POSIE Project Charter - Group Assignment #1

Submitted by: Group #3

Dylan Alfarero
Parni Bali
Angela Sethi
Kumari Sivanesan
Basil Stergiopolous
Polly Szeto

PROJECT OVERVIEW:
Name: POSIE Project
Steering Committee Names: Bill Smith, Director, IT, Julie Compton, VP Manufacturing, Pete Stein, VP
Technology, Tejah Singh, VP Finance, James Carmen, President & CEO
Steering Committee Approvers: Bill Smith, Julie Compton, Tejah Singh
Project Owner: Bill Smith, Director, IT
Executive Sponsor: Julie Compton, VP Manufacturing
PROJECT DESCRIPTION
The merger of three well-established supermarket chains, Alpa, Beta and Gamma resulting in the
formation of Supersave, calls for a major project to be implemented. Supersave stores are in need of a new
system that enables the organization to carry out business in various parts of the world, specifically Europe
and Russia. Subdivided into five categories, the project coined POSIE, incorporates the development of the
system to be installed in each Supersave store location, development of systems within the server locations
(Europe), revamping 119 existing stores, constructing 21 new stores and the roll out of a store system to 140
store locations.
The project, when complete will allow real-time stock and item movement data to streamline essential
information from its store operations to its distribution and manufacturing centers. In addition, both back-end
and front-end applications (electronic point of sale) through the development of a new store system will create
effective and efficient customer service as well as timely execution of administrative procedures. With the
timeline set to its target, the project will ultimately place the Supersave brand in markets around various parts
of the world with a competitive edge through its innovative technology.

ANTICIPATED VALUE TO THE ORGANIZATION

Goal

Objective

Provide the organization with real-time stock and item

movement data to link its store operations with its food
and distribution manufacturing centers throughout Europe

- Inventory cost reduction of 25%

- Process inventory transactions in real-time to
achieve 99% accuracy of stock status
information

Enable automatic stock replenishment and price

management

- Organization to be notified when stock is low

on certain project, allows 70% faster stock time
- Organization to be notified when stock will
expire and should be put on sale, allows $5 000
per quarter to be saved on expired products

Shorten delivery and stock times with implementation of

new system

- Delivery time on low stocked products

decreased by 24-hours

Reduce employee labour costs

- Less manual labour to save $100 000 in

labour costs per quarter

Refurbishing 129 acquired stores, building 21 new stores,

and installing state-of-the-art computer systems

- Increase customer loyalty, interaction and

satisfaction by 50% with updated stores

Upgraded checkout system capable of performing multiple

transactions

- Allows for 75% faster transaction processing

DETAILS OF SCOPE OF PROJECT

In Scope:
- PM will manage the procurement (selection) of the vendor
- PM will manage the vendor's work
Deliverables:
PHASE 1
- Fully tested, bug-free store software system based on all requirements
- Integration plan to install software in existing stores and on country servers
- Installation plan for new stores
PHASE 2
- Alpha chain: replace front end systems & install backend systems in 17 existing stores
- Beta chain: replace front end systems & replace backend systems in 92 existing stores
- Beta chain: new technology in software to enable customers to do banking at store
- Gamma chain: replace and/or install backend systems & install front end systems in 10 stores
PHASE 3 (dependant on physical construction being complete):
- Install all software systems in new stores for Alpha, Beta & Gamma
-Test software systems
Out of Scope:
- banking functionality in Beta and Gamma stores

People Resources Required

Resource
Project Manager
Technical Systems
Analyst
Computer Networking
Engineer
Business Systems
Analyst
IT Technician
Quality Assurance
Analyst

Number of resources
required
1
1

Duration (months)

Salary

24
20

$350 000
$180000

22

$240000

15

$170000

5
3

12
3

$140000
$60000

Non People Resources

345 Registers
345 Scanners
140 Unix systems
14000 feet of cables
TIME ESTIMATES
Test Software- Months 1-3
Physical store investigation-Months 4-7
Develop detail map of floor layout, location of server, routers, switches, firewalls, IDS, IPS-Months 8-10
Cabling- Months 11-13
Equipment installation: Months 14-19
Load software application: Months 20-22

Testing and enablement: Months 23-24

Project Costs:
Chain

Estimate
d
Register
cost
($300)

Estimated
cost of
scanner
($100)

Estimated
upgrade
back end
system to
UNIX
platform
($100 per
store)

Estimate
d cabling
costs
($200
per
store)

Labor costs
(including
analysis,
equipment
installation
costs, testing
and
enablement)

Alpha

Register
cost:
345*$30
0
=$1035
00

Scanner
cost:
345*$100
=$34500

UNIX
upgrade
cost:
20*$100
=$2000

Cabling
cost:
20*$200
=$4000

$285000 (Sum
of labor
divided by 4)

Register
cost:
3160*$3
00
=$9480
00

Scanner
cost:
3160*$100
=$316000

UNIX
upgrade
cost:
100*$100
=$10000

Cabling
cost:
100*$20
0
=$20000

$570000 (Sum
of labor
divided by 4
multiplied by
2*)

17 stores
(approx. 15
lanes)

Total

$429000

3 new stores
(30 lanes)
Number of
lanes: (17* 15)
+
(3*30)=255+9
0
=345 lanes
Beta
92 stores
(approx. 30
lanes)
8 new stores
(50 lanes)
Number of
lanes: (92* 30)
+
(8*50)=2760+
400
=3160 lanes

*Multiplied by
2 because
Beta requires
more work

$1864000

Gamma
10 stores
(approx. 30
lanes)

Register
cost:
800*$30
0
=$2400
00

Scanner
cost:
800*$100
=$80000

UNIX
upgrade
cost:
20*$100
=$2000

Cabling
cost:
20*$200
=$4000

$285000 (Sum
of labor
divided by 4)

$611000

$129150
0

$430500

$14000

$28000

$1140000

$2904000

10 new stores
(50 lanes)
Number of
lanes: (10* 30)
+
(10*50)=300+
500
=800 lanes
Total

MAJOR RISKS
The major risks of any given project can be both external and internal. External risks include
governmental laws and market conditions. Internal risks pertain to the company and project proposal. The
probability and impact of these risks have the potential to terminate the project and thus, a risk assessment is
completed at the start of the project by the steering committee approvers while risk management is completed
throughout the duration of the project in the form of monthly status reports from the director of IT.
Internal Risks

Probability
(High, Medium,
Low)

Impact
(High, Medium,
Low)

Budget
-Economic conditions

Medium

High

Schedule
-Managing scope creep (Gantt charts, Critical path method)
-Penalty: late installation = CAD $20,000 per day

Medium

High

Employee Resistance
-Providing training courses
-Utilizing techniques such as phased/parallel adoption

Medium

Medium

Technology Requirements
-Implementing a companywide system of up to 50 checkout lanes in 1
store; efficiency/speed
-Capability of adding on additional checkouts 50 +

Medium

Medium

Store Capacity
-Ceiling/walls/floor space for cables and power for present and
potential future checkout expansions

Low

Low

MAJOR RISK ASSESSMENT DESCRIPTION

Risk Description Action

Management

Employee Resistance

Develop workshops to help employees

process a collective understanding of
the new system

Technology Requirement

Schedule

Budget

Scrutinize and optimize information

and communication technology
systems to enable effective
information management and key
activity team-working
Plan long-term strategic vision, with
detailed 2 year plan focusing on detail
to establish and measure actions
Use manual/automated tools to
generate a preliminary budget
estimate. Use of checklist to ensure
preliminary budgeting information is
covered