Pm group project implementation of cargo storage planning system

Implementation Of Cargo Storage Planning System

Den Lee(P1265811) Mohan VP (P1265770)Kyaw Min Htwe (P1266908) Winnie Tan (P9918737)Veena Syamkumar (P1266333

MM6043- PROJECT MANAGEMENT IN SUPPLY CHAIN

Agenda

MIN

MOHAN

VEENA

WINNIE

DEN

Introduction Company Background and strategy Current Issue and Solution Project Object and project Team

Time Cost and Performance Analysis Project Stakeholders Project Lifecycle Project Estimate Cost and Duration

Manpower Requirement Resource Requirement Project Condition and Control Project Scope

SWOT Analysis Risk Analysis Top 5 risk and Impact Top 5 risk and Contingency plan

• Conclusion • Driving Towards 5 Core Values:• Project quality control • Success Criteria Acceptance

Q & A

To be leading Internal Multi –Purpose Operator

Company Background & Strategy

Supply Chain & Management Logistics World Awards

STORAGE FACILITY

25 Warehouses – 174,000 square meterOpen storage – 215,00 square meter Container Yard – 35,000 TEUS

3 CORE BUSINESSES

General Cargo Bulk Cargo Containers10 units

7 units 1 units

Mark SpaceOccupancy

Eye-ball SpacePlanning

Excel Sheet------------------------------------------------------------------------------------------------------------

Track IncomingVessels

GBO

GBO

Business Need Analysis

Improve Service

Inventory Accuracy

Increase storage

utilization

Reduce Manual Input

Current Planning System

Technological Need Analysis

Cargo Storage Billing

Space Planning

JP Online IncomingVessels

Space Planning

Track CargoTonnage

Billing

Agent

SSTDN

SSTSSTUA

Track SpaceOccupancy

Track Area Allocated

Customized Tariff

Process WarehouseApplication

SSTSSTSST

Agent

GBO

Online Approval/NotificationJP Online

JP Online

Master Data

Storage SpaceMaintenance

Space OccupancyMarking

Access Control

Audit Trail

Storage SpaceReservation

Reports

StorageLocations

Storage SpacePlanning

Space Planning

Storage SpaceRestriction

Singapore’s only gateway for all types

of general cargo.

MASTER DATA

TRACK INCOMING VESSEL

STORAGE FACTOR

Daily/ weekly/ Monthly-storage utilization and inventory report

REAL TIME INVENTORY UPDATE & CARGO STORAGE LOCATION UPADE ONCE TRUCK IN/ OUT

Physical storage location and resources

HOW CARGO PLANNING SYSTEM INPLEMENTATION SOLUTOING TO CURRENT ISSUE

1• To allocate space to incoming cargoes effectively and efficiently without manual confirmation and

minimize or zeroing duplication of efforts

2

• To improve cargo storage operation cost by 30% through system automation to reduce manual operation works and perform work efficiently

3

• To transfer ‘due’ cargoes from the grace- free trade zone to the leasing storage zone to achieve increase of 5%, approximately estimated to be SGD 500,000.00

PROJECT OBJECTIVE & GOALS

Before After

PROJECT TEAM & ORGANIZATION CHART Chairman & Project

Sponsor(Lee Chong Kwee)

CEO & Chairman of Steering Committee

(Matthew Chia)

CIO / Project Owner(Eugene Seah)

Project Manager & IT Manager

(Min)

Finance Manager (Winnie)

Business Controller

Accounts Payable Manager

Account Receivable Manager

Senior Financial Planning Analyst

Financial Planning Excutive

Finance Analyst Assistant

Operation Manager(Mohan)

Vessel Management Team

Vessel Berth Planning Team

Stevedore Management Team

Operation Manager

Storage Management Team

Yard/Warehouse Planning Team

Procurement Manager (Veena)

Purchasing Manager

Distribution Manager

Strategic Sourcing Team

NCS Project Manager

(Den)

Software Manager

Hardware Manager

Steering Committees

Head of Marketing(Febrina Lee)

Head of Finance(Tay Kian Hian)

NCS VP(Sean Kwan)

Overview of Time, Cost & Performance Analysis

Time Performance Cost

Constraint Improve storage planning accuracy and billing when grace-free period has expired, reduce 'manual monitoring' costs.

Enhance Within 2 years

Accept Above 10% of the project budget

Project Stakeholders

• Stakeholders are the people involved in this project• Stakeholders include:

– Project sponsor– Project manager– Project team– Support staff– Employees– Customers– Users– Suppliers– Opponents to the project

Project Life Cycle

Concept Development Implementation Termination

GoalsSpecificationTasksResponsibilities

SchedulesBudgetsResourcesRisksNegotiateManpower Plan

Develop DesignInstallationTrial RunSubmit for ApprovalPrepare DocumentationTesting

Review Train UsersSubmit final ProjectLessons Learned

Concept Termination

Implementation

Development

Project Estimated Cost & Duration

Estimated cost - S$ 80,000Duration of Project - 2 years

Man Power RequirementsProject Manager & Team

Ensure overall success of the project.

Finance Manager& Team

Identify all potential risks and allocate sufficient budgets.

Operation Manager & Team

Ensure new system meets the cargo operation requirement.

Procurement Manager & Team

Vendor Management and contract agreements.

NCS Project Manager & Team

Successful Running & Execution of New System

Technical / Solution Team

Install and configure software and hardware, network set up and testing

Planning System Integration Requirements

Warehouse Application

System

Resources Planning

• Contract Agreement• Standard Document Format.• Hardware & Software• Point-to-Point • Editor Software.• Wireless Modem and Router• Preventive maintenance contract

Project Scope

PROJECT IN-SCOPE• Auto-update the Yard Occupancy.• Reduces the manual monitoring of

storage area• Alert if the cargo exceeds the

predetermined parameters.• Micro Yard Plan to plan the required

area .• Gate Scheduling System• Smart System Micro planning

module • System maintenance contract to

ensure maximum productivity.

PROJECT OUT-SCOPE

• Warehouse demarcation and current layout plan

• Upgrading of warehouse • Installation of Security system

SWOT Analysis

STRENGTH :• Singapore’s only

gateway for all types of cargo

• High warehouse capacity

• Well-known for safe, reliable and efficient terminal

WEAKNESSES :• Lack of knowledge &

expertise• Employees resists to

new system• Must undergo

significant change management

OPPORTUNITY :• Accurate & convenient

cargo management• Efficient & effective

communication with shipping agents

• Better market position and increase revenue

THREATS :• Growing regional

competition• Resignation of key

members• Underestimate level

of difficulty in software & hardware integration

• Uncertainty during data collection• No data from certain stakeholders• Biased assessment in Cost Benefit

Analysis• Inaccurate forecast with changing

environment• Resignation of key members

• Over-reliant on vendor• Under-estimate design requirements• More investment to convert technical

to commercial success• Expose to unknown risk events• Difficulty faced by non-IT savvy

Potential Risks

Top 5 Risks and Their Impacts

No. Top 5 Risks Their Impacts1 Under-estimate design

requirements*Rapid innovation can turn obsolete overnight.

2 Over-reliance on vendor * Insufficient vendor support slow down the project.

3 Inaccurate forecast with changing environment

Project will be delayed with increase budget (resources).

4 Resignation of key members Affect the progress of specialized scope.

5 Risk associate with new technology

Unknown risk leads to several days and weeks of debugging.

No. Top 5 Risks Their Risk Contingency Plan1 Under-estimate design

requirements*Proper deliverables are contracted down and legally endorsed.

2 Over-reliance on vendor * More than 1 project vendors and trained in-house IT specialist

3 Inaccurate forecast with changing environment

Obtain additional resources from management support

4 Resignation of key members Incentive remuneration packages.

5 Risk associate with new technology

Gather all possible detail risk information from vendor and put to test.

Top 5 Risks and Their Risk Contingency Plan

In Summary…….

Driving Towards 5 Core Values:

1. Service Excellence – Efficiency of Space Allocations = Increased Assets Utilization

2. People Excellence – Set of automation capabilities of the storage planning system Reducing Labour Intensive

3. Integrity – quality services and improvements = internal processes and reducing operation cost by 30%.

4. Innovation – Notifying and monitoring the free storage period = stretching revenues (Increase 5% Annual Revenues)

5. Dynamism - allows information exchange with Berthing office and shipping agent

Project Duration – 2 Years Project Cost Estimation…

Total Project Costs – SGD542k

Profit & Savings – Approx. 5%(After Implementation) – SGD170k

ROI (%) = 31.34%

ROI = 3.19 Years

Project Quality Controls…

•Report Performance•Monitoring & Control Risks

•Administer Procurements

•Control Costs•Perform Quality

Control

•Monitoring & Control Project Work

• Scope Verification• Scope Control

Phase 1 - Concept Phase 2 - Development

Phase 3 - Implementation

Phase 4 - Termination

Leadership• Democratic leadership • Situational Leadership• Seek responsibilities and accept

accountability

Conflict Management• Confronting• Collaborating / Problem Solving -

incorporating multiple viewpoints

and leading to consensus Integrating / Problem Solving•Time consuming process•Welcome contributions and discussion

Obliging / Smoothing•Quick Approach•To be use in trival differences in opinions•Emphasize on commonalities over conflict issues

Dominating / Forcing•Use in situations with quick decision

Avoiding / Withdrawal•Use when a cooling off period is required•Avoid confrontation

Compromising

Project Communication• Monthly Project Meeting• Project Status Report• Stoplight Report• Issue Log• Change Control Log Sheet

Success Measurements…

Success Criteria Acceptance - 22 May 2015• System Go live date to be agreed upon with all parties• Deployment project and schedule agreed by all stakeholders • project charter endorsed • Performance and capacity targets of Jurong Port has be measured

and incorporated into the Capacity Plan• Potential identified risks and processes been reviewed• Technical support documentation been provided by Project

Manager (NCS Team)• All users have been trained and user documentation was accepted

Expecting to Close on 22 May 2015…

What to Expect on 22 May 2015?• Reviewing Contract Documentation• Auditing Procurement Processes (Lesson Learnt)• Performing Contract Closeout• Completing Contract Closeout• Improvement for Future Project

Project Phase 2 – Starting Jan 2016

Improvements • Democratic leadership • Investment analysis• Cost–benefit analyses• Value benefit Analysis• Expert surveys• Simulation calculations• Risk-profile analyses• Surcharge calculations• Milestone trend analysis• Cost trend analysis• Target/actual-comparison

Pick to Light Systems in Jurong Port • Light-Directed Order Fulfilment System• Cable Free Hardware Technology• Robust Software• Exercises Operational Advantages• Flexible Order Fulfilment Systems

Den Lee(P1265811)Kyaw Min Htwe (P1266908)Veena (P1266333Mohan VP (P1265770)Winnie Tan (P9918737