Answered Essay: A major grocery store has realized that staffing its checkout counters with human staff is increasing

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A major grocery store has realized that staffing its checkout counters with human staff is increasing wait-times for customers, and adding personnel costs for the store. Therefore, it wants to consider improving the quality of its service, while cutting personnel costs, through two enhancements: (1) RFID-tag the items in the store. (2) Install RFID readers at the checkout counters for automated billing. Write a sample project charter for the above project. The charter must be no more than two pages long.

Expert Answer

Project Name – Installing RFID system to improve Customer Experience

Executive Sponsor – Director (Operations), Director (Finance)

Department Sponsor – Department Head

Impact of the Project – With a RFID-based check-out, the customers will be waiting for a substantially less time than what it is now. This will improve the customers’ in-store experience and overall satisfaction. Additionally, the project will help reduce the personnel cost of the store by saving and reallocating a number of man-hours.

Project Team

Name Department Telephone E-mail
Project Manager:
Team Members:
1
2
3
4
5

Stakeholders

Customers
Staffs
RFID hardware and software supplier(s)
Consultants/ Training agencies
Top management or project sponsors

Project Scope Statement

  • Project Purpose/ Business Justification – With the increased demand level of the store, it is now very difficult to facilitate the manual check-out process. With the existing process, the customers need to wait very long leading to utter dissatisfaction. This may, in future, translate to rejection by the customers. Additionally, the cost of man-hour in the store is also very high due to the process. The project proposes to reduce the cost and improve customer experience by the use of RFID technology
  • Objectives – Reduce cost by $1 million annually and increasing the demand and customer satisfaction by 20% due to this effect (i.e. in addition to the normal growth rate)
  • Significant Deliverables – Improved Customer Satisfaction/ Experience, Boosting Employee Morale
  • Scope – The project will address
    • Installation of RFID hardware devices and software architecture
    • training all the employees to use the new system effectively
      • The project does not include
    • Inventory management through RFID
    • Data management and analytics
  • Significant Milestones –
    • Selection of vendors, suppliers, and consultant partners (Start – 12-Sep-17; End – 5-Oct-17)
    • Procurement of hardware and software (Start – 5-Oct-17; End – 25-Nov-17)
    • Fabrication/ installation of devices (Start – 25-Nov-17; End – 31-Jan-18)
    • Training to all the employees (Start – 1-Feb-18; End – 28-Feb-18)
    • Test run to identify difficulties and gaps (Start – 1-Mar-18; End – 31-Mar-18)
    • Closure of the gaps (Start – 1-Apr-18; End – 30-Apr-18)
    • Final implementation (latest by 15-Apr-18)
  • Major Risks
Risks Risk rating
Rejection by the employee in fear of job loss High
Improper functioning and customer dissatisfaction High
Catastrophic failures and cessation of entire system Medium
The present layout may not support the new system Medium
Wandering bottlenecks High
  • Constraints
    • Team members’ inexperience in the field of IT project implementation
    • The overall budget for the project
  • External Dependency – The success of the project is highly dependent on the following external stakeholder’s performance, intent, and prudence
    • Vendor for hardware systems
    • Vendor for software systems
    • Trainer/ consultant/ implementation partner

Communication Strategy

  1. Subscription-based project management platform which ensures seamless communication among the members
  2. Weekly communication with the department sponsor regarding the project schedule and cost variances
  3. Monthly meeting with the executive sponsors

Sign Off

Name Signature Date (MM/DD/YYYY)
Executive Sponsor
Department Sponsor
Project Manager
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