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School of Information Management
INFO231: Management of IT Projects (2020)
Assignment: Case Study
Due date/time:
10am, 8 June 2020 (submit via Turnitin link on Blackboard)
This assignment totals 30 marks (and worth 30\% of the course marks).
Please answer the following questions, clearly indicating the question number for each
question. The answers should be submitted as a Word file using standard fonts (e.g. Calibri)
and font size 12. You should not need more than four pages, but I am willing to accept up
to six pages. Learning to write succinctly, ensuring each statement adds value, and doesn’t
just say something that does not add to what we already know or to the argument
presented, takes practice and is highly valued.
Lunch Order & Delivery Service (LODS)
Background
FoodCo is a catering company that has been in business in Wellington for many years. The
business was built up by current owners Bruce and Joy, both trained as chefs, who prefer the
slightly more sociable hours of catering (despite the 5am starts) to evening work in a
restaurant. They have several full-time staff to help with food preparation and one driver
who delivers the catered food to its destination. They also employ casual part-time staff as
required to assist with large catering orders. They use an external accountant to manage the
books and tax affairs. At present they have no technology infrastructure. Ordering and
invoicing are done using a manual system.
Their catering customers are mostly businesses, and they have a steady, loyal clientele who
use them regularly for their office functions. Their speciality is fresh, light and healthy food
supplied at a reasonable cost. They also cater for a range of special dietary requirements.
Most of their catering business is done in Wellington, primarily in the central business
district (CBD) and the inner-city suburbs.
Through involvement with the schools that their children attend, they have become aware
that there is a demand for packed lunches for students at a reasonable cost. They are also
aware that in the suburbs, small businesses and institutions - such as schools and
kindergartens - are often not very well served by local cafés, which tend to be concentrated
in the CBD.
Page 1 of 6
Bruce & Joy see an opportunity for an online lunch ordering business (called Lunch2U) that
would have significant synergies with their existing business. They envisage using the
existing kitchen and staff, initially, to fill the Lunch2U orders; but this may expand if the
business grows. If it is successful, the cash flow will be somewhat more regular and
predictable than catering orders, which Bruce & Joy see as an advantage. They have invested
a considerable amount in developing the catering business, and they would like to be able to
increase their own takings now. This would be easier to do with a steady income stream.
Furthermore, if it works in Wellington, there is no reason why the idea could not be used in
other parts of New Zealand, possibly using a franchise system. This would ultimately allow
Bruce & Joy to have a good income without having to work in the kitchen anymore. To this
end, they sought help, which came in the form of SaladCorp – a major restaurant chain
(spanning both New Zealand and Australia) specialising in salads and other, healthy food
options. The executives of SaladCorp – especially Anita, the General Manager of Food
Logistics for SaladCorp – could see the potential with the creation of Lunch2U and agreed to
help. First, FoodCo put together a business plan outlining how the business would work
(described below). Then SaladCorp and FoodCo both put equity into the new business, with
FoodCo retaining 51\% ownership. Anita oversaw the process, working closely with Bruce and
Joy.
Lunch2U – The Business Plan
The main problem with running a food outlet in a suburban area is that the demand is often
less predictable than in the inner city. There is a risk of either having unsold food at the end
of the day, or of not being able to meet the demand. An online ordering system would
manage this problem. If lunch orders were received by 10:00 am, staff would prepare only
what they know would be sold, which would reduce wastage and enable the business to sell
the food more competitively at a lower margin. However, there were two major issues that
needed to be resolved.
First, delivery costs have the potential to add considerably to the costs of Lunch2U. Also, the
time window between when the orders are received (10:00), and when they all need to be
delivered (12:30 at the latest) is quite tight. To manage this, the coverage will be restricted
to a designated range of inner-city suburbs in Wellington that a driver can cover within a 45minute period, from 11:45 to 12:30. Given the tight delivery window, Lunch2U needs to
minimise the number of different delivery points. Their initial figures suggest that they
would need to get about $700 worth of business each week (on average) from a specific
delivery destination to make it economical to stop there. Initially, they will let prospective
clients know that this is the minimum level of which it is cost effective to provide the service,
and this will be closely monitored for the next few months.
The other major problem that needs to be resolved cost-effectively is the technology
infrastructure. Bruce and Joy are not interested in developing hands-on IT skills. They want a
reliable system that will enable clients to enter orders and Lunch2U to receive them; they do
not want to become webmasters or to have to employ a web developer. The cost of
employing someone to look after the system would probably make it unprofitable anyway. It
is important that once the initial development is completed the ongoing costs of maintaining
it are minimal.
SaladCorp agreed there is a need for an information system (IS) to address order and
delivery management, and have agreed to provide the resources to both create and
Page 2 of 6
maintain the IS. However, they were unsure whether they should look for an appropriate
package or build their own software (making it easier, and more profitable, if they should
expand Lunch2U operations). In the end, SaladCorp asked for a business case to be made for
the build option, and provided two members of their own IT staff (Jim, a senior business
analyst, and Ulf, the Deputy Finance Officer) to help FoodCo set it up. Ulf was part of this
exercise because it was SaladCorps’ policy to have a senior manager from the Finance
Department involved in every IT project.
Business Case for LODS: Requirements
The Business Case provides some of the arguments in favour of developing the software for
the new IS, referred to as LODS (Lunch Order & Delivery Service). The Business Case includes
the following functional requirements:
RQ1: A school organises student requests for lunches for the day and places its collective
order through a web-based interface.
RQ2: FoodCo receives the orders and works to fulfil the orders (creating the products in their
kitchen).
RQ3: Once an order has been fulfilled, the order status is updated accordingly, the order
products are packaged, and a label with the school address and drop off point is printed and
attached to the package.
RQ4: An algorithm is used to determine an efficient route to take for deliveries and a time by
which the driver must leave to ensure deliveries are received by the schools before 12:30.
RQ5: The Head Chef receives an overall list of the day’s orders and a breakdown of lunch
ingredients so that they can organise the ingredients and kitchen labour accordingly.
RQ6: Weekly and monthly reports summarising the orders by product, including a
breakdown by school, will be provided for Bruce and Joy, as well as the Customer Support
Manager (see below).
It was agreed that if, after 1 year of operation, this system is effective, and sufficient schools
(and sufficient students within the schools) choose this service, then the LODS system will be
expanded to incorporate a payment system, and allow for multiple kitchens and delivery
vans to operate.
Note that the work in the kitchen starts well before orders are received because they are
confident, based on experience, of a minimum number of products that are likely to be
required for the day.
LODS Project Approval
The proposal was approved by Anita (as SaladCorp’s representative), subject to some key
conditions:
(1) A modest budget was provided – Anita, Bruce and Joy agreed the system would be a
basic one, with an emphasis on quality in terms of reliability, accuracy and ease of
use.
(2) A relatively tight timeframe for the project was set at 3 months, finishing by the end
of November, so that there was time to market the new service to schools (and
through them, the students’ parents) before the start of term in early February.
Page 3 of 6
(3) A Customer Support Manager was to be appointed (part-time, at least initially) in
November to provide both a sales function (convincing schools to try the service) and
liaise with existing customers to help with any problems that may occur with the
software, deliveries, etc.
A Project Board (PB) was set up, who then contracted Rajiv, as an externally appointed
project manager. SaladCorps agreed to provide three capable employees to make up the
project team. Two are very experienced developers: Justine (who will handle the front end
web interface) and Wei (who will handle the back end order processing and delivery service).
The third is Wiremu, who will handle the technical support.
Rajiv is highly experienced and professional in his approach, and so quickly established the
project plan. A preliminary work breakdown structure (WBS) was created at the start to
check that the project could be completed within the 3-month timeframe and begin the
process of identifying necessary resources (described below).
Preliminary Work Breakdown Structure (WBS) for the LODS Project
LODS Project
1. Planning &
Preparation
2. Analysis &
Design
3. Development
4. System Testing
5. Implementation
1.1 Establish
technology
platform
2.1 Define user
requirements
3.1 Develop
customer/order
database
4.1 Test delivery
system
5.1 Train kitchen
staff & drivers
1.2 Set up server
2.2 Design web
page layouts
3.2
3.2 Develop
Develop webweb
interface for
orders
4.2 Test LODS
system
5.2 Train school
administrators
3.3 Test web
pages & links
4.3 Conduct user
acceptance
testing
5.3 Implement
system
6. Project Closure
3.4 Establish/test
delivery algorithm
3.5 Develop
delivery system
The WBS was discussed with the project team and a preliminary Activity Table was
developed in order to indicate who would do the work and estimate how long the tasks
would take (see below). They also discussed dependencies between tasks, and noted the
following:
i.
Wiremu said the technology platform could not be established until the server had
been set up.
ii.
Designing web page layouts and the database would be based on the user
requirements.
iii.
Once (i) and (ii) were done, the web interface for orders could be developed, and
then the web pages and links could be tested.
Page 4 of 6
iv.
Meanwhile, once the delivery algorithm was ready (this would also depend on
information from user requirements), the delivery system could be tested.
v.
When the developers had finished testing the web interface and delivery system, the
entire LODS system could be tested – first by the project team, and then finally by
the users.
vi.
The system is formally implemented after training, and then the project is signed off
and closed.
Preliminary activity table incorporating task time estimates
Task Description
1. Planning Description
1.1 Establish technology platform
1.2 Set up server
2. Analysis & Design
2.1 Define user requirements
2.2 Design web page layouts
3. Development
3.1
Develop
customer/order
database
3.2 Develop web interface for orders
3.3 Test web pages and links
3.4 Establish/test delivery algorithm
3.5 Develop delivery system
4. System testing
4.1 Test delivery system
4.2 Test LODS system
4.3 Conduct user acceptance testing
5. Implementation
5.1 Train kitchen staff & drivers
5.2 Train school administrators
5.3 Implement system
6. Project closure
Time(days) Who
4
3
Wiremu
Wiremu
3
5
Rajiv
Rajiv
Wiremu, Wei, Justine
6
10
4
4
5
Justine
Justine
Wei
Wei
4
4
4
Wei, Rajiv
Wei, Justine, Rajiv
Rajiv, Bruce, Joy
2
Rajiv, Bruce, Joy
Customer Support Manager,
Rajiv
Wiremu, Rajiv
Rajiv
8
4
2
LODS Project Execution
Even with relatively simple projects like this, problems often occur, and LODS was no
exception. For example, Bruce and Joy had a habit of getting too deeply involved in the
project, effectively interfering with Rajiv’s ability to keep the project moving by challenging
some of his decisions or, at times, trying to manage the project team themselves. Rajiv
found this interference difficult to address.
Another worry was that the Wellington City Council had commissioned an engineering
report to assess the safety of the kitchen FoodCo was working in, and whether it would
require earthquake strengthening or not. The report was due in late October, right in the
middle of the project.
Page 5 of 6
Questions:
1. [2 Marks] Describe the scope of the LODS system.
2. [3 Marks] Identify the stakeholders and their roles in the project (please use a table).
3. LODS will need to have IT project governance arrangements in place.
a. [2 Marks] Who would be best qualified as the Project Sponsor? Why?
b. [2 Marks] Identify 4 people you think should be on the Project Board. Briefly
explain your selection.
4. [2 Marks] Consider the project team. What sort of leadership style should Rajiv use
given the circumstances of this project? Why?
5. [2 Marks] What should Rajiv do about the occasional interference from Bruce & Joy?
Why?
6. Ignoring any resource constraints, perform the following:
a. [3 Marks] Create a Precedence Diagram, including estimated completion
times [NOTE: There are many options to draw such diagrams, e.g. Visio,
Powerpoint, even Word!]
b. [1 Mark] Identify the critical path and critical path length
7. Suppose resource constraints were now taken into account:
a. [2 Marks] How would that change the critical path and its length?
b. [3 Marks] Suppose within the first two days of starting the project,
SaladCorps suddenly pulled Justine off the project, and Wei had to perform all
her work as well. How would that affect the critical path and its length?
c. [2 Marks] Based on your answer to (d) above, should Rajiv consider asking the
Project Board for another developer to replace Justine (either from
SaladCorps or externally hired)? Explain.
8. Consider the risk that the engineering report would require them to vacate the
kitchen for earthquake strengthening during the project.
a. [1 Mark] When analysing the risk, where would you rate it – think of a
continuum between “No Risk <--> Very High Risk”. Why?
b. [2 Marks] What risk strategy would you adopt? Why?
9. Sometimes stakeholders need to sign off on different stages of the project.
a. [1 Mark] Would these be considered project deliverables, milestones, or
something else?
b. [1 Mark] At what point in the WBS would Bruce & Joy, as representatives of
the users, finally sign off?
c. [1 Mark] Where, in the WBS, would the project as a whole be signed off, and
who would do it?
Page 6 of 6
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