page 6
  • 7. Similar to many warehouse facilities, CSG Incorporated needs to streamline their currentwarehouse operational procedures. An automated warehouse management system (WMS)such as Radio Frequency Identification (RFID) is highly recommended to eliminate thesetbacks and improve productivity and control. In this system, RFID tags are attached toproducts in the warehouse. These tags wirelessly broadcast information about the productitself and its location; thus, providing accurate and real-time product identification in thesupply chain management and warehouse operations.The RFID system will improve warehouse maintenance and increase warehouse efficiency.This streamlining initiative will expedite mobility and categorization in the warehouse whileimproving accuracy in numerical data. More so, this provision can particularly reduce laborand logistic costs which have been identified as levers that pull the company’s profitmargins.From a paper-based scenario where a warehouse personnel has to manually check andencode products against the manifest, an automated and paperless tracking and checkingsystem will be in place. More importantly, from a tedious, time-consuming, and fallibleapproach, a faster and more precise inventory control will be rolled out. All of these will bemade possible through the technology of radio frequency (RF) communications embedded inthe RFID tagging system. Page 7
  • 8. 3.0 Proposed Solution The proposed solution is to create a Warehouse Management System with an integrated RFID-based technology that will improve the entire inventory handling process by providing an automated, systematic and accurate warehouse management cycle that is error-free, efficient and updated real-time. The warehouse performs four basic functions: (a) receiving of goods and other materials from a source, (b) inspection, storage, cross-docking and protection of goods, (c) retrieval of goods according to customer requirements, and (d) preparation of goods for shipping and transportation. To illustrate, pallets, cases, cartons and all other storage items in the warehouse will be RFID tagged, plotting them in the system back-end. These tags are recognized by readers installed in all the shelves, transporting equipments, and ingress and egress points in the warehouse. As a result, all movements of goods within the warehouse are tracked and accounted, use of space, equipment and labor is maximized, and retrieval of goods as needed becomes systematic- all these contributing to increased customer service, productivity level, and warehouse utilization.4.0 Project Selection and Ranking Criteria The utilization of this system will result to higher efficiency, reduction of cost and increase in revenue through the following: 3.1 Project Benefit Category INFORMATION AVAILABILITY Status updates of receipts, manufacturing requests, and customer orders are made available real-time. This gives warehouse management the responsiveness in managing activities as they occur; hence, changing needs are immediately addressed, labor is appropriately deployed, while space resources are maximized. Page 8
  • 9. LABOR PACINGCommunication between the system and the operator allows the system to pace theoperator from one assigned task to the next. The operator does not need to return aftereach task to a central location to get the next instruction. The system can select thenext task for an operator based on metrics and instructions applied (e.g. priorityqueue, capability of operator, schedule of tasks, etc.). The result is workloadmanagement that maximizes task accomplishment and minimizes labor idle time.MATERIAL TRACKINGRFID allows verification of all transactions that affect materials location. Thisverification updates status records used for future transactions, eliminates mostmaterial location errors, and provides immediate instructions for resolving errors thatare identified. Real-time communication allows the warehouse to operate moreefficiently. Storage locations that are emptied are immediately marked in the systemand assigned to incoming loads and goods.SECURITYShrinkage can be reduced with secure, item-level goods tracking, assuring that itemsonly leave the location when authorized. 3.2 Project UrgencyThe client is already in the process of acquiring a third-party provider for the neededRFID devices. Consequently, the proposed system has to be put into place as soon aspossible to avoid impeding the utilization of these devices. Page 9
  • 10. 5.0 Cost-Benefit Analysis 3.3 Tangible Benefits This project can provide the company with tangible benefits that can quickly and dramatically improve warehouse operations and increase material management efficiencies without adding headcount. By implementing an RFID-based WMS, the company will achieve a number of significant benefits. That includes the following: • Reduced warehouse labor costs • Reduced clerical labor costs • Reduced overtime costs • Reduced of physical inventories • Lower shipping/freight costs • Lower costs to rectify errors • Reduced equipment costs ASSUMPTION DRIVING VALUE Inventory Savings - Historically, firms have found that the deployment of WMS leads to significantly improved SKU by location, quantity, and lot accuracy as well as reduced safety stocks. Other inventory related benefits have also been realized as shown below. Area of Savings Description/Logic Savings Metric Reduction of Safety Stock - Eliminate extra stock, - Annual carrying costs increase turns - Improve cash use Reduction of Loss/Shrinkage - Tighter inventory control by - Product write-off cost location Reduced Shelf Life Losses Due to - Tighter inventory control by - Product write-off cost Expiration Issues lot Reduced Product Damage, Scrap - Minimized handling - Product write-off cost & Rework Reduced Returns - Shipping the right products at - Product write-off cost the right time Page 10
  • 11. Labor Reduction/Avoidance Related BenefitsThis category is typically the primary driver of ROI. Establishment of labor savingsrequires a thorough review and match of each current warehouse process against theprojected time/cost of process execution with the WMS and adoption of best practices.A sampling of labor cost reduction opportunities is shown below: Process Best Practice/Benefit Savings MetricPre-Receiving - Eliminates data entry - # hours/cost for indirect laborReceiving - Streamlined paperless - # hours/cost for receipt/inspection of goods via RF direct/indirect labor terminal. Reduced receiving/ labeling timeInspection - WMS directed inspection and - # hours/cost for system-wide holds direct/indirect labor - Streamline receipts, eliminate paper - Reduced cost of supplies holds and ticket generation (paper, etc.)Directed Putaway - WMS automatically selects and - # hours/cost for assigns storage location direct/indirect labor - Minimizes dead headingCross Docking - WMS automatically allocates stock - # hours/costs for and cross docks direct/indirect labor - Eliminate significant labor in - Storage space usage costs handling and storage and cost of storageWave Generation/Shipment - WMS organizes picks in optimal - # hours/costs for indirectPlanning sequence, builds truckloads. Reduce labor indirect labor for printing and sorting - Reduced cost of supplies of orders, and truck load buildingPick Preparation - WMS drives printing of shipment - # hours/costs for indirect sets in optimal pick path, by type, etc. labor Reduces indirect labor for paper - Reduced cost of supplies handlingPicking - WMS assigns picks via RFID - # hours/costs for indirect labor Page 11
  • 12. Equipment Related SavingsTaking labor out of an activity often results in the reduction or elimination ofassociated equipment. Equipment savings may include: Benefit Description/Logic Savings Metric Elimination of Excess or - Remove the operator….remove - Annual lease/rental cost Obsolete Equipment equipment - Eliminate leases/rental charges Page 12
  • 13. Eliminate Maintenance - Less equipment = reduced - Annual maintenance cost for Costs for Excess or Obsolete maintenance, parts and/or labor labor and parts Equipment Reduced Cost for Existing - Higher utilization rate leading - Annual maintenance cost for Equipment to lower per hour cost - Reduced per user costSpace Related SavingsA WMS should improve space use through better inventory deployment andconsolidation based upon advanced cube utilization algorithms. The resultant savingsmay occur in several areas: Benefit Description/Logic Savings Metric Eliminate Existing - More efficient storage based on - Lease/rental costs Overflow Space WMS storage optimization logic - Utilities, etc. Reduced Transportation - No shuttling product to/from - Transportation costs Costs with Elimination of overflow facility Overflow Space New Construction - Better utilization reduces - Lease/rental costs Avoidance requirement for new space 3.4 Intangible Benefits• Increase in organizational transparency and responsibility.• Accurate and faster access to data for timely decisions.• A wider reach in terms of vendors, thus producing more competitive bids.• Improvement in customer response time.• Significant decrease in time and effort needed in data entry.• More controls thereby lowering the risk of inappropriate utilization of resources. Page 13
  • 14. • Ease in gathering pertinent data needed for strategic planning.ASSUMPTION DRIVING VALUEInformation Systems Related SavingsIn assessing potential savings from a new Warehouse Management System, the costof the system being replaced must be considered. Typically, legacy WMS orhomegrown, host-based systems are expensive to maintain and upgrade. Use of newerpackaged solutions will eliminate the heavy annual investment in development and/orsystem administration necessary for legacy systems. Deployment of a WarehouseManagement System will also require one or more system administrators. Generally,however, when viewed against the backdrop of total IT administration costs, theutilization of such a system should provide overall lower costs. Area of Savings Description/Logic Savings Metric Reduced Legacy Support - Less IT support given efficient - Personnel costs operation of WMS Reduced Enhancement and - Greater functionality in the - Development costs Upgrade Costs WMS package Eliminate Legacy - Eliminate legacy hardware and - Lease & support costs Equipment/Software softwareEmployee Related SavingsPositioned as a productivity tool, given a well-managed training program, a WMS cangenerate substantial goodwill within the labor force and improve employee retention. Area of Savings Description/Logic Savings Metric Improved Morale & - Higher operational efficiency - Workforce turnover Reduced Turnover due to better attendance and - Personnel hiring costs individual performance - Reduced temporary labor Page 14
  • 15. Reduced Supervision - WMS directs high percentage of - Supervisory costs activities - Lower direct supervision Reduced Training - Less turnover due to desire to - Cost to retrain staff work with system - Lower training costs Reduced Accidents - Elimination of stock search - Accidents & related costs tasks - Reduced travel distances - Lower accident rateCustomer Service Related SavingsWhile perhaps difficult to quantify, lost sales or customer goodwill due to inefficientwarehousing operations has an economic effect. Nonetheless, every effort should bemade to quantify these costs. Ask sales or marketing for help. Area of Savings Description/Logic Savings Metric Increased Sales - Faster order processing and data - Incremental sales availability - Improved client relationships based upon better order inquiry response, turnaround, etc. On-Time Delivery - Improved order processing - Expediting costs based on required delivery date - Cost for returns processing - Minimize missed dates, lower returns Customer Satisfaction and - Access to WMS data for CRM - Incremental sales Improved Service purposes - Customer service costs Page 15
  • 16. 3.5 Budget Control Analysis PROJECT COST ESTIMATES Units/Hrs. Cost/Unit/Hr. Subtotals Totals % of Total1. Project Management 942,727.27 60% 1.1 Project Manager 640 681.82 436,363.64 1.2 Business Analyst 80 340.91 27,272.73 1.3 Dev Technical Lead / Sr.Web Developer 440 426.14 187,500.00 1.4 Web Developer 400 284.09 113,636.36 1.5 Web Designer 144 170.45 24,545.45 1.4 Sr. System QualityAssurance 360 255.68 92,045.45 1.5 Quality Assurance (tester) 360 170.45 61,363.642. Hardware 280,000.00 18% 2.1 Servers (Database) 2 280,000.003. Software 0.00 0% 3.1 Licensed software (IDEand Test Tools) Open Source 0.004. Testing* 4.1 Testing 85,000.00 5%6. Reserves(20% of total estimate) 249,545.45 261,545.45 17%Total project cost estimate 1,597,272.73* See mandays and Personnel Cost Estimate Personnel Cost Estimate Salary / Month Total Rate/Hour Total MandaysProject Manager 120,000.00 80 681.82 436,363.64Business Analyst 60,000.00 10 340.91 27,272.73Dev Technical Lead / Sr. Web Developer 75,000.00 55 426.14 187,500.00Web Developer 50,000.00 50 284.09 113,636.36Web Designer 30,000.00 18 170.45 24,545.45Sr. System Quality Assurance 45,000.00 45 255.68 92,045.45Quality Assurance (tester) 30,000.00 45 170.45 61,363.64 2,3 Total Mandays/ Resources 303 942,727.27 30 Page 16
  • 17. 3.6 Financial ReturnGetting the ROI of this project investment requires articulation of: • The total price of the solution including internal and external costs. • Recurring savings for target payback period. ( Annual savings figures ) • The required rate of return based upon internal standards for financial analysis; e.g., simple payback, NPV, etc. PROCESS SYSTEM INTEGRATION ROIInefficiencies managing Order dashboard / Decrease Costspaper pick tickets RF or voice pickingRandom inventory storage Optimize storage Decrease CostsReceiving to paper Purchase Order Handheld RF receiving Decrease Costs to Purchase Order real timeDifficulty locating product Real-time RF inventory moves for your Decrease Costs complete inventory visibilityShipping errors resulting in credit RF shipping verification to the actual Decrease Costsmemos & customer complaints order Increase SalesInefficiencies throughout the Increase fulfillment speed / Decrease Costsshipping process reduce overhead Increase SalesMisplace product Handheld RF real-time bin or location Decrease Costs transfersPhysical inventory time Increase inventory accuracy Decrease Costsconsuming Increase SalesSerial & lot tracking and shelf life Serial & lot tracking visibility Decrease CostsrequirementsReduce credit memos RF shipping Verification to the actual Decrease Costs orderSlow inventory turns RF or voice increases fulfillment speed Increase Sales to reduce overhead / increase turnsFreight costs Reduce expedited freight costs Decrease CostsRFID requirement Integrated RFID Decrease Costs Increase Sales Page 17
  • 18. This analysis should be undertaken as soon as the opportunity has been identified andsubsequently refined and recalculated upon package selection using the vendor’s finalcosts.ROI based on Key Performance Indicators KPI Definition Objectives Influential Readiness to Deliver No. of request Delivery service Order handling, delivered in due time customer satisfaction throughput, capacity No. of requests Warehouse fill degree No. of occupied Utilization of storage Inventory locations capacity management Storage capacity Transshipment level Retrieval Warehouse dynamics Size of shipping units quantitative Storage capacity Transshipment level Total turnover Inventory cost Ordering system quantitative Stored value Value-based Cost / Storage location Total cost Choice of warehouse Warehouse Storage capacity technology technology Inventory coverage Current stocks Inventory costs, Ordering system quantitative Warehouse turnover warehouse dynamics, service level Inventory coverage Stocks Inventory costs, Ordering system quantitative Warehouse turnover service level Value-based Picking way/item Average picking route Choice of picking Process control, Line items technology picking principle, information management Picking density No. of line items Average way times, Supply management Gripping space picking performance rack technology Page 18
  • 19. Financial Analysis Estimates ORDER FULFILLMENT MEASURES MEASURE CALCULATION TODAY FUTURE VALUE On-Time Delivery Orders On-Time % % ₱ Total Orders Shipped Order Fill Rate Orders Filled Complete % % ₱ Total Orders Shipped Order Accuracy Error-Free Orders % % ₱ Total Orders Shipped Line Accuracy Error-Free Lines % % ₱ Total Lines Shipped Order Cycle Time Actual Ship Date (minus) Hrs Hrs ₱ Customer Order Date Perfect Order Perfect Deliveries % % ₱ Completion Total Orders Shipped WAREHOUSE OPERATIONS PRODUCTIVITY MEASURES MEASURE CALCULATION TODAY FUTURE VALUE Order per Hour Orders Picked/Packed Order / Hr Order / Hr ₱ Total Warehouse Labor Hrs Lines per Hour Lines Picked/Packed Lines / Hr Lines / Hr ₱ Total Warehouse Labor Hrs Items per Hour Items Picked/Packed Items / Hr Order / Hr ₱ Total Warehouse Labor Hrs Cost per Order Total Warehouse Cost % / Order % / Order ₱ Total Orders Shipped Page 19
  • 20. Cost as % of Sales Total Warehouse Cost % % ₱ Total Orders Shipped INVENTORY MEASURES MEASURE CALCULATION TODAY FUTURE VALUE Inventory Accuracy Actual Qty per SKU % % ₱ System Reported Qty Damaged Inventory Total Damage $$$ % % ₱ Inventory Value (cost) Days on Hand Avg. Month Inventory $ Days Days ₱ Avg. Daily Sales/Month Storage Utilization Avg. Occupied Storage % % ₱ Fit Total Storage Capacity Dock to Stock Time Total Dock to Stock Hrs Hrs Hrs ₱ Total Receipts Inventory Visibility Receipt Entry Time – Hrs Hrs ₱ Physical Receipt TimeNet Present Value NET PRESENT VALUE YEAR ANNUAL SAVINGS NPV ¹YEAR 1 ₱ ₱YEAR 2 ₱ ₱YEAR 3 ₱ ₱YEAR 4 ₱ ₱YEAR 5 ₱ ₱TOTAL ₱ ₱ ¹Future Value =Projected Savings / (1 + interest rate)n Where n is the year in which savings occur Page 20
  • 21. 6.0 Business Requirements 3.7 Major Project Activities Stakeholder List STAKEHOLD PERSONNEL CONCERNS QUADRANT STRATEGY ER Warehouse Eluetero Ensuring proper Minimal Communicate project Manager Hernandez handover of business Effort specifications as required process documents to #09178546623 the development team Business Analyst Judi Anne Resource and Key Player Solicit stakeholder as member Supelana scheduling constraints of steering committee and for production once obtain feedback on project #09179023312 project is transitioned planning. Frequent to operations communication and addressing concerns are imperative Steering Joseph Ensuring on time Minimal Communicate project schedule Committee Nepomuceno delivery of materials Effort and material requirements ahead of time to ensure #02-8389985 delivery Project Cherie Mae Ensuing proper Key Player Solicit frequent updates and Coordinator Cirilo alignment of all develop plan for alternative activities on both the supply source #0932554864 development side and client side Project Manager Cheri Amour Product performance Key Player Communicate test results and Calicdan must meet or exceed performance specifications and current product obtain feedback on customer #09228447877 requirements or any changes. Provide frequent status reports and updates. Sr. Software Arian Dave Concerns regarding Keep Communicate resource Developer Mabanag resources to assist Satisfied requirements early and ensure project team with resources are released back to #09178237841 product design engineering when they’re no longer required System Quality Vincent Acero Questions regarding Keep Allow technical staff to work Assurance design of system Informed with stakeholder to answer #09245584136 questions and address concerns Page 21
  • 22. and provide test results for validationDefine System Requirements Specification1. System Architecture – A description of the network and hardware design for the solution.2. System Design – A description of the system flow and integration with internal and external systems that includes communication protocols, formats and frequency.3. System Process Flows – A collection of all the system process flows showing all the key points of system interaction and integration with internal and external systems.4. RF (Radio Frequency) Design Flow – A description of the RF flow and explanation of the logic including exception handling on each RF screen.5. Reports – A description of all the reports required (operational and planning). The details should include descriptions of all online reports, purpose/usage, intended audience, parameters and corresponding validations on screen, data extraction source and logic, report format/layout and report export requirements.Functional Requirements based on Business Requirements MODULE DESCRIPTION RECEIVING The receiving module lets you track the receipt of material from vendors or from internal production operations. Bar code labels may be produced for items, containers or pallets. If desired, items and quantities may be validated against an expected receipts list. Because the system is a real-time system, received material is immediately available to fill customer orders. Material may be set aside for crossdock, received directly to a storage location, or placed in a temporary staging location to be handled later with the Putaway transaction. PUTAWAY The Putaway module is used to move material from staged receiving locations to final storage locations. Based on system configuration, material may be moved to prime locations, locations holding like items, empty locations and Page 22
  • 23. more. Users may specify the Putaway sequence or use the systems suggested sequence which directs users through the warehouse in an optimized travel path.ORDER PICKING The picking module provides an extremely flexible and efficient method for picking orders without any paperwork. Many options are offered including order picking, group picking and zone picking. If desired, orders may be picked by priority or user-defined type (customer order, production order, etc.) Consistent with other sytem functions, the system suggests pick locations in an optimized travel path, and alternative pick locations are available at the touch of a key.PACKING AND SHIPPING The Packing and Shipping modules are used to box, verify and ship orders that have been picked. Packing lists and bar code labels may be produced to identify boxes and order contents.PHYSICAL INVENTORY The Cycle Count module can be used to verify inventoryAND CYCLE COUNT for a specific item or location, or it can be used to perform a complete physical inventory. Cycle counts, like other system tasks, may be performed in user-directed and system-directed modes. Inventory discrepancies may be corrected automatically and immediately, or they may be flagged for later review. Because the system is a real-time system, there is no need to "freeze" inventory during the cycle count process.REPLENISHMENT The Replenishment module lets you move material from bulk storage to forward pick locations that are running low on material. The system maintains maximum and minimum quantities for any desired item and location. As an on-hand quantity falls below the defined minimum, the system creates a replenishment requirement for that item and location. Users are later directed to move material to depleted locations.REPORTS AND The Reports and Statistics module will provide daily,STATISTICS weekly, monthly, quarterly and annual data based on all the information stored in the system’s database. Page 23
  • 24. 3.8 Out of the scope activities that are critical to the project success Activities that are critical to the success of this Warehouse Management System but are beyond the scope of this project includes the successful acquisition, installation, implementation and maintenance of all RFID devices. The system will be dependent on the inputs generated by the RFID devices since the system will gather all its data from the database populated by the said RFID devices.7.0 Major Obstacles The following are the challenges that are highly likely to be experienced related to creating and implementing this system:  The transition from a manual to an automated system will require extensive preparation specifically on the operations-side. Flows and processes should be thoroughly examined to ensure that the implementation of this wireless technology does not hamper operations, supply-chain and warehouse management in place.  Alignment of the RFID WMS with the primary business software must be rolled-out.  Procurement of equipment such as RF/barcodes scanners, portable as well as heavy duty printers, and the appropriate type of labels must be done after careful selection from various options, taking into consideration the adaptability of existing systems and software.8.0 Risk Although the implementation of an RFID WMS will greatly benefit key areas, there are still risks associated with the system. Primarily, if the RFID tags fail, the system will not be able to track the movements of goods inside the warehouse. Moreover, the following issues are considered risks: DEAD AREAS AND ORIENTATION PROBLEMS – RFID works similar to the way a cell phone or wireless network does. Like these technologies, there may be Page 24
  • 25. certain areas that have weaker signals or interference. In addition, poor read rates aresometimes a problem when the tag is rotated into an orientation that does not alignwell with the reader. These issues are usually minimized by proper implementation ofmultiple readers and use of tags with multiple axis antennas.PROXIMITY ISSUES – RFID tags cannot be read well when placed on metal orliquid objects or when these objects are between the reader and the tag.SECURITY CONCERNS – Because RFID is not a line-of-sight technology like barcoding, new security issues could develop. For example, a competitor could set up ahigh-gain directional antenna to scan tags in trucks going to a warehouse. From thedata received, this competitor could determine flow rates of various products.Additionally, when RFID is used for high-security operations such as paymentmethods, fraud is always a possibility.GHOST TAGS – In rare cases, if multiple tags are read at the same time the readerwill sometimes read a tag that does not exist. Therefore, some type of readverification, such as a CRC, should be implemented in either the tag, the reader or thedata read from the tag.HIGH COST – Because this technology is still new, the components and tags areexpensive compared to barcodes. In addition, the software and support personnelneeded to install and operate the RFID reading systems (in a warehouse for example)may be more costly to employ.UNREAD TAGS – When reading multiple tags at the same time, it is possible thatsome tags will not be read and there is no sure method of determining this when theobjects are not in sight. This problem does not occur with barcodes, because when thebarcode is scanned, it is instantly verified when read by a beep from the scanner andthe data can then be entered manually if it does not scan. Page 25
  • 26. VULNERABLE TO DAMAGE – Water, static discharge or high-powered magnetic surges (such as lightning strike) may damage the tags.9.0 Schedule Overview 3.9 Major Milestones  Define scope of project.  Identify stakeholders, decision-makers, and escalation procedures.  Develop detailed task list (work breakdown structures).  Estimate time requirements.  Develop initial project management flow chart.  Identify required resources and budget.  Evaluate project requirements.  Identify and evaluate risks.  Prepare contingency plan. 3.10 External Milestones Affecting the Project  Installation of all RFID devices.  RFID device implementation and testing.  User Acceptance of RF technology. 3.11 Impact of Late Delivery Delay in project roll-out will result to an increase in the project cost. This will also impact the usability of the acquired RFID technologies. Page 26
  • 27. 10.0 Estimated Project Completion Date Total production duration is (87) working days / (4) months. Please note that weekends and holidays are excluded in the schedule. Any public holidays and announced no-work day will affect our schedule and extend the corresponding deadlines using a ratio of one-is-to-one. (2) Months will be dedicated on product development. Time estimates is based on the initial Work Breakdown Structure (WBS). Page 27
  • 28. Work Breakdown Structure Mandays Resource1.0 Project Initiation 1.1 Develop Project Charter 1 Business Analyst 1.1.1 Identify Problem Statement / Opportunity (Business Case) 1.1.2 Meet with Stakeholders to identify Major stakeholders 1.1.3 Secure approval /sign-off2.0. Project Planning and Scoping 2.1 Business Requirement Specs 5 Project Manager 2.1.1 Data gathering / elicitation of requirements 2.1.2 System Requirement Analysis 2.1.3 Scope Specification 2.1.4 Peer Review and Phase Sign Off 2.2 Systems Requirement Specification 12 Dev Technical Lead 2.2.1 Analyze Requirement / Impact assessment / Web Designer 2.2.2. System Design 2.2.3. Data Modeling 2.2.4 Database Structure 2.2.5 Prototyping or Wire Framing / Preliminary Conceptual Design 2.2.6 Final Design Presentation 2.2.7 Phase Sign Off 2.3 Develop Test Plan and Strategy Project Manager / 2.3.1 Test Case / Scrip development QA Lead 2.3.2 Identify Resource and man-days 2.3.3 Identify Tools required3.0 Execution 3.1 Coding and Development 45 Project Manager / 3.1.1 Coding QA Lead / Dev Team 3.1.2 Build Release 3.1.3 Code Review 3.2.3 Unit Testing / Module Testing 3.2.1 Iteration Testing 3.2.2 Progress Archiving4.0 Quality Assurance 4.1 Final Quality Assurance 16 QA Lead / 4.1.1 System Testing Dev Team 4.1.2 Integration Testing 4.1.3 Performance / Load Testing 4.1.4 Use Acceptance Testing5.0 Implementation 5.1 Production and Implementation 5.1.2 Production Server Final Testing 5.2 User Training 3 QA Lead OR 5.2.1 Set Schedule Dev Team 5.2.2 Conduct Training Total Working Days 87 Page 28