Business Case Afternet Systems

Business Case Afternet Systems Inc. is focused in retail sales of used and refurbished Networking and Telecom Equipment, Consumer Electronics, telephony and networking adapters and accessories. Currently the company is allocated in a warehouse that provides 8,700 square feet of floor storage area and office space, which has been increasingly become insufficient for the company storage and organizational needs.

Also, due to the diversity and large amount of items currently in stock and the possibility of making these items available for sale online, it has become necessary to implement an automated inventory information system, to be integrated with the sales, shipping and accounting systems. This system is at an early stage of implementation and adherence within the company.

With the lease of the current location coming due by the last day of April/200X, management has decided to relocate the company to a larger warehouse and with the move, concurrently implement changes necessary to adhere to the current software chosen to manage its internet sales presence. Project Objectives To move the company from its current warehouse to a facility with a minimal of 15,000 square feet of indoors floor area and office space, during the period of April 1st/200X to April 30th/200X, transferring its inventory and the administrative departments.

The project also includes the closure of the current location and relocation of currently used services to the new facility. The project envisions the company’s adherence to an automated system for receiving, testing, refurbish, storage and shipping of product. With the move the company will be able to offer to its current customers and general public a larger variety of products, more efficiently by using a better information system combined with an increased storage capacity.

Project Scope Allocate and lease a warehouse with a minimum of 15,000 square feet of indoors floor area. The targeted facility must provide sufficient area for the following: Product Receiving Product Testing Product documentation and classification Product Storage Product Shipping Administration Offices Kitchen area 2

Prepare the warehouse with the following infrastructure and amenities to operate: Installation of electrical, telephony and networking wiring for all operation areas Installation and configuration of a telephone system for all users Contract heating and air conditioning services if these are not offered through the building management or lease contract - Contract broadband internet access (minimal link speed of 5 MBits/s) and distribute to all users - Move and install office furniture and workstations - Install and configure networking infrastructure in the new facility.

- Move and install file server from the current warehouse and make its services available to all users on the new facility’s network. - Construct isles and shelves assigned to store product. Identify and barcode/tag each location according to current inventory management software currently in use. - Design, construct and install benches for testing, refurbish and documentation of product. Relocate inventory to the new warehouse, perform count and enter records into the inventory management software as they are assigned to specific storage locations. Prepare current warehouse for closure.

This task includes removal of all property in the building belonging to Afternet Systems Inc. , payment of all related bills regarding the lease of the building, and closure and/or relocation of needed services. The inventory data entry will occur during the move of all items that are allocated for resell, in stages. Each load of equipment will follow inventory entries by item part number, quantity, condition and its current location in the warehouse. The office area relocation will include furniture, computers, telephone systems and equipment to be installed and configured.

The following services will be contracted out and activated during the move: Phone lines Broadband Internet access Alarm/Security systems Heating Electricity Water/Plumbing Garbage collect - The storage area must meet a minimum of 30,000 square feet of shelving surface area, not surpassing 12 feet in height and 6 feet in depth. The space in between isles must be of at least 5 feet. Areas next to side walls must allow a forklift to operate and store items accommodated on standard pallets. 3

Isles and shelves must be identified with a unique token, according to the current software being used by Afternet having a visible tag attached to each location with a bar code and respective location number. The shipping and receiving area must have a docking capable to unload semi-trucks cargo as well as small trucks operated by FedEx, Purolator and UPS by manual fork lifts. The testing bench must allow the placement of small to mid size items, capable of sustaining items weighing up to 150 lbs, measuring a maximum of 50” x 25” x 30”.

There must be electrical outlets and power capable to provide and sustain energy to power large equipments. The testing area must have special illumination installed according to electronic testing lab standards. The office area must be physically separated from the other areas by walls, with easy access to the storage area. A total budget of CAD $15,000. 00 has been assigned to fund the costs of this project. This includes manpower, payment of the first month lease installment of the new warehouse, contract services and purchase materials needed to accommodate all tasks and infrastructure needed to the project completion.

Major Deliverables - Identify a suitable warehouse and prepare lease contract to be signed - Design warehouse areas: Office, Receiving, Inspection, Testing, Refurbish, Storage, Shipping, Kitchen - Contract services: Water, Electricity, Internet, Phone lines, Security, Freight - Design, build isles and shelving and cross reference its structure into the current inventory system - Design, install and configure office infrastructure and areas for testing and refurbishing - Design, install and configure network services and infrastructure - Transfer, inspect, and document products into the system and store it in assigned shelves - Configure information system to reflect the new location - Transfer offices and administrative departments to the new warehouse - Close the current warehouse In order to have all tasks accomplished on target, the procurement of all contracted services and the warehouse finding should be initiated prior to the beginning of April/200X, in order to allocate more time to the actual move. The organization needs to accommodate forecast operations for the month of April/200X with the move process so that its employee’s timeframes allow for the execution of project tasks that are viable to be performed internally.

In a general rule, the warehouse should have available telecommunications and networking infrastructure 4 installed and properly configured prior to the receiving of the products to be inventoried and stored. At the same time, the isles construction should take place as well as the testing, documentation and refurbishing areas are assembled. Following shipments should start arriving and product storage processes initiated. At this point preparations to transfer the administrative departments should take place. Finally the closure of the current warehouse should be initiated and operations on the new facility should take over as the project comes towards its end.

Proposed Resource List - Phone system to accommodate 3 lines and 10 extensions - Network infrastructure: Server, Switch, router - Bar code printers: to label product - Bar code wireless scanner: to identify product location - Industrial Shelves: to store product - Freight services: to transport product, equipment and furniture - Manpower: to execute project’s tasks Project Customers The end customers are actually companies and individuals that currently purchase products and new customers, who will be able to browse through all inventoried items and make purchases online. Also service providers will benefit from a higher level of automation which will increase efficacy in processes with which these organizations might be involved with. Customer Requirements, Needs and Key Attributes The crucial requirement is that the product shipped to customers meets the description found at the time of purchase.

This requires that all inventoried items reflect what is being documented at the time of entering the record into the system, as well as labeling and storing the product properly. The adherence to these practices will improve customer satisfaction, which in turn has the potential of increasing sales volume. Project Stakeholders The stakeholders are the company’s owners; in this case they also manage operations. High priority and high risk activities will be executed and/or managed by the stakeholders. Project Manager and Authority Level The project manager is a team member of the organization and will be responsible for the execution of project activities as well as keeping track of the scheduling of all concurrent