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IS480 Team wiki: 2010T2 Cowabunga

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Team Formation

Cowabunga Team Explained

- input logo here
- explain a little bit

Members (Roles and Responsibilities)

Role Name Email
Project Manager/Business Subject Matter Expert Loh Chong Ghee (Jackson) cgloh.2008@sis.smu.edu.sg
Assistant Project Manager/Liaison Officer Ng Kiang pin kiangpin.ng.2008@sis.smu.edu.sg
Business Analyst Danny Seow Liang Cong danny.seow@gmail.com
System Analyst Mohamed Saiful Bin MOHAMED NAJAIB msaiful.mn.2008@sis.smu.edu.sg
Assistent System Analyst/IT Subject Matter Expert Seetoh Yong Chuen (Lex) yc.seetoh.2008@sis.smu.edu.sg
Design Architect Bevan Tan Junming bevan.tan.2008@sis.smu.edu.sg

Stakeholders

Supervisor: Li Yingjiu
Client/Sponsor: Chee Song Frozen Food Pte Ltd
Contact Person: Ms Tan, Manager


Company Background and Formation

Introduction of Company (Client/Sponsor)

Chee Song Frozen Food Ptd Ltd is a 14 years experienced whole-seller company in Singapore.

Being a wholesaler in the frozen food industry, Chee Song is position at the heart of the entire supply chain. Their main administrative departments have to manage two main sets of stakeholders, namely the suppliers as well as the retailers. Inventory products such as frozen chicken stocks, muttons as well as beef are ordered from the suppliers on a daily/ weekly basis. Different suppliers offers different sets of products which varies prices on a daily basis (based on market supply). Because of the extensive product range and quantity of orders, plus limited storage space, much consideration are taken before finally placing orders with the suppliers.

The second major stakeholders of the supply chain would be the wet market retailers. The retailers are basically the revenue spot of the company. They order from Chee Song wholesaler on a daily basis. It is also important to note that order quotient for different stores varies differently as well. The following illustration is a simple highlight of the flow of supply chain in the Chee Song Frozen food.

Operations Background

Situated in Jalan Masjid is the main distribution point. This is where the packing and assembling of products based on retailers orders are done. Once the orders are properly assembled, they will be distributed by the company trucks to the various retailers (customers). As inventory in the distribution center is running low, they will send daily request form to the two warehouses to restock the distribution center. Ensuring that there is always sufficient inventory.

There is another two main warehouses that are situated within 5 minutes drive away from the distribution center. This two warehouses stores all the frozen inventory. Each day new containers from the suppliers will arrive and restock the warehouses. Due to the current implementation, there are high probability of overstocking the warehouses that results in extra expenditure as inventory has to be sent back to the suppliers and kept in the warehouses.

Current Workflow Diagram

Root Cause Issues and Problems

Key Objective and Motivation

Our key role is to analysis and finally implement an IT solution that align with their business requirements. The key ob- jective for is implement an IT solution that provides greater inventory control and improve the operation of Chee Song.

Key Objective: Provide greater inventory control and improve the operation of Chee Song.

Proposed Solution (Scope)

Introduction of Warehouse Optimization & Resource Management System (WORMS)

After analyzing the workflow of the company and the key issues experienced. Our team recommend the implementation of ‘Warehouse Optimization and Resource Management System’. The customized system will supports two key business tier, namely; the Resource Management business layer and the Warehouse Optimization business layer.

1. The Resource Management System - allows Chee Song to track each transaction of inflow and outflow of their products from their warehouses, also provides current inventory tracking and status alert. Another important module is the support of business analytics where intelligent graphs, charts and statistics will be populated to aid business decision making for restocking inventory.

2. Warehouse Optimization - a smart and intelligent recommendation of warehouse optimization for Chee Song. The system will allow the blueprinting of the entire floor plan digitally onto the system. From a blank canvas, the system will populate the best optimum area to arrange the warehouse and store particular products based on the following parameters; 1) Product’s moving frequency, 2) Expiry Date, 3) Type of Products, 4) Size of Products, 5) Temperature requirement for Product, 6) AVA-Status of Product. Our team will be utilizing the Linear Programming algorithm to facilitate optimization. This providing a sound and proven mathematical formulae to recommend our users.

To-Be Work Flow Diagram

-diagram for the current work process

Topology Diagram

Our main deliverables to our client is to finally able to deploy a warehouse optimization and resource management system that will enable them to solve the three key issues that we have earlier highlighted.

The following diagram is a topology of our project, highlighting the different areas as well as the key users that will be using our proposed IT solution. There are four main layers for proposed IT system, namely; Database/Backend Layer, Resource Management Business Layer, Warehouse Optimization layer and finally the Front End/ User Interface Layer.



1st Layer: The Backend Database Layer

The foundation of the entire project, the backend layer provides the core support that our software will be working on.

Current manual records and information must be plotted into a proper data structure. A proper data structure will be designed and data migration from manual records to our records will be a key stage in our project. Being a web-enabled software, we will also need a proper web-based server to host our software. This may come in a form of dedicated server.

Key consideration would be done to address the following issue: Firewall/Port Configuration, Backup Plan, Multi-party transaction plan, Load Balancing/Clustering Plans.


2nd Layer: Resources Planning Business Layer

This layer consist of modules that controls the business logic for resources management in our system. The resource management layer will allow the company to manage suppliers and the flow of their inventory in the warehouse. The layer consist of the 4 following modules:

a. Suppliers Management Module:

1. Suppliers Information Management: Manages the current suppliers, by allowing the users to store relevant information such as type of brands carry, price of ordering, lead time for delivery, also include overstocking ‘loaning’ price per day.

2. Suppliers Product Catalogue Listing: Manages the product that each suppliers are offering as well as price quotation. The prices varies base on demand basis, this functionalities allows tracking of suppliers product offering with their determined prices.


b. Inventory Tracking Module::

1. Transaction Inflow Management: Manages the inflow transactions from the suppliers, including tagging AVA-approved status. This functionality pro- vides historical logging of previous inflow transactions.

2. Suppliers Product Catalogue Listing: Manages the outflow transactions from the warehouse to the distribution center. This functionality provides historical logging of previous request inventory from the distribution center.

3. Current Stock Management Manages the current stock level of each individual product. This functionality also provides the users with tracking of where each inventory current location.


c. Inventory Business Analytics and Forecasting Module:

This module focus on providing graphs to aid business decision for the boss when planning his product re- stocking.

1. Product Trend Analysis: Manages the current stock level of each individual product. This functionality also provides the users with tracking of where each inventory current location.

2. Optimum Purchasing Time Analysis: Based on the market demand as well as the expiry of each product, provide the recommendation of the best time to pur- chase an individual product. Graphs are dynamic and response to different parameters changed.

3. Optimum Purchasing Quantity Analysis: Based on historical data as well as recent trend, provide the company with the optimum price for purchasing. Based on holding cost and ordering cost, using the business process newsvendor optimum ordering algorithm to provide intelli- gent recommendation.

4. Time for Product Overstocking Forecasting: Functionalities will supporting forecasting of when overstocking is necessary. (Instances where forecasted market de- mand is greater than possible storage space). Suggestion of which products must be stored at the supplier end (based on cheapest storage rental cost per product, per time period) and which product must be absorb by the warehouse to reduced overall holding cost.

5. Time-Period Market Trend This functionality supports highlighting the trend patterns of fluctuating price of the frozen food industry, based on the previous month’s pricing fluctuation, provide a predictive model of the next price hike and recommend time purchase of products.


d. Reporting Module

1. Inventory Reporting Functionalities: Reports on current inventory, previous month inventory can be generated and archive. The reporting modules enables our client to generate cost of goods for their products. Also allows the printing of the generated statistics, graphs and charts of inventory movement for documentation purposes.

2. Holding Cost Reporting Module: Costing of each product can generated for each inventory. Holding cost reports are used for to record each products costs to the organization. Holding cost reports can be archive for documentation purposes



3rd Layer: Warehouse Optimization Business Layer

This module focus on the internal planning of the ware- house. Base on blueprint of the warehouse and the average pellet size, the system is able to intelligent suggest the op- timal position to store and plan the entire warehouse storage structure. Currently, there is no such products available in the market that support warehouse inventory moving, thus, it is a new initiative and system for our team to ex- plore. The layer consist of the 3 following modules:


a. Warehouse Blueprinting Module

1. Architecture Blueprinting: This functionality allows the users to plot the blueprint of the warehouse digitally. Enabling the users to determine areas for the system to consider space efficiency and areas that are not allocated. Providing flexibility and expansion ability in the future.

2. Area Zoning Categorization Module: This functionality supports zoning of areas by allocating and marking areas that are to be considered for the optimization calculation, and areas that are not considered.


b. Inventory Space and Efficiency Management Module:

1. Warehouse Inventory Optimization: Based on the certain product characteristics, the system will reserve and plan the optimum place to allocate the inventory in the warehouse. Considered parameters: 1) Product’s moving frequency, 2) Expiry Date, 3) Type of Products, 4) Size of Products, 5) Temperature requirement for Product, 6) AVA-Status of Product.

2. Pipeline Inventory Reservation: The intelligent warehouse planning module will also handle reservation of pipeline products that are on the way to the warehouse, preempting the the warehouse personnel to prepare before the stocks even arrive. This allows proper planning of the warehouse.


c. Forecasting and Simulation Module:

1. Overstock Forecasting Module: Base on “What-If” scenarios, provides the users to forecast the warehouse storage volume and utilization if a particular business decision is exercised (eg: Ordering 100 more pellets of X product).



4th Layer: Interface Layer

Some users have little technological backing, it is essential to design a product that is easy to understand and interact without prior knowledge. Due to the fast pace demand of the industry, inven- tory and stock updating with our system should seamlessly integrate into the business process and not hindering cur- rent workflow. Our team has place emphasis on ease of use with our system. The 4 points of interface as followed:

a. “Andon” Board Interface: (Overview)

Provides real time summary information for display at the distribution center; selective information are displayed and projected. “Andon” board is a concept spearheaded by Toyota in their Toyota Production System. It provides immediate error notification and also provide an overview for senior management.


b. Intelligent Warehouse Allocation Interface: (Warehouse View) The warehouse will be digitally blueprinted in our IT system. The graphical interface is designed for easy viewing and locating of specific inventory. The warehouse planning is colour coded and also provides touch screen interaction.


c. Inventory Analytics Display Interface: (Statistics View) This interface provides proper dynamic graphs that will change according to new transactions. Graphs will change accord- ing to different parameters input. The interface will be designed to fit into current manner in which decision making is done by the boss, thus only relevant information will be displayed.


d. Inventory Tracking and Updating Interface: (Content-Modification Interaction View) As the warehouse personnels are not technological adaptive, the inventory updating interface is designed for easy under- standing and using. Allowing the warehouse personnel to use the system without much learning curve. The interface will be customize to the behavior and interaction of the warehouse personnel.

Technical Aspect of Solution

- Saiful's portion
- to be added in by saiful



Project Management

Project Milestone and Schedule

Assumptions

Risks Involved and Mitigation Strategies

Resources and Reference

Learning Outcomes