Project Management

CIS 8000

PIZZA DELIVERED QUICKLY

Pizza Factory Software System

04/27/2015

Team Members

Dengbing Zhao

Dottie Sampson Fanyi Meng Jason Hawkins

Zhenbo Hu

Background

PDQ had a tough business with its home delivery service in the last 5

months.

30% sales drop from home delivery service

PDQ CIO Jack: “Let’s work with FZJP Inc. team to fix this issue.”

Executive Summary

The purpose of the Pizza Delivered Quickly (PDQ) project proposal is to assess the external

and internal environments for the company, establish the goals and objectives for the company,

define the operational strategies, and develop action plans to implement the identified strategies.

The external environment for PDQ is highly competitive. There are local and national chains that

compete for the same customers PDQ targets. Of these, Pizza Hut and Dominoes Pizza are the

strongest competitors. Recently PDQ has lost 30 percent of sales revenue due mostly to a drop in

their home delivery business. They attribute this solely to their major competitor, Dominoes, who

recently promoted a program that guarantees 45-minute delivery service from order entry to home

delivery.

The internal environment at PDQ is strong; however, the executive team has recently

acknowledged that their biggest weakness is their failure to update their technology. PDQ

currently uses computers for in-store operations and the usual business functions, but otherwise is

not heavily dependent upon software systems to help them receive, process, and provide home

delivery to their customers. The pizza industry is a highly competitive and mature market and, since

the popularity of the Internet as well as mobile commerce is transforming the traditional method of

ordering a pizza, overcoming this weakness is paramount to their business strategy.

The proposal is for the development and implementation of a software application system

which identifies local pizza factories, and the creation of the software system needed to operate

them. The project involves developing several software modules consisting of a Pizza Factory

Locator Subsystem, Order Entry Subsystem, Order Submit Subsystem, Logistics Subsystem,

Routing Subsystem and Inventory Management Subsystem. Testing will be done continuously and

in stages. The first stage is to develop and test the software components and the communications.

The second stage will be to integrate a navigation algorithm to ensure correct routing of the orders

to the appropriate factory and/or delivery van. The final stage will be to deliver, install and train

identified staff.

With the implementation of this system, PDQ can achieve its goal to increase revenue by

30%, while maximizing the interest of all stakeholders, which includes their customers, employees,

shareholders, and the community at large. This system will be instrumental in PDQ’s quest to have

the most advanced Quick Service Restaurant (QSR) mobile ordering site in the U.S., while

reestablishing market share in the home delivery section of their business, and gaining competitive

advantage over the competition.

Contents

Background ............................................................................................................................................ 6

Customer Statement of Requirements ..................................................................................................... 7

Technical Approach ............................................................................................................................... 11

Agenda for Project Scoping Meeting ...................................................................................................... 14

Detailed Statement of Work .................................................................................................................. 16

JPSS Sessions ........................................................................................................................................ 14

Final report ........................................................................................................................................... 18

Executive Summary........................................................................................................................ 18

Overall success of the project ......................................................................................................... 21

Technical requirement ................................................................................................................... 22

Strengths and weaknesses of the approach ..................................................................................... 22

Appendix: ............................................................................................................................................. 24

Background

Pizza Delivered Quickly (PDQ) is a local chain of 40 eat-in and home delivery pizza stores.

Starting in 2007, PDQ had a guarantee that customers would receive their pizzas within 45 minutes

of placing an order or they would receive the pizzas free. The guarantee was reduced to $3 off in

2012. In 2013, the company settled a lawsuit brought by the family of an Indiana woman who had

been killed by a PDQ delivery driver, paying the family $2.8 million. In another 2014 lawsuit,

brought by a woman who was injured when a PDQ delivery driver ran a red light and collided with

her vehicle, the woman was awarded nearly $80 million, but accepted a payout of $15 million. The

guarantee was dropped that same year because of the public perception of reckless driving and

irresponsibility.

PDQ now advertises one-hour delivery. Recently PDQ has lost 30 percent of sales revenue

due mostly to a drop in their home delivery business. They attribute this solely to their major

competitor who recently promoted a program that guarantees 45-minute delivery service from order

entry to home 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 them receive,

process, and provide home delivery of their customers ‘orders. In order to compete in the home

deliver market, the company must invest in the development of a software application to identify

local ‘‘pizza factory’’ locations and create the software system needed to operate them.

Customer Statement of Requirements

Dee Livery, President of Pizza Delivered Quickly Inc., is concerned about PDQ’s inability

to guarantee 45-minute delivery service from order entry to home delivery, like its competitor and

the significant drop in the company’s home delivery business, which has yielded a 30 percent

decrease in sales revenue. She has charged Pepe Ronee, the Supervisor of Computer Operations,

and Dottie Sampson, the Chief Operations Officer of PDQ Inc. with the task of overseeing the

development a software application that identifies ‘‘pizza factory’’ locations and creates the

software system needed to operate them. Ms. Livery has made this a top priority and has stated that

the future of the company is dependent on the success of this project. The aim of this project is to

develop a software system that would increase the efficiency of the delivery process. The project is

focused on making the home delivery fully automated such that it is easier to guarantee 45 minute

delivery. According to Pepe Ronee, there are 6 required components of the software project:

1. Pizza Factory Locator Subsystem designed to find the pizza factory locations. The

Chief Operations Officer has stressed the fact that 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.

2. Order Entry Subsystem which will support store and factory operations.

Telephone orders will come to a single location, be taken there and then 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 COTS (commercial off the shelf) order

entry software

3. Order Submit Subsystem which 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.

4. Logistics Subsystem which requires 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

5. Routing Subsystem which will be a routing subsystem for the delivery trucks. The

Chief Operations Officer wants a system that includes the installation of GPS

systems in all the delivery trucks.

6. Inventory Management Subsystem to manage inventories at all stores and factories

and automatically reorder from the single vendor that PDQ has been using since it

first started in the business.

Problems with the primitive system:

As noted by Ms. Livery, the traditional use of computers for in-store operations and the

usual business functions is no longer acceptable from a competitive stand point. PDQ’s outdated

system has the following drawbacks:

Inefficient process for receiving and processing orders for home delivery

Delayed ability to provide timely in-store service or competitive home delivery

Customers are technologically savvy and tend to heavily utilize mobile devices. PDQ

currently cannot meet this need.

Software Solution:

We propose a software solution to the above problems which would allow PDQ to

streamline the operational processes and reduce the pizza delivery time to 45 minutes or less.

The order entry system would allow customers the option of placing their orders from a telephone,

computer or any mobile device. For customers who prefer to speak with a staff member, once they

provide the delivery zip code, they will be routed to the assigned pizza factory. To accomplish the

objectives, FJZP recommends PDQ implement facilities for central order-entry location and storage

for products. These locations will have the capability to receive all incoming calls and online

orders. Once the order(s) are completed, they will be routed to the nearest store front or pizza van

for delivery or pick up. Each facility is zoned by zip codes. They will submit orders to PDQ’s store

fronts and vans within a two to three mile radius from the customers. To reduce production time

required to prepare and bake the pizzas, FJZP recommends PDQ adopt the competitor’s production

model, whereby the more popular pizzas such as pepperoni, cheese, supreme, and meat lovers are

pre-made, frozen and oven-ready to bake in 10-15 minutes.

BUSINESS PROCESS DIAGRAM: PIZZA DELIVERED QUICKLY (PDQ)

ORDER PAY

PD

Q I

nc.

Cu

sto

mer

Enter order system (online) Provide delivery New customer Make menu Confirm Enter credit card Receive

zip code enters additional info selections order & payment info order

OR price confirmation

OR OR

Call 800 telephone number Returning customer Indicate CASH

to place an order confirms delivery address transaction

PD

Q I

nc.

Piz

za F

acto

ry

Facto

ry C

lerk

Telephone order Online order

routed to routed to

assigned pizza assigned

factory pizza factory

Piz

za C

hef

Bake pizza

Deli

very

Dri

ver

Deliver pizza Receive CASH pymt/ Close out

sign for credit pymt transaction

Technical Approach

By applying this methodology, the time required for order preparation is reduced, which

fosters a critical step in the process for faster delivery time. Logistics is addressed by assigning

drivers to specific zip codes to reduce delivery time. Each driver is responsible for delivering

orders specific to their designated delivery zone. Customers receive an order confirmation are

informed upon their order-entry delivery time is 45 minutes or less unless they want a specialty

order. The optimization of the inventory management subsystem will allow store managers to

submit orders for morning delivery of raw materials needed to fulfill production requirements at the

various locations. To address the routing subsystem for drivers and pizza vans, GPS systems are

installed for timely and accurate identification of delivery location which subsequently reduces

delivery time. Customers will have the option not only to pick up their order(s) from store fronts

but also from pizza vans that are centrally located in business parks for faster service. As

mentioned, pizza vans are mobile but are utilized primarily in business parks for lunch and dinner

hours. If a customer chooses to pick up their order from a pizza van, then their order(s) will be

routed and submitted to a van closest to them. This process should satisfy Ms. Livery’s

requirements to reduce delivery time from one hour to 45 minutes or less, stabilize and increase

revenue sales, and create an IT infrastructure which aligns PDQ’s business strategies with an

advanced information system.

Order Entry

Purchase software from IBM to implement a centralized order entry program to receive

incoming calls and online orders for PDQ.

IBM has created a platform to centralize orders to one or multiple locations. This platform

is user friendly and establishes a well-integrated system for business strategies.

Training regiments will be implemented for all personnel

Inventory Management

This application will enable management to monitor and control products. In addition,

managers can order products for reimbursement from central order facilities.

Develop Facility Locator Application

Design Service Area for facility to centralize orders, submit orders, and deliver products to

designated store fronts or pizza vans.

Set up store/van location database by designating each facility to service stores within

assigned zip codes.

Match order address to closest store front or pizza van for delivery or pick up two-three

miles radius from customer’s location.

Develop Logistics Application

Design Service Area by assigning drivers to specific zip codes and installing GPS systems

for accurate and faster delivery time. Additionally, install similar systems for pizza vans.

Set up store/van location database for customer delivery or pick up.

Match order address for closest store front/van for faster delivery service.

Develop Order-Submit application

Set up store/van location database for centralized order intake to submit orders to closest

pizza chain.

Distribute order to store/van location two-three miles radius from customers’ location

Display order on store/van monitor for order submission to the designated location to

process the incoming order and delivery.

Agenda for Project Scoping Meeting

Agenda for Project Scoping Meeting.docx

Session of JPSS

Agenda for JPPS Session 1

Agenda for JPPS Session 1.docx

Agenda for JPPS Session 2

Agenda for JPPS Session 2.docx

Agenda for JPPS Session 3

Agenda for Session 3.docx

Work Breakdown Structure

1. Receive Order

1.1 Order Entry Subsystem

1.1.1 IBM Sterling Order Management – Order Entry

1.1.1.1 Purchase IBM Software

1.1.1.2 Implement IBM Platform

1.1.1.3 Train Employees

1.2 Locator, Logistics & Inventory Subsystems

1.2.1 IBM Sterling Order Management – Inventory

1.2.2 Develop Locator Application

1.2.2.1 Design Service Area

1.2.2.2 Set store/Van Location

1.2.2.3 Match Order Address

1.2.3 Develop Logistics Application

1.2.3.1 Design Service Area

1.2.3.2 Set store/Van Location

1.2.3.3 Match Order Address

1.3 Order Submit Subsystems

1.3.1 Develop Submit Application

1.3.1.1 Set Store/Van Location

1.3.1.2 Distribute Order To Store/Van

1.3.1.3 Show Order On Store/Van Monitor

2. Process

3. Home Deliver

3.1 Routing Subsystem

3.1.1 Develop Routing Application

3.1.1.1 Design and Develop Routing Planning Package

3.1.1.2 Embed GPS Function in Package

3.1.1.3 Synchronize Order Information To Delivery Trucks

3.1.1.4 Install Package and GPS on Delivery Trucks

3.1.1.5 Delivery Commissioning

Detailed Statement of Work

The software application project for Pizza Delivered Quickly is mainly focused on

implementing and optimizing the six subset systems. After constructing the Requirements

Breakdown Structure, consideration will be given to the constraints and dependencies of the

activities and tasks. Once this has been accomplished, the Project Network Diagram is developed,

to include the Task ID and duration on each task. In the first activity, once we implement the on-

shift software, we can quickly move onto the next activity. The task of user training is implemented

in parallel, in order to save the total time for the project. Once the Project Network Diagram has

been finalized, the critical path can be identified as indicated stars below.

Figure 1: Project Network Diagram with critical path ( labels critical path)

Figure 2: Project Network Diagram with slack

Activities and Gantt chart

FINAL REPORT

Executive Summary

FJZP Inc. has been retained to resolve a business issue for a specific enterprise entitled,

Pizza Delivered Quickly (PDQ). PDQ reports a 30% loss in revenue sales from the point of order-

entry to their home delivery service. The loss is contributed mainly to their major competitor’s

advertisement of a 45 minute delivery time. PDQ advertises a 1 hour delivery policy. Their

Computer Operations Manager has been assigned the task to create six software applications to

enable the company plausibility to maximize their earning potential. FJZP’s Project Management

Team offers a proposal to optimize PDQ’s software cohesively. Strategically, the optimization

process would maximize production, calibrate and reorganize the necessary steps for faster delivery

time, and ultimately increase revenue sales which will create opportunity for PDQ to expand its

brand.

To accomplish the objectives; FJZP recommends PDQ implement facilities for central

order-entry location and storage for products. These locations will have the capability to receive all

incoming calls and online orders. Once the order(s) are completed, they will be routed to the

nearest storefront or pizza van for delivery or pick up. The delivery system is zoned by zip codes

and will submit orders to PDQ’s storefronts and vans within a two-three mile radius from the

customers. To reduce production time required to prepare and package the pizzas, FJZP

recommends PDQ adopt Little Caesar’s production model. The more popular pizzas such as

pepperoni, cheese, supreme, and meat lovers are pre-made, frozen and oven-ready to bake in 10-15

minutes. By applying this methodology, the time for order preparation is reduced, which fosters a

critical step in the process for faster delivery time. Logistics is addressed by assigning drivers to

specific zip codes, so that each driver is responsible for delivering orders specific to their designated

delivery zone. which will also aid in reducing delivery time. Customers are notified via order

confirmation of their specific 45 minutes or less delivery time, unless they have placed a specialty

order. The optimization of the inventory management subsystem will allow store managers to

submit orders for morning delivery of raw materials needed to fulfill production requirements at the

various locations. To address the routing subsystem for drivers and pizza vans, GPS systems are

installed for accurate delivery location which reduces delivery time. Customers will have the option

not only to pick up their order(s) from storefronts but also from pizza vans that are centrally located

in business parks for faster service. As mentioned, pizza vans are mobile but are utilized mainly to

service business parks for lunch and dinner hours. If a customer chooses to pick-up their order from

a pizza van, then their order(s) will be routed and submitted to a van closest to them. This process

should satisfy Dee Livery’s requirements to reduce delivery time, stabilize and increase revenue

sales, and create an IT infrastructure which aligns PDQ’s business strategies with an advanced

information system

Figure 3: Variance graph

The cumulative variance graph shows two lines which represent percentage of planned tasks

completed and percentage of tasks actually completed. At the beginning of the project, we followed

the schedule planned at the beginning. As the project was progressing, we had some time delay,

which caused the project to be finished behind schedule. In spite of the delayed completion time,

the project still finished within an acceptable time variance.

Figure 4: Milestone trend chart

Our milestone diagram was scaled by days, and we tracked our project process every ten

days. The difference between planned days and actual days was measured at the end of each ten day

period, and this difference was indicated on the milestone diagram until the project was completed.

As noted on the milestone diagram, we had one-day negative time variance at the end of ten days,

fifty days, and sixty days.

Figure5: Project progress graph

Based on the progress diagram, we had a negative time variance, which indicates the

presence of slack in the project schedule. However, at project completion, it was noted that it took

longer that we had planned at the beginning.

Overall success of the project

The goal was to complete this project in approximately 72 days. Based on monitoring the

process of the project, there was some time delay, which extended the time need to complete the

project by several days. The project was finished successfully and within the established resource

constraints. In addition, the project team met all objectives and success criteria as outlined at the

beginning. During the course of the project, the team had a wonderful time discussing and planning

the details of the project. When we had different ideas, we discussed together and figure out the best

way. Through our group work, we finished each project step successfully until we finished the

whole project successfully.

Technical requirement

Technical requirement No. Subsystem Product Technical requirement

1 Order entry

IBM Sterling order management

1,Easily integrated with TCP/IP-based products 2,Touch-control operation 3,Integrating capability with payment system 4,HTTPS connections

2 Locator Pizza Locator 1,TCP/IP-based platform

2,Customized interfaces 3,Centralized database

3 Logistics Pizza Logistics 1,TCP/IP-based platform 2,Exact address match solution 3,Centralized database

4 Inventory IBM Sterling order

management

1,Easily integrated with TCP/IP-based products

2,Touch-control operation 5 Routing Pizza routing 1,Automatic sorting of delivery address

2,Periodically update of GPS map

Strengths and weaknesses of the approach

Now, the project is going to close very soon. We as a project team need spend some time to

look over the whole project again. What we have learned from the project, and what are our

strengths and what are our weaknesses that we realized during the project.

Strengths

1. Inventory management: This is the most important and competitive feature for our operating

systems, compared with our competitors in the Pizza Delivery Market. We are using

Material Requirement Planning (MRP) to plan and smooth our purchasing flow. It helps us

maintain the inventory in a very reasonable level. Thus it will lead us to most cost efficient

operation and be competitive among the competitors.

2. Routing Optimization: All the delivery trucks are equipped with GPS systems, which will

interact with our Routing Subsystem about its most current location and the traffic condition

on the road. The Routing Subsystem will do the on-line analysis and quick response to the

most optimized routs, in order to guide the delivery truck to finish the delivery quick and

time saving.

3. Process optimized: Using the most advantage technology, we bought some of the

benchmarking system in the field and implemented it. We also did a lot of development to

customize them systems according to our business operation model. During the test phase,

we can realize that the process has been optimized tremendously, the total Pizza delivery

time has been reduced as expected.

Weaknesses

1. Communication: Communication is always very important and a risk to the successful

project in the Project Management Life Cycle (PMLC). Even though we didn’t have big

problem on the communication during the project, we still can not say the communication

was efficient. In future, we can use collaborate website to help communicate and share the

important documents during the whole projects. Make sure all the project team can get the

most updated and enough information about the ongoing project.

2. User Training: We had implemented and customized the six subsystems for the company.

And there are plenty of features and functions available. We also conduct the user

acceptance test with the key users in the company. But the company still needs the complete

process on how to provide the end user enough training on the new systems and all the

functions should be well documented as operation manuals by the key users from the

business prospective. This is the very important step to make sure the system are well and

fully used in future in their daily work in the business department.

Overall speaking, this is a very successful project. But we can still learn a lot from the whole

PMLC, and do even better in the future projects.

Appendix:

1, POS

POS_PizzaQuick.docx

2, WBS

WBS_PizzaQuick.docx

3, Resource Schedule

WBS Task name Duration

1.1.1.1 Purchase IBM software 4 days

1.1.1.2 Implement IBM platform 2 days

1.1.1.3 Training employee 10 days

1.2.2.1 Design service application 20 days

1.2.2.2 Setup store/van location database

15 days

1.2.2.3 Match order address 4 days

1.2.3.1 Design service area 7 days

1.2.3.2 Setup store/van location

database

15 days

1.2.3.3 Match order address 4 days

1.3.1.1 Setup store/van database 15 days

1.3.1.2 Distribute order to store/van 7 days

1.3.1.3 Show order on store/van monitor

3 days

3.1.1.1 Design and develop routing

planning package

20 days

3.1.1.2 Embed GPS function in package

15 days

3.1.1.3 Synchronize order

information to delivery trucks

3 days

3.1.1.4 Install package and GPS on delivery trucks

15 days

3.1.1.5 Delivery commissioning 10 days

Table1: Time estimation

Labor $144,000

Materials $6,000

Equipment $7,000

Service $5,000

Software $7,000

Hardware $2,000

Facilities $1,500 Table 2: Cost estimation

4, Final deliverables

Final deliverables.docx

5, PDS(Project Definition Statement)

PROJECT DEFINITION STATEMENT.docx

6, Project progress state

Time in days Percentage of tasks planned completed

Percentage of tasks actually completed

0 0 0

4 5.88 6

6 11.76 13

7 17.65 20

16 23.53 27

20 35.29 35

22 41.18 40

26 47.06 42

35 58.82 48

38 64.71 57

39 70.59 63

53 76.47 69

54 82.35 74

61 88.24 78

64 94.12 85

74 100.00 88

7, Project proposal

IT project proposal final.docx