Z, Inc. core business goal is to provide best of breed brokerage and logistical services to its clients. The CIO, Bob Braudy, believes Z, Inc. can improve operational productivity and increase business by introducing a Fleet Management System (FMS) that provides location-based services and near real-time traffic alerts on its existing enterprise network making information related to logistical services available to the company and its clients. Today, Z, Inc. has an enterprise network that includes a Web site as well as Intranet/Internet networking. The FMS system will integrate into the company existing Service Delivery Model as shown in Figure 1. The company presently uses the Internet and wireless technologies to send and receive text messages to its contract fleet of independent truck drivers to communicate.
The primary use of the Internet is to access an online directory, a Web-based e-mail system, and other applications and services. There is an opportunity to introduce a Fleet Management System to track independent trucking fleets to obtain real-time location, communicate using existing communication technologies (e.g. e-mail or cell phone networks for voice or data), and provide near real-time traffic alerts that can provide at least one alternate route. However, the introduction of a Fleet Management System will require new contract negotiations with independent truck drivers.
The benefit is that Z, Inc. can collect comprehensive fleet management data directly on any truck in the fleet from the onboard computer using GPS information for remote 24/7 tracking and location data, instant e-mail alerts, activity reporting, and near real-time traffic alerts. The investment is costly and subscription services will have to be transferred to independent truckers to share costs. The timeframe to integrate and implement the FMS solution is readiness for production roll-out within one year of approval.
Business Objective
Z, Inc. strategic goals include the continuing growth and profitability of the company. The Fleet Management System will support these goals by increasing productivity of the independent trucking fleet by allowing the company to increase visibility of logistical activities by tracking and locating trucks and client assets anytime, anywhere. The FMS solution will also provide near-real time traffic alerts. The FMS solution will also improve profitability by reducing downtime, lowering fuel and operational costs, and provide remote vehicle diagnostics which is advantageous to both the company and independent truckers. Because Z, Inc. is focused on identifying a profitable solution and measuring its value after completion, the project team must meet the stated criteria.
Problems and Opportunities
In order for Z, Inc. to gain a lead over competitors there is a need to improve logistical communications between the company and an independent fleet of truckers. The need to have a solution that can be integrated into the company’s existing enterprise that provides anytime, anywhere data 24/7 to track and visually locate trucks and client assets and near real time traffic alerts is crucial. A unified solution is needed that can integrate the existing tools such as laptop computers, cell phones and other handheld devices, and Global Positioning Systems applications used by the company and independent truckers. The solution has to be reliable in mountainous regions where satellite coverage may be spotty. The use of the Internet via landline and cellular networks to communicate with independent truckers lack the visibility needed to track and locate a large trucking fleet.
The need to select three OEM (Original Equipment Manufacturers) to participate in a RFP (Request for Proposal) has to be executed within 30 days during the planning of the project. During the 30 day period OEMs are invited to provide demo models and presentations of their products, including product roadmap for feasibility analysis. This is crucial to OEM selection.
Assumptions and Constraints
The proposed Fleet Management Solution must be a valuable asset for Z, Inc. Independent truckers must support the solution, and it must pay for itself within one year by reducing operating costs to the company and independent truckers and generate new business. The company has an enterprise network that consists of the various systems related to customer relations, human resource, finance, and so on. What is missing is an integrated approach to fleet management that includes location-based tracking, traffic alerts, and voice and data communications. Integrating a Fleet Management System into the existing enterprise network requires only integrating the FMS servers and operational database which does not require any programming or coding. Integration in this instance will require only connecting, configuring, and securing the FMS into the corporate Intranet. Internal IT resources can perform this work with support from the OEM vendor.
Currently, most OEM products offer GPS and location-based tracking, but automatic traffic alerts and alternative routing is a part of the product roadmap. To expedite the delivery of this feature Z, Inc. has to initiate a RFP (Request for Proposal) to candidate OEMs to design and integrate the traffic alert feature in advance of their present product roadmap which is scheduled in 3Q2011. The revision of the hardware platform that will be used to integrate the automatic traffic alert functionality is available presently. Some OEMs are currently negotiating licensing agreements with Automatic Traffic Notification Providers to introduce the functionality as a software upgrade. Z, Inc. expects to partner with one of the OEMs as an early adopter of the solution and therefore requires First Office Application (FOA).
The automatic traffic alert functionality will offer a competitive advantage as Z, Inc. will be first to market this before competition does. This is the area where Rapid Application Development (RAD) is required. Z, Inc. has to negotiate with OEMs about designing and integrating the missing feature, near real-time traffic alerts, into their solution. The OEM will use RAD (Extreme Programming or Scrum methods) to deliver the solution in 30-60 days. This is agreeable to our project timeline. Extensive input from Z, Inc. and the independent truckers is required to support RAD development in order to meet the listed timeline. Concurrently, the Z, Inc. Sales and Marketing Team has to negotiate an agreement with truckers to increase per load cost by 0.5%, which may require mediation to complete within 6 months. The solution will also provide Central Monitoring capabilities that can be viewed by the Z, Inc. dispatchers or the Network Operations Center (NOC). The business analyst team must lead the effort as a project team that requires participation from truckers, clients, and various parts of the organization. The solution must run on the company’s existing hardware and software, and integrate seamlessly into the trucker’s existing tools and applications. The solution should also require minimum technical support. It must be user friendly and must be easily accessible by end users, truckers, and clients and yet secure from unauthorized users.
Alternative Solutions
Options and Recommendations
There are three options for addressing this opportunity:
- Do nothing. Z, Inc., is doing well, and can continue to operate without a FMS project.
- Purchase an FMS-specialized software and hardware application to support this new capability with little in-house development.
- Design and implement a FMS capability in-house using mostly existing hardware and software. Based on the time constraint, availability of new technology, and in-house intellectual assets, we believe that option 2 is the best option.
Project Requirements
The main feature requirements of the Fleet Management System include the following:
- Tracking of trucks. Z, Inc. must be able to track the location of the trucks and therefore GPS position information is recorded for real-time location that can be mapped using digital mapping software or satellite imagery for real-time status and location, and visually displayed on a personal computer at the company dispatch center.
- Near real-time traffic alert. Independent truckers must have the capability to receive advanced notification of traffic conditions. In addition to giving directions, the applications must offer live traffic information and alert the drivers to bottlenecks, roadwork and accidents before the drivers get to them. Plus the traffic alerting must be able to respond with at least one alternate route.
- Central Monitoring and Tracking
- Other function?
Budget Estimate and Financials
Risks and Opportunities
The primary risk in wireless communication is a down-time in transmission. The possibilities for this may come from several sources, and forethought in fabricating a backup plan in each case would keep uptime to a maximum. Those situations that may cause downtime in communications occur in each of the phases of transfer:
- Computer-based crashes and offline conditions create a first-level downtime, since the origination of the messages becomes halted without Internet applications. A supplemental computer system, in another department or location, supplied with identical software applications and hook-ups, would be functional as a secondary service base for dispatch in the case of computer breakdowns.
- ISP downtime is less likely but still possible. Including a backup plan, as simple as a dial-up phone connection to another service provider, would mitigate interruption to fleet truckers while in route.
- Application interruption may occur when using the Internet as medium to transfer data to truckers. The outsourcing of traffic flow from a third party is highly reliable, depending on the source, but not always guaranteed for 100% access time. A secondary option such as MapQuest traffic online, or direct reading from Google traffic, would supply the Z Inc. dispatch with information that would be used manually in situations that require human interface.
- Trucker-systems breakdowns are likely to be rare, but expected to happen over the course of a year. This would be a realistic viewpoint by Z Inc. when calculating the number of trips booked annually, the size of the fleet at any one time, and the number of miles traveled per contract. Implementing a secondary transmission unit per truck is not out of line, when considering the likelihood that each independent trucker already owns a laptop as well as a cell phone, with alternatives such as a Blackberry unit or RFID already installed with the assigned load.
The target result in fabricating a backup system to each phase of communications is to maintain a constant communication between Z Inc. and the assigned fleet. The multiple phases of data transfer require dissection of each step, from origination of data transfer at dispatch to the traveling side of the contents, between initiation of trip and end of cargo transfer.
Risks and Mitigation
Operations
Performance standards that support 99% up-time for day-to-day operations; Service level agreement that delivers performance levels of 99% or better of the time and fulfill 99% of its transactions on-time with minimum delay. How well the supplier manages risk factors associated with processes and handling fault conditions related to service interruptions.
Security
The solution takes special precautions to guard against security risks such as breach of wireless transmissions and tracking systems that can compromise the whereabouts of truckers in transit.
Risk associated with contract independent drivers acquiring 0.5% percentage ownership cost of new technology added to each load must be negotiated on a short term basis as economic conditions govern the direction of costs.
Cost of licensing technology and the need to choose from a couple of alternative business models that best fit the company business needs. In terms of financing, determination about how much money is needed for investment and selection of a strategic investor.
Mitigating this factor…
Technology
Integrating company IT infrastructure to hosting provider as the need to maintain data security is essential. Flexibility of hosting provider service capabilities, cost, and performance are required. Technological advances and platform migrations through modernization, delivering next generation software to remain competitive are necessary. The technical architecture i.e. computing equipment, connectivity to the Internet, facilities, management services, and Internet security services (firewall protection) is important. Risk the software would be unable to meet business long term requirements due to scalability.
Voice and Data Communications
What should this feature of the product do? Describe how the existing voice and data communications can be integrated into the FMS solution.
Project Success Criteria
Team–B goal is to compete the FMS project within 1 year at a cost of no more than $X,000,000.00. The project sponsor, Dr. Bob Braudy, has emphasized the importance of this project improving productivity and revenue growth, and paying for itself by transferring costs to independent truckers. To meet the financial goal, the FMS must have trucker’s input and approval. It will be necessary to capture survey data from field testing and after rollout. The project is constrained by a 1 year timeline and should the project take longer to complete, Z, Inc. will then evaluate the success or failure of the project. If the solution provides good results in improving productivity and logistical efficiencies and helps promote a positive image to our clients as a best-of-breed Freight Forwarding and Brokerage firm, then the project will be a success.
Tests and Validation
A random selection of 100 independent truck drivers will perform an initial evaluation of three vendor products during the RFP period, and 30 days prior to integrating the final solution. The purpose is to evaluate the vendor product on the basis of features, functionality, and reliability for a period of thirty days before and after integration. Fleet Management Systems are mature commercial products, currently offering global positioning and location-based tracking. The development portion of the project is to develop near real-time traffic alert functionality. Near real-time traffic alert functionality has to be integrated into the vendor product and field tested by truckers for a period of 30 days prior to rollout. Testing of …
Internal and External Stakeholder
An important part of the project charter is the signature approval and individual comments of key stakeholders. Another important part is to get stakeholders to agree on the project charter. Key stakeholders are encouraged to communicate their concerns to be documented and addressed within the project. Z, Inc., considers this project to be a high priority and all resources committed to the project are expected to be assigned for the duration of the project. Testing and validation of the features, functionality, reliability, and security issues are major concerns that have to be considered within the project.
Governance
Discuss various aspects of governance from a project perspective… What ethical issues should the project consider? What are some of the organizational rules and practices to be followed? What are Z, Inc., and Vendor responsibilities to the truckers and the public? To ensure integrity and professionalism what laws and policies should be follow?
"For most very important projects I consider governance structure to mean those executives (C-level) and managers from the company who are directly affected by/responsible for ensuring the project is successful. The governance board provides strategic oversight and guidance which includes necessary policies and resolving decisions that cannot be made at the operational (project management) level. The governance group should be relatively small (a handful of folks, but who?). In this situation, the individual who is project managing the entire project should be a member of the board.” (Dr. Bob, Team B post)
Project Closure
As was described earlier, Fleet Management System is designed in order to ease and improve Z, Inc. performance. It will provide company with the modern and developed tools, which will strengthen its competitive advantage. The process of introducing FMS into the company’s system is crucial yet complex and includes many details, which should be considered. Therefore, in order for the project to be successfully completed, several objectives and activities have o performed.
First of all, since the introduction of FMS in a number one priority for Z, Inc, it needs to concentrate on this project, using all the available resources. All the departments have to perform their tasks in the time periods, which were stated above. There should be no delay in any of the required activities. People from different departments must be assigned to work on this project and provided with all the necessary information and resources.
Second of all, the beginning of all the necessary internal activities should be followed by contacting and meeting the parties, which will be involved in the project development. Those parties are manufacturers and end users. Project initiators must communicate the conditions of the contracts with the vendors and suppliers, who will provide the company with the devices. Since there are five products, which will be developed for the project, each product’s criteria must be discussed. Since end-users will be involved in the financial part of the project, this is crucial to communicate all the conditions and terms with them. All the details must be discussed and contracts are signed in order for the project to move on. It is important that all the time-frames will be followed and all the deadlines met.
Next activity, which should be performed by the team, includes the financial estimation of the project. After performing a second task, the worthiness of the project will be more comprehensible. Financial department then will need to work on the budget and allocation of resources.
Finally, devices must be accepted and tested. It is crucial to make sure that one of the products, which is completely new, will be checked for a quality. All the products must function properly without any technical failures. This is the last step in the project before installing the system and presenting it to the end users. Z, Inc must make sure that all the products and devices will be delivered to the customers in the best condition and perfectly functioning.
The project will be considered to be completed successfully in case all the activities will be performed accurately and will meet all the deadlines. The major objectives of the project, which include delivering faster and more convenient logistics solutions to the customers, will be attained through the collective and dynamic work of the projects’ members.
Any deviation in the initial instructions, which are stated in the project proposal, must be communicated with project managers, sponsors and all the stakeholders. In this particular project, which needs to be completed within the limited period of time, project’s team might be faced with certain challenges, which will have to be resolved with the minimum risk to the completion of the project.
Final report will provide project’s stakeholders with the detailed description of the processes and activities, which will be performed during the project. It will illustrate in what sequence all the activities were performed. Report will include all the challenges, which the project group was faced with, and it will then explain how those challenges were eliminated. Final report of the project will be designed in order to give a clear picture of how a project like this must be completed, and what problems might occur during the process. This will mainly be done in order to better understand the nature of such project in the future.
Conclusion
Z, Inc has developed a plan of finding easier and more convenient logistics solutions for their customers. Company has not only found a solution for delivering better quality service to its customers, but also found a way to gain a competitive advantage over its competitors in the market.
The project is concentrated on an introduction of a new system, which will allow Z, Inc products’ end users to enjoy the simplicity and convenience of their design and new features. Innovations will include such features as: 24/7 real-time vehicle location, detailed activity reporting, on board diagnostic data, near real-time traffic alerts, and interfaces to Z, Inc. enterprise databases. Almost all of these features are comparably new in delivering business and will definitely serve as a great tool for logistics companies’ costs reduction.
Above stated project proposal has offered a plan, which will assist Z, Inc in achieving its goal and successfully introducing Fleet Management System into its routine. It has described the major and most important steps, which should be made in order to conclude this project. Departments, which must take part in this project, were listed together with their major tasks and responsibilities. Due to the urgency of the completion, project managers have estimated and set the deadlines, which must be met by the team.
The most important section of the proposal is the objectives, which need to be achieved by this project. It describes the necessity and importance if such an innovation both for the company and its customers. The objectives are mainly concentrated on improving both performance of Z, Inc in the market and increasing its competitive advantage and on providing products’ end users with comfortable and effective solutions for their logistics issues.
The proposal also included the description of each tool, which will be introduced to the system and their advantages. It claims that the new system with its innovations will change logistics practices and results and will bring them to the next level. This claim is mainly based on the explanations of each product’s functions and abilities.
The paper gives a clear and detailed picture of how the project is about to be performed. It includes covers such important points as objectives, tasks, people and departments involved, budgets, etc in order for the investors and stakeholders to understand its nature and necessity of its completion.
