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Project Management
EXECUTIVE SUMMARY
Development of the automated warehouse system for Asahi Company is the major
aim of this research report. For attaining this aim author has focused on different technical
and construction issues which can affect this project in negative manner. Along with this,
research has also focused on different project management techniques and other technologies
which can help in resolving these issues in appropriate way. Author has used Gantt chart,
PERT and critical path analysis for estimating the time which will be required for completing
this project in effective manner. Further, accomplishment of this project will help in reducing
the cost of the organization as well as also beneficial for optimum utilization of resources.
TABLE OF CONTENTS
1. INTRODUCTION ................................................................................................................................... 5
Overview ............................................................................................................................................. 5
2. PROBLEM IDENTIFICATION ................................................................................................................ 8
2.1 Clear and comprehensive problem statement ............................................................................. 8
2.2 Thorough understanding of industry client’s needs ..................................................................... 9
3. Value proposition .............................................................................................................................. 11
3.1 compelling or unique value propositions for stakeholders ........................................................ 11
3.2 Concise description of the products or services offered ............................................................ 15
4. Literature review ............................................................................................................................... 18
4.1 Introduction ................................................................................................................................ 18
4.2 Definitions ................................................................................................................................... 18
4.3 Importance of automation .......................................................................................................... 18
4.4 Scope of warehouse automation ................................................................................................ 20
4.5 Issues with warehouse automation ............................................................................................ 21
4.7 Challenges in warehouse automation ........................................................................................ 22
5. Project scope, aim and objectives .................................................................................................... 24
5.1 Project scope ............................................................................................................................... 24
5.2 Aim .............................................................................................................................................. 26
5.3 Objectives.................................................................................................................................... 26
6. Project plan ....................................................................................................................................... 26
Project plan ....................................................................................................................................... 26
Methods ............................................................................................................................................ 31
Resources .......................................................................................................................................... 31
Task breakdown ................................................................................................................................ 32
Team work allocation ........................................................................................................................ 35
7. Conclusions ....................................................................................................................................... 36
8. Presentation ...................................................................................................................................... 40
references ............................................................................................................................................. 41
TABLE OF FIGURES
Figure 1 Stakeholder Matrix .................................................................................................... 12
Figure 2 Stakeholder involvement ........................................................................................... 13
Figure 3 Supply chain integration ............................................................................................ 16
Figure 4: Gantt chart for project planning ............................................................................... 30
Figure 5: Network Diagram for project plan ........................................................................... 30
Figure 6: Work Breakdown structure ...................................................................................... 33
Figure 7: Layout of warehouse ................................................................................................ 34
LIST OF TABLES
Table 1: Project plan for automated warehouse system for Asahi........................................... 27
1. INTRODUCTION
Overview
Globalisation and modernisation has provided significant scope to the business units
and has developed their markets reach to expand beyond borders. These global entities are
driven across the continents to ensure effective market growth. For keeping the expenses and
the cost of manufacturing process down, the marketers are forced to keep looking for
developing and establishing the production units near to the places where the cost of labour
and materials is low (Chen, Cheng and Huang, 2013). Supply chain management is the
concept which has to be considered as the mechanism which provides an oversight over
materials, information and finances and also their movement process from the chain of
supplier to producer to wholesaler to retailer to the ultimate consumers. The concept is also
concerned with the coordination and integration of the mentioned chain or the flow both
within and among the company. According to Rouse (2017) the ultimate goal of any of the
effective supply chain management system is to bring reduction or minimize the inventory
and with an assumption that the goods will be available whenever they are required. The
SCM is also known as the art of providing the Right products, at Right place, at Right time
and with a Right cost to the consumer. Supply chain strategies are considered to be the
backbone of the business organizations and all the operational activities which are carried out
within the organizational structure of the entity. If a product has been introduced by a
business organization then it is of essential for the entire market in the region and also by all
the sales outlets to make the availability of that product so that the consumer can buy that
product. Any of the conditions due to which the product was not made available in the market
may bring a drop in the interest of the consumer for that product or service (Majid, Zakaria
and Keyvanfar, 2012). Inventory control and inventory visibility are the two most crucial and
significant concept for the concept. The supply chain system is all about storing the goods in
the warehouses so as to bring a deduction in the costs and expenses which were earlier spent
on the transportation and delivery. Warehouses play a significant role in this mechanism and
as the world is stepping ahead towards technology and modernisation the concept of
automated warehouses for the supply chain management system will be the most suitable
option (Windmann, Niggemann and Stichweh, 2013). An Automated warehouse is the
facility where all or some of the operations related to the storing, retrieving and movement of
goods are carried out with the help of the technological mediums and automated systems. The
concept has been proven beneficial for the business organizations in many ways such as
making use of automations minimizes number of expenses to an extent which are associated
with running the warehouse in lo term. One more benefit is that it provides a sense of greater
security to the goods stored in it and also to the workforce working in it (Gökçe and Gökçe,
2013). Automated warehouses are well versed with a number of updated and new features
such as movement of goods is done by the robots along with conveyors and overhead pulley
systems, the goods are tagged so that they will be traced by the computers and inventory is
continuously updated while objects move in and out of the warehouse (Ullrich, 2015).
Automated storage and retrieval systems (ASRS) are used in these warehouses where robots
store the goods on the basis of best location and available space. As the report has been
analysed on Asahi Beverage Company, the use of automated warehousing will be proven
very much beneficial for the business corporation.
About the company
Asahi beverage has a rich and varied history of marketing quality alcohol and non-
alcohol beverages with a very strong portfolio which consists of number of well-established
household brands and innovations which are new-to market (Asahi. 2016). The company is a
member of Asahi group holding, one of Japan’s leading beverage companies, and which also
constitutes of some of the Australia’s and New Zealand’s most successful beverage
businesses. This also includes many other multinational brands such as Schweppes Australia,
Asahi Premium beverage, Independent Liquor and The Better Drinks Co. Asahi beverages
started to form in 2014 when the company also announced the plans for the integration of the
operations and the functionalities of Schweppes Australia and Asahi Premium beverage. And
after that the company further announced the extension plans for the integration for including
Independent Liquor in New Zealand. At the current state the company has provided
employment to over 2400 individuals across New Zealand and Australia with having
manufacturing units in both the nations (Finch and Zhang, 2013). These practices aids in
minimization of the impacts on the environment and also helps in the development and
bringing up the standard of living and livelihoods of both the employees and also of the social
communities around them. The company have a corporate philosophy of satisfying the
customers by providing the best quality and integrity and also side by side promotion of the
thought of healthy living and the enrichment of the society. Making this strategy practically
in the local markets of Australia and New Zealand, the company has started focusing the
efforts on the three specific areas: Environment, Beverages and Health, People and Society.
Significance of technology in food and beverage industry
Food and beverage industry is one of the highest growing economies in the world.
The companies have created a significant impact on the national income and overall
development of different countries. Tank, (2015) analysed that needs and demands of the
consumers has been changing and this has resulted in making the stated industry as highly
dynamic. Soft drink industry is prospering highly in the economy. Brewer and Dittman,
(2013) stated that the need of carbonated and fruit drinks are continuously developing within
the economy and has become the basic need of the consumers. Different researches and
surveys have revealed that soft drink market has is continuously developing at a high pace
because the product has become an integral part of eating habits in countries such as USA,
UK, Australia, Russia etc. High demand calls for high supply in the market in order to
effectively meet expectations of the people. Leading soft drink brands such as Pesico and
Coca Cola has adopted highly advanced production and distribution techniques to survive in
this intense rivalry. Technology plays an integral role in the success and growth of the
business. Every aspect of manufacturing in the present era seeks effective technical
substitution to support the development and growth aspect of projects. Asahi Beverages has
developed a significant brand identity in the market. The company has analysed that its
business operations can be effectively optimised though well define technological means
which will help the company in attaining high and significant development aspects. In
addition to this the business development measures of the company will become highly
productive through effective technological operations. This will help the business in creating
a well defined growth measures in the market. Technology has affected the quality of
products and services for the companies as well. Automated production system for example is
the area where production operations are optimised while managing its quality, speed and
effectiveness. Thus technology has contributed in businesses to grow and expand in the
market in an effective and significant manner. Asahi Beverages analysing the same, will be
adopting automated warehouse system to optimise storage, sales and distribution aspects of
the firm.
The Overview of automated warehouse
Modern logistics warehouses and distribution centers are designed on the basis of
dozens of optimization studies (Asahi, 2016). In consequence of that, Warehouse
Management systems (WMS) become significant and more complex and users find it hard to
manage. Automated warehouses use extensive conveyors, sort equipment, automated storage
and retrieval systems and other material handling solutions that move the goods to the
workers i.e. they are ‘goods to man’ warehouses. Loads are stored in the racks and retrieved
either automatically or in a semi-automated fashion. The heights of AS/RS systems can vary,
depending on the application. The highest systems are 100 feet high. But these are few and
far between. Better utilization of storage and retrieval equipment helps businesses in
enhancing the organizational performance in the competitive economies (Rouse, 2017).
Moreover analyzing the cost of labor as one of the highest and major source of organizational
fixed cost, reduction in manpower also leads to significant benefit to the company overall.
2. PROBLEM IDENTIFICATION
2.1 Clear and comprehensive problem statement
Asahi Company is planning to construct an automated warehouse which will help
them to improve their supply chain. This system will eliminate documentation no paper
which will be beneficial for them. The company was having lot of trouble in recording and
analysing inventory on paper. It not only consumes time but it also affects the efficiency of
the worker. Asahi Company decided to opt for automation because they were having
problems in their supply chain. But change from a manual system to automated system can be
very difficult. It will have impact on the entire organisation as well as people associated with
it. So, it is essential for the company that they do not underestimate its impacts. The main
problems and challenges which may occur in the automation of Asahi warehouse is given
below:
Technical challenges: The project managers of Asahi Company have to adopt a new
technology in the warehouse. They cannot use the existing technology because it was
completely designed for the manual process. A fully integrated technology can give
competitive advantage to the company, employees and in supply chain. But it will increase
complexities in project management activities. This aspect of change is not at all flexible and
there are many limitations attached to it. Automation of any service requires steady state and
integrated technology (Turner, 2016). It includes the building as well as equipments used in
the process. All these components put pressure on the timescale of the project which cannot
be extended (Alotaibi and Mafimisebi, 2016). The biggest challenge in the project is
technicalities and other complexities associated with it.
Design, planning and layout requirements: Automation has its own limitations and there
may be situations where it is not functional due to uncertain peaks within the throughput.
Designing and planning phase is another challenge for Asahi Company. The investment scale
of the project is high and it requires long horizon for forecasting changes (Martinelli and
Milosevic, 2016). Designing phase begins before the commencement of the project but some
changes have to be done in it during the project due to any uncertain event (Heagney, 2016).
Resistance from staff and contractors: The automation process of warehouse involves lot
of complexities and integration of different systems. There can be situations where the project
managers have to change the entire process so as to complete the project in time and budget.
The employees and contractors may show resistance towards it because it increases pressure
on them (Steyn, Dekker and Visser, 2016). Change management process should be designed
to achieve maximum support from all the stakeholders (Drouin, Sankaran and Muller, 2016).
Stakeholder management is also essential.
Specification and tender related challenge: If the project manager fails to get the correct
specifications then it will increase the cost of the equipment as well as the entire operation. It
is essential for Asahi Company to select right partners and contractors. They need
experienced and competent people who can increase the performance of the project.
Communication and cooperation problems: The automation project of Asahi Company
will involve many contractors and employees. Project manager ahs to ensure that there is no
communication gap during the project. There has to be integration between all the systems
and activities involved in it (Konstantinou and Müller, 2016).
Time constraints: Limited timescale can be another challenge for Asahi Company and their
project. There will be many incidents where the project manager is forced to remove the
testing programme or replace the original plan with any other secondary method.
Stakeholders will also create pressure on the manager to complete the project in the desired
timescale and schedule (Lientz and Rea, 2016).
2.2 Thorough understanding of industry client’s needs
Asahi Company decided to construct an automated warehouse system because their earlier
system had many issues. It was obsolete which affected their cost, flexibly and service. The
main problems and needs of Asahi Company are as follows:
Technology: Asahi Company wanted new and improved technology which will allow them
to produce standardized products. Their existing process included manual processes which
were in effective as per the standards of the company. The automated warehouse system can
be built with the help of Linux platform. This system can be easily integrated with the DBMS
system such as MS SQL, Oracle, IBM DB2 and Sybase (Kucharska and Kowalczyk, 2016). It
will reduce the ownership cost of the company. Bar codes can be embedded on the product
which will have all the essential details of the products. It can be connected with optical
devices, printers, scanners etc (Faria, Araújo and Tereso, 2016).
Operational efficiency: Asahi Company has operational issues because they find it difficult
to obtain information from their system. There has been increase in non-shipment products.
Apart from this, the client wants to reduce their maintenance and logistics expenses. The
automated system of warehousing will help the company to reduce their cost. It will eliminate
non standard products and expired products which will improve the quality of the services
(Huemann, Keegan and Müller, 2016). They had problems in the logistics which will be
eliminated in the new system. They can optimize their inventory flow, accuracy, improved
space utilization, use of put away strategies and effective monitoring system. The
productivity as well as the efficiency of the workers will increase (Gollenia, 2016).
Improved supply chain management: Automated warehousing will improve the entire
supply chain of Asahi Company. Automation of various activities such as put away, sorting,
palletizing and retrieval picking will bring improvement in quality control and labour
efficiency. The company can easily save on materials, equipments and other expenses
(Arends, 2014). It will significantly improve the utilization of the available storage space. It
will also benefit Asahi Company because everything will be centralized. They were having
problems with their existing supply chain and the client needed efficiency system which will
enable them to control everything from one location. Automation will ensure that the trucks
are loaded with full capacity which will reduce the cost of transportation by more than 10%
(Burke, 2013). Apart from network benefits, warehouse automation will also help the
company to serve more stores and they can increase their product range. It will bring many
strategic benefits if the project is completed as per the requirements of the client. It will speed
up their queuing, order picking, planning of batches and the entire process of transportation
(Haimes, 2015), (Jones & Jones, 2015). Asahi Company has already reduced complexities in
their operations, supply chain and distribution which will improve their chances of selling the
goods data low cost online. The need of the client is to increase efficiency and improve their
supply chain. But automated warehousing will add value to their products which is very
beneficial.
3. VALUE PROPOSITION
3.1 compelling or unique value propositions for stakeholders
Attractive services help consumers in attaining high value for money given for
products and services within the market. This helps the business in attaining high growth and
development aspects within the competitive era. Stakeholders are the people who are directly
and indirectly affected by every business decision thus creating a well defined and significant
impact on success of the business (Kamei and et.al., 2012). Asahi Beverages is operating in
food and beverage industry which is vast and dynamic. Stakeholder base for the business is
significant which helps the organization in attaining useful business information thus
ensuring high success prospects.
The organization is currently focusing on developing automated warehouse in
Queensland. This will help the cited company in enhancing its supply chain activities and
will also help in ensuring high sales and demand. Brewer and Dittman, (2013) stated that
demand for soft drink and beverages are high in Australian market. Automated warehouse
will help the business unit in effectively dealing with the rising demand thus ensuring high
sales for the company. Moreover due to intense competition from global brands such as
Pepsico and Coca cola pose significant threat to the stated unit. Thus effectively supply is
critical aspects which will ensure brand identity for the organization.
Figure 1 Stakeholder Matrix
(Source: Stakeholder Analysis. 2017)
The above model portrays the power interest matrix which reflects a well defined
position of different stakeholders and their power and interest within the organization. On the
basis of stated model the organization will adopt the strategies to deliver high value to the
stakeholders (Iwanaga, El Sawah and Jakeman, 2013). It will be framed on the basis of power
and interest in the organization. The given figure clearly represents a list of major
stakeholders and their position in different quadrants which will help in developing effective
strategies.
Figure 2 Stakeholder involvement
(Source: Stakeholder Analysis. 2017)
Major stakeholder involvement strategies include:
Manage closely: The quadrant which represents a positive association between power
and interest for the stakeholders has a significant impact on business growth. This
quadrant involves the most important stakeholders of the business unit. Ashai
beverage has an effective stakeholder group for the business which has significant
power and interest in the organization (Tank, 2015). These involve investors and
senior management of the business. In order to provide high value and recognition to
them well defined strategies are adopted and involved. Involvement of stakeholders in
business decision making process, developing effective communications on regular
basis, sharing financial benefits with them are few strategies which provide them with
high satisfaction and motivation.
Keep satisfied: The stakeholders who have high power but low interest in business
operations are also significant for organizational growth and development. They have
significant power to affect effective operations of the company (Finch and Zhang,
2013). Government and local authority of Australia falls in this category. The
mentioned stakeholders have high power however their interest in business operations
and profitability is low. In order to manage their satisfaction level within the market
Asahi beverage must develop partnership with them by effectively revealing the
detailed operational aspect and transparency of business activities (Mathrani and
Mathrani, 2013). Moreover adopting legal and ethical framework of operations and
undertaking social development and well being activities helps in enhancing the faith
and trust of the authority upon the business unit. They thus effectively support the
developmental aspects of the cited unit.
Keep informed: There are certain stakeholders who have high interest but their power
in operations is low. This creates an insignificant impact on business development
measures. In order to maintain high level of satisfaction for these stakeholders
strategies of keeping them informed about organizational operations and growth is
critically important. It will help the business to ensure managing brand identity and
high level of success in the market (Battista and et.al., 2014). Developing annual
reports, audit plans and maintaining transparency of company performance which
helps in analysing and understating the needs stakeholders such as employees and
customers. Hence developing success within the economy will be effective and
significant.
Monitor: Asahi Beverages is a soft drink manufacturing firm. The suppliers of the
organization are significant however they have low power in business operations due
to a fact that unlimited suppliers are available within the economy for the same.
Interest and power of local public is also low. Hence the overall impact of the stated
stakeholders is very low thus close monitoring is required for the same. This will help
the organization in creating a well defined impact on business development within the
current competitive market (Gökçe and Gökçe, 2013). Strategies adopted for the same
will be market analysis, research, monitoring consumer demands and managing
effective competitive evaluation for attaining significant business results.
Overall evaluation of the model reflects well defined developmental aspects which
helps the business to attain effective business objectives. It will contribute in ensuring
high value for all the stakeholders thus ensuring high support and development. Highly
satisfied and motivated stakeholders will thus result in enhancing business development
aspects within the economy.
Value Preposition for stakeholders:
There are varieties of benefits which are offered and delivered to the stakeholders
Values which will be offered to the stakeholders will be as below:
Financial value: Finance plays a significant role in enhancing motivational level of
people. Financial benefits and rewards always help in attaining a positive result for
different stakeholders such as employees, investors, suppliers etc (Gunasekaran and
Ngai, 2012). This provides an opportunity to grow and enhance in the market while
developing a positive relation. Asahi beverages will provide effective financial result
to the associated stakeholders in the market. It will help the business to develop
significant brand equity in the market.
Functional value: In the current competitive era functional value to the stakeholders
helps them in developing a unique brand image of the organization. This will create
high level of brand loyalty within the economy (Ignaciuk and Bartoszewicz, 2012).
Hence Asahi Beverages has thus taken a significant decision to develop an automated
warehouse. This strategy will help suppliers by developing their overall process;
consumers will also be benefitted by attaining timely product availability. In addition
volume sales will also help in delivering positive results for the business.
Emotional value: This aspect is also significant for the stakeholders as it will create a
well defined impact on business development. Emotional value in terms of higher
efficiency, higher sales and developing brand identity will be analysed and observed
by the stakeholders which will highly effective and beneficial for the organization
(Ullrich, 2015). Effective business performance results in enhancing the needs of
security for all the associated stakeholders.
3.2 Concise description of the products or services offered
Asahi Beverages is developing significant market growth within the economy. The
company is planning is expand its operations within the market by creating automated
warehouse for the organizational operations. This will enhance the supply chain efficiency
for the business thus creating a well defined impact on business development. The range of
products and services will be offered to its consumer base. The services which will be offered
by the organization will include:
Intelligent logistics: Asahi beverages will ensure effective and speedy supply chain
system within the market. The organization will ensure that the logistic system is
automated. It will develop the supply chain and transportation system of the business.
The suppliers and distributors will be supported effectively by the same creating a
speedy process of material handling and transportation (Majid, Zakaria and
Keyvanfar, 2012).
Supply chain integration: The business process of Asahi analysed that effective and
well defined working measures would demand a significant and integrated business
process. Supply chain integration refers to synchronization of every business element
and business process to achieve a common goal for organizational success and growth
(Ure and et.al., 2015). Asahi will adopt the stated process in order to create a
significant and well defined impact on business development aspects in the present
situation. It will integrate the information system with functional system along with
internal and external working measures. Supply chain will thus be enhanced and
developed in a significant manner.
Figure 3 Supply chain integration
(Source: Steurbaut and et.al., 2012)
Advanced control and transportation: It has been analysed that increasing demand
has created a technological challenge for the organization because high demand and
low supply has affected the brand identity of Asahi. In order to ensure effective
production while managing the speed and quality of the process advanced quality and
transportation will be adopted in the system (Windmann, Niggemann and Stichweh,
2013). The automated warehouse will adopt robotic process for production and
quality measurements. The storing and distribution will be monitored by automated
quality control system which will act as quality gateway for the production process of
Asahi.
Modular control: Asahi is presently focusing on making the overall business system
to be automated and effective. For the same the organization will induce a modular
and control system to minimize errors and manage the standard warehouse system.
This will ensure the firm in saving time and cost in terms of lead time, ordering time
and transportation cost as well. The sales personnel will closely monitor the inventory
of organizational suppliers through software which will minimize the chances of error
and will also help in managing an effective record of business performance within the
economy. Analysis of this data will provide a reliable and accurate market research
analysis data.
Automated warehouse system will be highly effective and successful approach to
manage the business operations and attain effective results for the business development
aspects (Błażewicz and et.al., 2012). Integrated technology will control the electronic
transport system which will eliminate the manual handling aspects for the day to day
operations of the company. In addition to this adopting and automated warehouse system
will use the technological resources in an optimal manner thus generating beneficial
results (Chen, Cheng and Huang, 2013). However it has also been analysed that complete
dependence over technology may be risky as it will demand highly skilled engineers and
trained employees. Asahi must focus on developing the workforce to deal with automated
working system thus carrying out the business activities in an unrestricted manner.
4. LITERATURE REVIEW
4.1 Introduction
Warehouse automation can significantly improve the supply chain of a company. The
apportionment of logistics, transportation and various other activities related to supply chain
goes beyond 25% of the total cost (Kerzner, 2013). Similarly, it plays a vital role in
improving the satisfaction level of the consumers. The final step of supply chain includes
distribution centres and assembly. New changes will add value to the products which will
improve the loyally of the customers towards the company. Warehouse automation has
become common in large business organisation. They have conveyors, storage, equipments
and advance retrieval system. All of these systems are present in large automated
warehouses. This chapter contains literature which has been gathered from various books,
journals and reports. Even though, warehouse automation has many advantages over manual
warehousing system but there is limited research in this area. The aim of this chapter is to
understand the importance, scope and challenges of automated warehouse project. All the
issues and challenges have to be resolved by Asahi Company to ensure successful
implementation of their project.
4.2 Definitions
Warehouse: According to Schwalbe, 2015, “Warehouse is a building where all the raw
materials and finished goods are stored before they reach to the ultimate consumer”
(Schwalbe, 2015). It includes various processes such as packaging, labelling, removal of
defects, transportation etc.
Automated warehouse: As per Huemann, Keegan and Müller, 2016), “Automated warehouse
includes technology and computerized systems for all the activities including handling,
movements of goods and storage” (Huemann, Keegan and Müller, 2016). There are many
types of equipment which are used in the process such as storage systems, retrieval systems,
computerized guided vehicles, conveyors etc. But it does not include all those operations and
equipments where an operator is used.
4.3 Importance of automation
According to Martinelli and Milosevic, 2016, “An automated warehouse performs many
functions in a supply chain which makes it effective” (Martinelli and Milosevic, 2016). The
main functions are:
Transportation
Making or breaking of bulks and consolidation
Assembling activities
Packaging
Labelling
Controlling and monitoring of quality
Other activities such as removal of defects, outlets etc (Drouin, Sankaran and Muller,
2016).
Returning the goods
Transhipments
Alotaibi and Mafimisebi, 2016 explains that “Automated warehouses have been developed by
companies to add value to their goods and services. Similarly, cross dock activities are
carried out to improve the services offered to the customers”(Alotaibi and Mafimisebi, 2016).
Manual system has many problems and new technology has reduced it to great extent. On the
contrary, Martinelli and Milosevic, 2016 believes that “Cross docking and value added
services have not been utilized by business organisations in their automated warehousing
system” (Martinelli and Milosevic, 2016). Many companies in UK and Australia have not
used these activities in their entire throughput. Apart from this, it has been found that the
sales of many automated companies have increased after its adoption and implementation.
Their efficient supply chain has helped them to grow their sales. The main reasons for the
growth of sales includes increased capacity, accuracy in order placement, enhanced
productivity, reduction in space and better control on the quality. It has positive impacts on
the customer service. In 2015, the sales in Australia increased by 3.2% annually. According
to Jones & Jones, 2015 “The main factor behind the growth in sales is that storage
equipments, retrieval system and automated processes have shown tremendous
improvements” (Jones & Jones, 2015). The use of conveyor, robotics and AGVs has also
increased at a good rate. Even the international sales have shown improvements with the
inclusion of automated services. The sales of top 20 automated companies have increased by
15 % in 2015 (Drouin, Sankaran and Muller, 2016).
The growth of sales has been excellent but there is also a need of improvements in the supply
chain management. Asahi Company is also facing the similar issue and their operations have
been inefficient. Supply chain should be agile according to the development of the market.
The business environment is changing and companies should adopt effective methods which
provide them edge over other people in the industry. As per Arends, 2014, “ Markets have
become unpredictable and the demand is also volatile. These circumstances have led to the
shift towards services and customer satisfaction. Warehousing designing and layout planning
is also an important factor which contributes to it” (Arends, 2014). New techniques ad
principles have to adopt by the project managers so as to increase the space and ensuring
better utilization of available space. All the equipments have to perform to their fullest and
they should be developed to produce high quality goods.
4.4 Scope of warehouse automation
There is high scope of automated warehouse in the industry. It is required in all
industries which some modifications. Equipments such as conveyors, frame dispensers, pick
to light system and product sorting system has been used by many companies. Many large
corporations have already invested huge funds to develop automated warehouse and supply
chain. It has given them competitive advantage in the industry. But Faria, Araújo and Tereso,
2016 opposes this and he is shows concern that “Automation requires huge investment in
technology and techniques. But it may not provide flexibility to the company to tackle
changing business environment and market condition” (Faria, Araújo and Tereso, 2016). This
problem has been identified due to challenges involved in warehouse automation project.
Apart from this, the profile of the product also changes during its life which may create
difficulties in the process. Huemann, Keegan and Müller, 2016 agrees that , “Automation of
warehouses and supply chain makes process inflexible and it causes problems in dealing with
product demand change” (Huemann, Keegan and Müller, 2016). This has been a concern for
many authors and scholars. Steyn, Dekker and Visser, 2016 highlights that “ Many e-grocery
stores and supermarkets have experienced inflexible capacity issues in their business” (Steyn,
Dekker and Visser, 2016). The biggest problem with the automation process is that it causes
over-investments and the business does not reap equivalent benefits from it. This situation
can be harmful for the organisation. It is detrimental for the interest of the company. But
Jones & Jones, 2015 supports automation “Automation systems are used by the company for
their sorting and supply chain management” (Jones & Jones, 2015). This use is viable for
those companies which can easily predict the demand and understand the pattern of sales.
Snyder, 2014 suggest that “Organisations should ensure the long term demand of the
products and then resort to automation process” (Snyder, 2014). Supply chain management
and marketing can deal with this issue and it will provide details to the company in advance.
Warehouse automation will help Asahi Company and it will provide agility to them. For
instance, the company can use cross dock system for stockless system and distribution. This
principle can be used in postponement of production and improvement in value added
services. As per (Alotaibi and Mafimisebi, 2016) “Companies should install conveyors and
sorting system for their cross docking activities which will guide the products to the
warehouse” (Alotaibi and Mafimisebi, 2016). Other activities such as packaging, labelling,
hanging etc can be done in the warehouse area. Automation can be very useful in places
where there is shortage of manual labour or recruitment of new labours can cause
productivity and congestion issues.
4.5 Issues with warehouse automation
The biggest problem in warehouse automation is the cost. They are considered as cost
effective but many researchers and authors have shown their disagreement to it. According to
Huemann, Keegan and Müller, 2016, “Automation will only be cost effective if the company
has large volume” (Huemann, Keegan and Müller, 2016). Many researchers have found that
warehouse automation has reduced the efficiency. They believe that the size and the volume
of operations play an important role in deciding the success and worthiness of the
automations process. Some of the reason which was identified is lack of maintenance,
inappropriate system, difficulties in reconfiguration and problems with the flexibility. As per
Faria, Araújo and Tereso, 2016 “Automation of warehouse will be beneficial only if the
company has wider supply chain” (Faria, Araújo and Tereso, 2016). It will centralise the
entire system which will make it possible for the management to control it. They can avoid
complexities in the business. Apart from this, warehouse automation process causes
difficulties to the company in the initial years. Haimes, 2015 believes that “ It causes dip in
the service level and causes snagging issues” (Haimes, 2015).
4.6 Warehouse automation process
Automation projects have project managers and sponsors. Project sponsors are accountable
for the successful completion of the project and they maintain communication with the
seniors of the company. On the other hand, project manager takes care of daily routine
activities involved in the project. The project sponsors decide the objectives and success
criteria. Asahi Company is planning to automate their warehouse so as to improve their
supply chain. According to (Lientz and Rea, 2016) “Project designing and planning is an
important stage in project management” (Lientz and Rea, 2016). The design is projected in
the specification stage of the project. It includes equipments, interfaces, operating cost,
software needed, layout, building etc. It will need experts, contractors and workers. Apart
from this, a tender is used to find out supplier who will provide all the materials need for the
project. As per Huemann, Keegan and Müller, 2016, “Communication is essential in
automation projects because it is complex in nature and simulation has to be developed for it”
(Huemann, Keegan and Müller, 2016). These simulations help in identifying bottlenecks in
the project. A typical project requires multi disciplinary groups, suppliers and experts who
can design the simulation. The timescale of the project is decided in the planning stage only.
After the commencement of the project, the groups are allotted areas so as to avoid any
disruption in the process.
4.7 Challenges in warehouse automation
Automation of warehouse is not a simple task as it involves various integrated
activities. There are many complexities involved in it due to the development of new process
and technology. According to Martinelli and Milosevic, 2016, “Project managers need
support from experts and technically proficient people to understand each and every process”
(Martinelli and Milosevic, 2016). There can be many instances where the managers find that
the technology is not working. It can affect the entire project which will cause unnecessary
delays. The complexity increases due to numerous testing and checking activities. The main
challenges in the automated warehouse project are as follows:
IT systems: Information technology and automation software is the main part of the entire
project. It has a critical part in the project. Project managers have to work in close relation
with the software development team to monitor their progress (Kucharska and Kowalczyk,
2016). All the modification and changes have to be communicated to them at its earliest. The
most difficult task for IT team is integration of software across various platforms and
systems.
Construction problems: The building and fixtures have to be constructed according to the
plan. But even minor changes in the original plan will affect the entire process. Apart from
this, failure of any process in the construction will cause problems in the entire system
(Huemann, Keegan and Müller, 2016). This has to be considered by the project manager. He
has to develop good relations with the contractors to avoid such issues. Construction problem
has low probability but its impact o n the success of the project is high. Risk management
process has to include this risk in their mitigation plans.
System failure: The failure of any system can cause delays and it will affect the budget. It
can happen at any point of time. It is a big challenge as it can extend the timescale and
schedules which is not allowed. Manger should take necessary precautions and takes
measures to mitigate the risk (Faria, Araújo and Tereso, 2016). Since, many failures happen
instantly and they cannot be predicted. It all depends on the skills and knowledge f the project
manager that how he handles the situation.
Stakeholder’s expectations: Project managers have to develop good relations with the entire
stakeholder. He has to make sure that all the needs and requirements from the project have
been collect in the initial stages of the project (Jones & Jones, 2015). Stakeholders may
demand a change or modification in the existing plan which can become a challenge for the
project. These incidents have to be avoided by the manager by maintaining good
communication with all the stakeholders and sponsor.
Consolidation issues: Consolidation can become a challenge for the project and its
completion. There are larger numbers of people who are working on the project and it is
essential for them to communicate with each other (Drouin, Sankaran and Muller, 2016). For
example, the building and equipments team needs to support the team who are responsible for
the installation of sprinklers in the building. Apart from this, software team and sortation
equipments have to be designed according to the bar codes present on the products.
Coordination has to be ensured for successful completion of project.
Problems with new technology: Automation of warehouse requires steady state. Technical
glitches and problems can cause unnecessary delays and increase in budgets. Ineffective
implementation will defeat the main objectives and deliverables (Alotaibi and Mafimisebi,
2016). Technology is a challenge because many activities and processes have to be integrated
tighter. Unsupportive system will result in changes in the technology which will affect the
schedule as well performance of the project.
Non- performing equipments: There are lot of equipments which are required in the entire
process and even after its completion. It is essential for the company to maintain them
properly so as to avoid any uncertain event which causes delay. Nonperforming assets can
also become a challenge for the project and its completion (Huemann, Keegan and Müller,
2016). Project managers have to ensure that they monitor the performance of different
equipments. Employees should be given training so that they understand the working and
maintain the safety in their operation. It will help the company to increase the performance of
the entire project. Apart from this, all the equipments have to be integrated with different
processes of the project.
5. PROJECT SCOPE, AIM AND OBJECTIVES
5.1 Project scope
Clear project scope
Every project focuses in attaining specific aim in order to specify the business issue
and develop well defined and effective business results for the organizational growth and
development (Steyn Dekker and Visser, 2016). Present projects analyses that an Asahi
beverage has a wide growth opportunity in the market. The project plan will help the
company in developing an effective and well defined automated warehouse system for the
organization thus creating a significant impact on business development and competitiveness
in the economy (Sökmen and Çebi, 2017). The detailed overview of the project plan will help
the business unit in creating a well operated and functional warehouse with high technical
efficiency and operational measures. The project scope focuses on enhancing the business
efficiency within the economy. It also aims at achieving the individual project objectives
while minimizing the cost issues for the firm. The success of the project plan will result in
enhancing the competitiveness and efficiency of the business. The cost with regards to labour
and error rectification will highly be controlled. Thus the business performance will be
developed in the market (Konstantinou and Müller, 2016). By resolving the technical
challenges the business will develop into highly functional firm with optimal working
capacity.
Impact of identified constraints
Every project has to face numerous challenges and issues for successful completion of
the project aims and objectives. The current aim of the project is to overcome the technical
issues by creating well defined automated warehouse for the organization. A list of possible
constraints will be faced by the project manager to initiate and complete it successfully. The
most crucial and significant issue which will be face by the project will be cost factor.
Technological changed and implementation of automated system will demand high
investment for Asahi Beverage. The company will need high financial resources to attain the
technical efficiency and growth within the market. Lack of proper finances may hinder the
project completion directly (Huemann, Keegan and Müller, 2016). Moreover construction
issue is yet another major issue which the project will have to face. In order to develop an
automated system construction of tracts and technological support aspects will be highly
required. To construct an effective facility layout and construct planned changes will be
highly essential for business development. It will also result in creating a well defined
development for the company as well. Moreover issues with respect to labour opposition due
to job insecurities will be another challenge for the business. Operational inefficiency may
also delay project completion thus enhancing the cost of overall project management aspect
within the economy (Schwalbe, 2015). Thus it can be effectively concluded that the
automation of Asahi beverage will be a highly challenging task yet overcoming the stated
issues may effectively resolve the problems and may support the project growth.
Problem translated into clear and specific project goals
Asahi Beverages is focusing on attaining operational efficiency by adopting effective
measures of carrying out business operations within the market. The company will focus on
developing significant results in terms of high quality business performance while ensuring
effective business management measures (Gökçe and Gökçe, 2013). The technical issue of
the company can be effectively resolved by constructing an effective and functional
automated system for the organization. The project goal will thus become to plan and
construct the automated system for business developmental aspects. The issue related to
employee opposition will be resolved by adopting strategic and well defined change
management strategy for the business unit. This will help in minimizing the chances of errors
and restrictions in the business operations (Battista and et.al., 2014). It will also result in
developing clear business goals for successfully implementing the business developmental
aspects within the market. In addition to this development of suitable software and finding
competitive workforce for the project is another major goal of the business (Finch and Zhang,
2013). In conclusion it can be said that the major success of the project depends upon its
timely completion and effective implementation of resources as well.
In-depth investigation
The present project will investigate on different aspects of project management
starting from project stages to project lifecycle (Mathrani and Mathrani, 2013). The current
project is focused on resolving the business issue of Asahi beverages. Thus in-depth
investigation on technical issues and automated warehouse development will be focused and
analysed. In addition to this studies related to construction sites and facility layout for ware
house automation has also been undertaken and studied to attain clear and well defined
results for the business (Iwanaga, Sawah and Jakeman, 2013). Moreover to deal with human
aspects and change management issues, theories of effective change management and its
implementation in the businesses will also be undertaken and successfully analysed to
attained significant business results.
5.2 Aim
The major aim of this research is “to construct a new automated warehouse of Asahi
in Queensland”.
5.3 Objectives
To identify and resolve key business and technical challenges of automated
warehouse project of Asahi.
To determine the most appropriate technology for resolving associated issues of this
project.
To determine challenges relevant to Construction of Warehouse.
To develop project plan and allocation of resources for automated warehouse project
of Asahi.
To recommend appropriate methods for managing technical and construction related
issues of automated warehouse project of Asahi.
6. PROJECT PLAN
Project plan
There are no room for making mistake in today’s economic scenario because it can
affect the financial position in the company in negative manner. So, every organization needs
to develop appropriate plan for implementing any big project. An effective planning helps in
attaining all aim and objectives of the company. As per the given information Asahi company
wants to establish its own automated warehouse so, company needs to implement new
technology as well as should start construction of warehouse also. Therefore, following
planning stages will help in completing this project in effective manner:
Initiation: It is one of the important stages for scope and requirement management of
Asahi for automated warehouse project. For determining appropriate scope and needs
project manager should focus on analysis of the existing and proposed warehouse
system. This analysis will play important role in determining the major problem
associated with the manual system of the company. After analysing the problem of the
organization researcher can define aim and objectives of the automated warehouse
project of Asahi.
Planning: Completing warehouse project is not an easy task for project manager
because he/she needs to develop different plans in this stage. This phase of the project
plan comprises construction plan for a new warehouse building. Along with this,
planning for designing, use of various technologies, coding and development of the
automotive system, etc. Project management methods such as Gantt chart, PERT,
critical path analysis, project management methodologies are some important methods
that can be easily applied by manager at the time of developing and implementing
project plan.
Implementation and control: After developing a project plan organization needs to
move towards the implementation and controlling. Installation, allocation and
monitoring will be major stages for implementing the whole project plan of automated
warehouse system of Asahi. After getting this information project manager can
proceed towards the debugging stage and manage all necessary changes for resolving
issues. Later, for operating this system organization will make arrangement of training
and development sessions.
Project closure: When each and every stage will complete in effective manner then
project manager can close and execute this project. For completing this report and
lessons for future project, manager needs to develop a report.
Therefore, above discussed plan and stages will play important role in resolving
issues of the project of new automated warehouse system for Asahi.
Table 1: Project plan for automated warehouse system for Asahi
WB
S Task Name
Duratio
n
Star
t
Finis
h
Predecessor
s
Resource
Names Cost
1
Automated
warehouse
project of
Asahi
238
days
Mo
n
01-
05-
17
Wed
28-
03-18
$444,000.0
0
1.1
Initiation
36 days
Mo
n
01-
05-
17
Mon
19-
06-17
$82,400.00
1.1.1
Analysing
the existing
warehouse
10 days
Mo
n
01-
Fri
12-
05-17
Administrato
r 1,Project
Manager
$24,000.00
system 05-
17
1.1.2
Analysis of
proposed
automated
warehouse
system
15 days
Mo
n
15-
05-
17
Fri
02-
06-17
3
Administrato
r 1,Project
Manager
$36,000.00
1.1.3
Problem
identification
1 day
Mo
n
05-
06-
17
Mon
05-
06-17
4 Project
Manager $1,600.00
1.1.4 Defining
aim and
objectives
5 days
Tue
06-
06-
17
Mon
12-
06-17
5
Construction
manager,
Project
Manager
$14,000.00
1.1.5 Project
scope
5 days
Tue
13-
06-
17
Mon
19-
06-17
5,6 Software
engineer $6,800.00
1.2
Planning
112
days
Tue
13-
06-
17
Wed
15-
11-17
$174,800.0
0
1.2.1 construction
plan
20 days
Tue
13-
06-
17
Mon
10-
07-17
6 Construction
manager $24,000.00
1.2.2 Plan for
designing and
implementation
25 days
Tue
11-
07-
17
Mon
14-
08-17
9
Contractor
,Software
engineer
$64,000.00
1.2.3 Plan for
technology
15 days
Tue
15-
08-
17
Mon
04-
09-17
10 $0.00
1.2.4 Coding and
development of
system
25 days
Tue
05-
09-
17
Mon
09-
10-17
11,7 System
developer $34,000.00
1.2.5 Resource
planning
10 days
Tue
10-
10-
17
Mon
23-
10-17
12 Project
Manager $16,000.00
1.2.6
Communication
and
coordination
plan
5 days
Tue
24-
10-
17
Mon
30-
10-17
13,12 Project
Manager $8,000.00
1.2.7 Time and
financial
planning
12 days
Tue
31-
10-
17
Wed
15-
11-17
14
Administrato
r 2,Project
Manager
$28,800.00
1.3
Implementatio
n and control
85 days
Thu
16-
11-
17
Wed
14-
03-18
$156,800.0
0
1.3.1 Installation
of automated
system
20 days
Thu
16-
11-
17
Wed
13-
12-17
11,15,12 Software
engineer $27,200.00
1.3.2
Allocation
of roles and
responsibility
to human
resources
5 days
Thu
14-
12-
17
Wed
20-
12-17
17,10
Contractor
,Software
engineer
$12,800.00
1.3.3 monitoring
and testing
20 days
Thu
21-
12-
17
Wed
17-
01-18
18 Contractor $24,000.00
1.3.4
Debugging
15 days
Thu
18-
01-
18
Wed
07-
02-18
19 System
developer $20,400.00
1.3.5 change
management
10 days
Thu
08-
02-
18
Wed
21-
02-18
20
Contractor
,Project
Manager
$28,000.00
1.3.6
Training
and
development of
employees
15 days
Thu
22-
02-
18
Wed
14-
03-18
21,18
Project
Manager,
Software
engineer
$44,400.00
1.4 Project
closure
10 days
Thu
15-
03-
18
Wed
28-
03-18
$30,000.00
1.4.1
Closing and
execution
5 days
Thu
15-
03-
18
Wed
21-
03-18
22,21
Administrato
r
2,Constructio
n manager,
Project
Manager
$18,000.00
1.4.2 Report
writing
5 days
Thu
22-
03-
18
Wed
28-
03-18
24
Administrato
r 1,Project
Manager
$12,000.00
Figure 4: Gantt chart for project planning
Figure 5: Network Diagram for project plan
As per the above discussed project plan Asahi can complete its automated warehouse
project in 238 days with $444,000.00.
Budget
Asahi Company can compare their product cost before and after the automation of warehouse
to understand the benefits of automation. The cost of transportation, packaging, labelling and
salary expenses will reduce after the automation process. Automated warehouse will require
less of people and resources. The company has to spent extra money on equipments and
devices but the total amount will be less than the manual warehousing facility used by Asahi
Company.
Particulars Cost (manual warehousing) Cost (Automated
warehousing)
Transportation $10000 $ 8500
Packaging and labelling $ 6000 $ 5000
Employees salary $ 45000 $ 30000
Equipments rent and cost $ 35000 $ 50000
Office expenses $ 4500 $ 2000
Methods
Automated warehouse project is relevant to construction and information technology.
So, company needs to use appropriate methods for completing this projection in effective
manner. Using these methods project manager can execute the entire project in successful
manner. Project management methods include a set of instruction to manage different
activities of project plan. There are number of interconnected and independent tasks that
require appropriate guide to manage. So, for completing this project, manager will use
different methods such as Lean construction, agile methodology, PERT or Critical Path
Analysis, Gantt chart and Work Breakdown structure.
Resources
As per the above discussion automated warehouse project requires information
technology and construction process. So, it will require number of resources for completing
this project in effective manner. Along with this resource allocation is also considered as
complex task in project management. But, there are number of methods and tools of
operation management which can be applied by Project manager of Asahi for accomplishing
this project. In which, project manager will use PERT (Project evaluation and Review
Techniques) that helps in optimum allocation of resources. It is also beneficial for reducing
the wastage of resources that leads the reduction of cost. PERT provides assistance in
deciding schedule for each and every activity of the project plan. Along with this, allocation
of human and material resources on different activities is also one of the important tasks of
this method. Therefore using this method project manager can evaluate the use of resources
in every task. Following resources will be required for success of automated warehouse
project of Asahi:
Human resources: People team is considered as most important resource for project.
Automate warehouse project is one of the complex project in terms of technology,
construction and operation. So, it will require different experts with number of skills
at the time of scheduling, costing and managing other resources. So, project manager
needs to higher different human resources for completing various tasks of this project.
For completing all type of tasks project manager will hire system developer and
software engineer. Afterwards there are number of back office tasks and operations
activities which will require special attention so, for monitoring these kinds of
activities project manager will recruit 2 officers of administration. One coordinator
will also be assigned for making coordination between numbers of activities of the
project.
Technical resources: As per the above discussion project manager will focus on latest
technology for successful completion of this automated ware house project of Asahi.
For instance it will adopt different technologies of Data Base Management System
such as MS SQL, Oracle, IBM DB2 and Sybase. Along with this, for developing a
new automated system project manager will require different resources relevant to
hardware and software also. Further, as per the changes in technologies organization
needs to update its technologies in effective manner.
Operational resources: Construction is a long process and it requires different raw
materials such as labour, material and cost, etc. So, all these are considered as major
operational resources for automated warehouse project of Asahi.
Financial resources: it is one of the big financial projects for Asahi because it will
require huge investment in construction and technological resource. Company needs
to adopt latest technologies which increases the total cost of the organization as well.
These resources can be sued by company for satisfying financial needs to automated
warehouse project.
Task breakdown
Work breakdown structure is one of the best tools for planning every task in more
specific manner. Main objective of WBS is reducing complications at the time of developing
automated warehouse. It is also effective for assigning cost to each and every activity in
effective manner. Further it plays important role in tracking the progress of each and every
activity in effective manner. It can manage scope of the projection in appropriate way so,
overall WBS is one of the important methods for managing different activities of this project.
WBS for automated warehouse system project of Asahi is presented as under:
Figure 6: Work Breakdown structure
Figure 7: Layout of warehouse
Team work allocation
Team Members Team work allocation with justification
Project Manager
Project manager is responsible for managing
different activities of project in effective
manner. It plays important role in managing
time, cost and differ human resources of
project. These are the major responsibilities
of project manager because he/she has
appropriate skills of leadership, motivation,
time and finance management and
communication.
Construction manager
Major skills of construction manager is
handing construction related task so, major
responsibilities of thus human resource is
developing plan for construction, monitoring
and reviewing the construction site, etc.
Software engineer
Development of automated warehouse
project is relevant to information technology
and software engineers have skills relevant to
the development of different types of
application, software and systems which are
required for managing this project in
effective manner. So, software engineer is
accountable for managing technical
requirements of this project.
System developer
As per the skills and knowledge of system
developer he/she is responsible towards the
different activities of development of
automated warehouse system for Asahi.
Contractor
Managing coordination between team
members and organization is one of the
major responsibilities of contractor.
Administrator 1 &2
Due to administration skills this resource is
accountable for managing different
operational tasks in effective manner.
Risk Register
Risks Causes Possible course of
actions
Impacts
Employees resistance Employees can resist
due to new changes
and processes. It is
important for project
managers to make
changes so as to
complete the project in
time and budget.
Resistant employees
can become a
constraint in the
success of the project.
Maintaining good
relations with the
employees. Using
different
communication
methods to transmit
information to all the
workers.
Regular meetings and
team activities can be
used to resolve this
issue.
Probability: Medium
Impact: High
Power failure Power failure can
become obstacles
because all the
processes involve
technology and
electricity.
Regular monitoring
and checking
procedures have to be
done.
Backup devices and
invertors can be
installed.
Probability: Low
Impact: Medium
Problems in software Automated warehouse
requires software
which can be
integrated tighter
easily. Software
problems may require
changes in system,
layout, devices and
technology.
Developers and
software engineers
should regularly update
software. There should
be an expert in the
premises every time to
handle such issues.
Probability: High
Impact: High
Problems in
equipments and
devices
Devices and
equipments can fail
even after regular
checks.
There should be extra
backup equipments
which can be used in
case of emergency.
Employees should be
trained so that they can
work on backup
devices in case of any
problem.
Probability: Medium
Impact: High
Difficulties in
reconfiguration
Configuration of
systems is very
important for the
completion of the
project on time.
Possible causes could
be software problems,
incapable devices, lack
of knowledge etc.
There should be a
secondary plan in case
of this problem.
Proper communication
between members and
documentation can
avoid this issue.
Probability: low
Impact: High
Expectations of
stakeholders
New changes and
expectations from
shareholders can cause
problems in existing
processes.
Sponsors and seniors
should maintain good
relation with the
stakeholders.
Planning and design
stage should consider
all the requirements
and needs of all the
members.
Probability: low
Impact: High
Progress and
development of the
project should be
shared with
stakeholders.
Measures of success
Quality: The quality of products will improve significantly. Apart from this, there will be
standardised products. The labelling and packaging will be of excellent quality which will
reduce wastage of resources. Automated systems will automatically remove defective
products from the line.
Reduction in cost: The cost and expenses of the products will reduce. Automated warehouse
will have efficiently operations and the productivity will also increase.
Customer satisfaction: High quality and standardized products will help in increasing the
customer satisfaction level. The value can be easily communicated to the customers.
Improved supply chain and transportation: Supply chain will improve significantly which
will benefit the entire company. The trucks will also get loaded to their full capacity because
the system has already the data of the capacities of different transportation vehicles used in
the company.
7. CONCLUSIONS
The current research project is based on automated warehouse project of Asahi. It has
focus on different challenges which can be faced by organization at the time of development
of this system. Use of a fully integrated technology is one of the major issue because it will
require huge investment and skills and expertise. These kinds of issues affect the timescale of
the project which is not easy to extend. Along with this, as per the research project manager
needs to ensure about the design of warehouse and automated system else inappropriate
design and layout can be a reason of the project failure. Including this, changes in the existing
manual system in automated system can create extra work on human resources of the
company so; resistance of the human resources and contractor is also considered as major
challenge for the company. Report has found that time constraints and communication issues
can also affect the project progress in negative manner.
Stakeholders are the people who are directly and indirectly effect the business
decision thus creating a high and significant impact on success of the business. Asahi
Beverages is operating in food and beverage industry which is vast and dynamic. Stakeholder
base for the business is crucial for in attaining useful business information thus ensuring high
success prospects. The overall analysis reflects that proposing well defined value to the
stakeholders is crucial in order to attain effective business results. It helps the companies in
developing high and significant development measures in the market. Value proposition for
the stakeholders reflected that the company need to firstly analyse and identify the key
stakeholders which will affect the business operations in a significant manner. The
application of power interest model revealed the useful information for the same. The
findings reflect that the company has proposed to offer effective value in terms of financial,
functional and emotional aspect. This will help the stakeholders in motivating themselves
thus attaining business objectives effectiveness. The proposed strategy will also minimise the
resistance to change for the organization thus success of the project becomes an effective and
well defined means of growth within the market. It also ensures the success of the project in
the proposed manner.
Researcher has conducted review of literature for collecting secondary data about the
relevant subject. As per the findings of the collected information, there are number of project
management techniques which can help the organization in managing time and other
operational issue. These methods are Gantt chart, project plan, project evaluation and review
techniques, Work break down structure and lean construction and agile methodology, etc. As
per the project plan Asahi will complete this project in 238 days. It is the critical path of this
project which has reflected the minimum duration for completing project. According to the
current investigation project manager should use the latest technology and project
management techniques for managing all these issues in effective manner.
Findings of the research have concluded that automated warehouse project is
beneficial for Asahi in different terms such as it will help in reducing the extra workload of
the organization. Along with this, it will also play important role in improving operational
efficiency of the company. Further, Accomplishment of this project will increase the scope of
the investigation in this subject also. Number of researchers can conduct the similar kind of
research incoming future on different organization. Along with this, it will improve the
knowledge and skills of PhD scholars also. Therefore, findings of this research will be
beneficial in different aspects.
But on the other hand accomplishment of this research was not an easy task for
researcher because there are number of limitations and problems which could affect the
findings of the current investigation. For instance lack of the time and cost is considered as
major limitation of this subject which can affect the investigation process of the research.
Further, lack of the data on the automated warehouse system was also an issue but project
manager has used the advance search system for finding new and fresh data about the subject.
Including this, project manager has used the different project management techniques for
managing the time and cost of the project so, these methods have also played important role
in resolving this limitation in effective manner. Overall, the current research project has
resolved all limitations in effective manner.
The current research has helped in increasing my learning and skills in terms of
project management. Earlier, I did not have any knowledge about the automated warehouse
and project management, but after completing this research now I am capable enough to
manage a project without any guidance. I have learned different technical and construction
issues which can affect the project success. Along with this, my learning and expertise has
increased in terms of resolving these issues in effective manner. Now I have appropriate
knowledge about the various project management methods such as critical path analysis,
Gantt chart, WBS, PERT and lean construction, agile methodology, etc. Along with this, this
project has improved my skills in terms of MS project and MS word also. Therefore,
accomplishment of this project has improved my knowledge in each and every aspect and
these skills can be used by me for further investigations.
8. PRESENTATION
Attached power point presentation
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