Pizza Delivered Quickly (PDQ) is a local chain (40 stores) of eat-in and home delivery pizza stores. Recently PDQ has lost 30 percent of sales revenue due mostly to a drop in its home delivery business. It attributes this solely to its major competitor who recently promoted a program that guarantees a 45-minute delivery service from order entry to home delivery. PDQ advertises one-hour delivery. PDQ currently uses computers for in-store operations and the usual business functions, but otherwise is not heavily dependent upon software systems to help receive, process, and home delivers customers’ orders. Pepe Ronee, Supervisor of Computer Operations, has been charged with developing a software application to identify “pizza factory” locations and create the software system needed to operate them. In commissioning this project, Dee Livery, the president, said to pull out all the stops. She further stated that the future of PDQ depends on this project. She wants you to lead the team to investigate an option to deliver the pizza unbaked and “ready for the oven” in 30 minutes or less or deliver it pre-baked in 45 minutes or less. These pizza factories would not have any retail space. Their only function will be to receive orders, prepare, and deliver the pizzas. The factory location nearest the customer’s location will receive the order from a central ordering facility, process, and deliver the order within 30 or 45 minutes of order entry depending on whether the customer orders their pizza ready for the oven or already baked. Pepe has identified six software applications for the solution as indicated below to aim in your assignment. SW-1: Pizza Factory Locator Subsystem The first is a software subsystem to find pizza factory locations. It is not known how many such factories will be needed nor where they should be located. The software subsystem will have to determine that. Clearly, this subsystem is a very complex application. The goal can be clearly defined, but even then, the solution will not be at all obvious. This subsystem will have to use a very sophisticated modeling tool. The requirements, functionality, and features are not at all obvious. Some of the solutions can probably be envisioned, but the whole solution is clearly elusive at this early stage. Exactly how to model it is not known at the outset. It will have to be discovered as the development project is underway.
SW-2: Order Entry Subsystem The second is an order entry subsystem to support store and factory operations. Telephone orders will come to a single location, be taken there, and then be routed to the appropriate store or factory electronically. This system focuses on routine business functions and should be easily defined. Off-the-shelf commercial software may be a big part of the final solution to support store and factory operations. This subsystem can utilize commercial off-the-shelf (COTS) order entry software.
2 SW-3: Order Submit Subsystem This subsystem will direct the order to a store, factory, or pizza van. The logistics for making this assignment are not at all clear, and subsystem design will be complex.
SW-4: Logistics Subsystem This subsystem is the most complex of the six subsystems. It will require a holistic view of the entire PDQ system. Its complexity arises from the fact that the pizza vans are a mobile production and delivery facility. So the assignment of an order to a pizza van must take into account where the van is likely to be when it is time for order delivery.
SW-5: Routing Subsystem This software application will be a routing subsystem for the delivery trucks. This application is straightforward and will probably involve having GPS systems installed in all the delivery trucks.
SW-6: Inventory Management Subsystem The final application will be an inventory control system to manage inventories at all stores and factories and automatically reorder from the single vendor PDQ has been using since it first started in the business. PDQ has been informed by its vendor that it can earn discounts by using the automatic reordering feature. This application should also be a COTS application. These applications are obviously very different software development projects requiring very different approaches. The Pizza Factory Locator subsystem will be a very sophisticated modeling tool. The requirements, functionality, and features are not at all obvious. Some of the solutions can probably be envisioned, but the whole solution is clearly elusive at this early stage. Exactly how it will do modeling is not known at the outset. It will have to be discovered as the development project is underway. The Order Entry subsystem can utilize COTS order entry software that will have to be enhanced at the front end to direct the order to the closest factory and provide driving directions for delivery and other fulfillment tasks on the back end. The requirements, functionality, and features of this subsystem may be problematic. Your Assignment The six subsystems that make up the PDQ solution may each require a different project management approach. You will use knowledge from various units of the course and related discussions incorporated that require strategy formation and other decisions to find and maintain a best-fit project management approach. The project is about to commence, and you are conferring with your team members to decide on reporting requirements and frequency. Your first task is to take into account the 3 stakeholders in the project and what their needs might be. Refer to the background statement for the input you will need to answer the following questions:
1. Who are the people that you need to hear from to determine whether they are satisfied with your progress on the project?
2. How will you get information from your team and distribute it to other stakeholders for the project? The entire PDQ project could be viewed as a program consisting of several dependent projects.
Once the project’s parts have been identified through the initial changes, including those introduced by Dee, the project might be represented as shown in Figure 1. Figure 1: Systems-Level Solution for PDQ Some Hints: This can be viewed as a program consisting of six projects – one for each subsystem – there are several ways to approach finding the solution. The Order Entry and Inventory Management Subsystems should be available as commercial off-the-site-shelf products. A Request for Information (RFI) or Request for Proposal (RFP) can reach that conclusion quickly. The other subsystems are quite different. All four require some form of heuristic algorithms as part of their solutions. The difficulty with each of these is that order preparation can be at one of three sites. The stores and the pizza factories are fixed in place, whereas the pizza vans are moving locations. The same moving location problems introduce uncertainties and complexities in the Routing subsystem. So these four subsystems are highly interdependent, and an optimal solution may not be possible. That is why a heuristics approach may be the best approach. As far as a portfolio approach is concerned, this could be viewed as two separate submissions. One would be for the Order Entry, Order Submit, and Inventory Management Subsystems. Together they provide an operational solution for the current store situation. The other would be the Logistics and Routing projects that deal with the uncertainties and complexities added by the line moving components – the pizza vans that prepare pizzas and that can also deliver pizzas. Pizza Factory Locator Order Entry Logistics Order Submit Routing Inv. Mgmt. 4 Even that solution could be done in stages. The first stage would be to incorporate the pizza factories as just another fixed location for preparation. The second stage would add the pizza vans as moving preparation locations. The Adaptive Project Framework works well regardless of the approach taken. 3. Construct the “As Is” and the “To Be” business processes for the Order Entry subsystem. You may have to make some assumptions about the “As Is” process, but just state your assumptions and move on. Following is an example of an Order Entry case for the PDQ that you can use to help you answer the preceding questions. Basic Flow of Placing an order • This use case begins when the actor indicates they want to place an order. • The system requests order information (coupon information) • The actor provides valid order information • The actor indicated that the order information is complete • The system validates the address (additional details) • The system prices the order • The system displays the complete order with the price • The actor confirms the order • The system assigns the order to the appropriate preparation location • The system prioritizes the order • The use case ends when the system prioritizes the store orders. Further Hints on Order Entry Subsystem The requirements of the Order Entry subsystem were gathered through a series of previous cases. Client participation was exemplary even though it was the first time PDQ employees were going to engage in such an activity. There was an online Order Entry Screen, so customers could go directly to the system to enter their Order and pay with a credit card. That was easily defined. A one-stop entry was created for telephone orders that replaced the need for customers to call the store that preferred to use. The order would then be routed to the logistics subsystem and assigned to the appropriate production facility (store, pizza factory, or pizza van). The Order Entry subsystem was estimated to require 32 days for development, testing, and deployment. That completion time was firm because an outside consulting company had been hired to develop the logistics subsystem beginning on the Order Entry subsystem, and work on it could not begin until the Order Entry subsystem was deployed. Pepe discussed the criticality of the schedule with the order entry project team and the client. He proposed a management reserve of three days to accommodate unexpected change requests. Having management reserve is an effective insurance policy to protect the start time of related systems. There is a strong likelihood of schedule slippage being passed on to the dependent systems in its absence. Without a management reserve, the logistics subsystem in this example would likely be in distressed condition even before it started. 5
4. For the Order Entry subsystem, define an early-warning Schedule Performance Index (SPI) tracking metric with trigger values and supporting graphic display.
5. Despite the team’s heroic efforts to keep the Order Entry subsystem on schedule, it has fallen behind and used the management reserve, you are now expected to be two days late. The Logistics subsystem can no longer start on schedule, and the contractors are booked to start. What are you going to do?
6. Suppose you had six independent teams, each working on a different subsystem. Given what you know about this project, how would you structure the project team? What are the strengths and weaknesses of your choice? What are some potential risks, and how would you plan for them?
7. Generate the Resources Breakdown Schedule (RBS) for managing the Inventory Management subsystem and choose an appropriate Project Life Cycle Model (PLCM) you will use. Rank-order the specific models from best-fit to least-fit and state your rationale for the ranking. Select from the Linear, Incremental, Iterative and Adaptive PMLC model. Be specific.
8. Which subsystems would you develop using the Agile model? Be specific as to which model you would choose and why. List any advantages and disadvantages that will result from your decision.
9. Generate the RBS for the PDQ factory location software application. Comment on the missing or partially defined functions and features. In generating the RBS consider such questions as these: How many factory locations should there be? Where should they be? What criteria should be used to evaluate a location? Justify the number of delivery trucks that will be needed?
Hints on Logistic Subsystem The logistics subsystem is very complex. Although it may not seem obvious at first, the complexity begins with the goal statement. You probably prefer a goal statement that says something about the time from order entry to order fulfillment. Do you want to minimize this time? That is certainly what the pizza customer has in mind. Or would you rather minimize the time from when the order was ready to be delivered until the time it is delivered? That is certainly what PDQ has in mind for the delivery of a quality order. Your choice for PMLC model to use is between APF and INSPIRE. Ether model will work just fine. The choice might depend on which approach the client is most comfortable with.
10. What other projects within the PDQ Case study would you recommend should benefit from the PMLC models in the course?