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7b36853f-97a8-4c5d-9885-35232134a005.doc
Project Closure Report
Project Name: Pınar Su Design Of Decision Support Systems With RFID
Application
Department: Logistic And Inventory Management
Focus Area: RFID System Design
Process: 12 Weeks
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Prepared By
Document Owner(s) Project/Organization Role
Hasan YONUK Group Leader
Gökçe ATAK Group Member
Aykut KOCAALĠOĞULLARI Group Member
Mehmet Efe ESGĠN Group Member
ġerife TIRMAN Group Member
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TABLE OF CONTENTS
1. PROJECT CLOSURE REPORT PURPOSE…………………………………………………………...4
2. PROJECT CLOSURE REPORT GOALS……………………………………………………………....4
3. PROJECT CLOSURE REPOT SUMMARY………………………………………………………….…4
3.1 Project Background Overview………………………………………………………….…………4
3.2 Project Highlights and Best Practices…………………………………………………………..5
3.3 Project Closure Synopsis…………………………………………………………………………..5
4 PROJECT METRICS PERFORMANCE……..……………………………………………………….…6
4.1 Goals and Objectives Performance………………..………………………………………….....6
4.2 Success Criteria Performance………………………………………………………………….....6
4.3 Schedule Performance…………………………………………………………………………......8
4.4 Budget Performance……………………………………………………………………………......8
5 PROJECT CLOSURE TASKS………………..………………………………………………………….9
5.1 Resource Management………………………………………………………………………….....9
5.2 Issue Management………………………………………………………………………………...10
5.3 Risk Management………………………………………………………………………………….10
5.4 Quality Management……………………………………………………………………………....11
5.5 Communication Management…………………………………………………………………...11
5.6 Customer Expectation Management…………………………………………………………...11
5.7 Asset Management………………………………………………………………………………..12
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5.8 Lessons Learned…………………………………………………………………………………..12
5.9 Postproject Tasks……………………………………………………………………………………12
5.10 Project Closure Recommendations……………………………………………………………..13
6 PROJECT CLOSURE REPOT APPROVALS………………………………………………………....13
7 APPENDICIES………………………………….………………………………………………………....14
7.1 Tables and charts…………………….……………………………………………………………..14
7.2 Evaluation of group performance by members………………………………………………..17
7.3 Carboy and bottle types used by Pınar Su……….……………………………………………..21
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1 PROJECT CLOSURE REPORT PURPOSE
Project Closure Report Purpose
Our team’s purpose with this report is show what the team have done for the
first semester and future aspects for the second semester. Also with this report
measurment of project success, team members perfomance and close the
project for the first semester.
2 PROJECT CLOSURE REPORT GOALS
Project Closure Report Goals
Is that a need or not RFID design system for Pınar Su .
Expectations From this project.
The goals and objectives of our team.
What our team had done .
Measurment of the current performance of the project.
Identify the problems during the project.
Tasks and requirements to close the project.
After accepting this project system will be applied for the following
days .
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3 PROJECT CLOSURE REPORT SUMMARY
3.1 Project Background Overview
Project Background Overview
RFID project main goal is search and suggest an feasible RFID system for
Pınar Su. With RFID Pınar wants to solve their problems which occur from
employed current system(barcode system with SAP);
to contol the tracing of carboys and pallets
to count how many times a carboy is used
to reduce the cost from employee mistakes
To achieve main goal our team are researching best alternatives for Pınar.
Research RFID applications in other case studies. Research RFID
Technologies about which is suitable for Pınar. We contact with RFID
development companies and developers such as Tolga Erkmen about RFID
applications and samples about RFID.
Our success criteria is search and construct best alternative RFID systems for
end of this semester. .
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3.2 Project Highlights and Best Practices
Project Highlights and Best Practices
First of all project highlights is solving the problems with RFID systems for we
identify the problems ;
They can determine carboy’s life cycle up to 40 times. If Pınar Su uses
one carboy less than 40, it’s benefit will decrease. But, if they use more
than 40, it can cause carcinogenic elements.
The company could not be control and provide minimum wrong range
of warehouse tracking. Pınar Su uses SAP programme to enter the
stocks.and uses bar code system in their warehouses and bar code
system must use manual card reader so employee may receive wrong
information for good at the warehouse so wrong information wrong
forecast wrong inventory level and no effective company product
process. These situation does not good references for the company
because they may have risk for competitive market . %25 of carboys
sent to dealer are loosing because of not to control perfectly .
We analyze the previous RFID system and find the deficit pieces and
gather enough information to build a new suitable RFID chips.
All these problems causes of applying RFID. The main goal of an RFID system
is to carry data on a transponder (tag) that can be retrieved with a transceiver
through a wireless connection .RFID technology is very effective and more
high information capacity for all production companies but a little high cost for
design process but after that RFID materials work effectively some steps cost
will decrease in a company these are the most probably decrease cost in the
inventory. On the other hand RFID chips save and give more information and
minimum risk for the wrong information at the inventory.
3.3 Project Closure Synopsis
Project Closure Synopsis
RFID project is finished by project members for this semester. We identfy the
problems with our meetings and necessary of RFID with Pınar Su and make a
visit to factory to mention about structure and skills of factories and
warehouses. We define rfid and make rfid research systems and technologies
that will useful for project. Actually team make %50 of project. For the second
semester we want to apply an sample RFID to Pınar Su.
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4 PROJECT METRICS PERFORMANCE
4.1 Goals and Objectives Performance
Goals and Objectives Performance
As strating goals and objectives are;
Our project objective was to minimize the warehouse tracking cost ,
decrease the filling time of pallets. Pınar Su will control warehouse
activity more effective than bar code system.
Pınar Su is able to determine how many times the butts are filled again.
Pınar Su is able to increase recycling ratio with using the RFID chips on
the butts
Also RFID system may helpfull for distribution planning for example
which butts are loaded and where the goods are acknowledged from
Pınar Su.
Pınar Su may be collect information from customer's houses with active
RFID chips and according to our team and Pınar Su's Logistic directory
the company may design advance RFID system not with standing the
customer will not call the Pınar Su center for wanted the full but with
active RFID chips.
For the end of this semester our project satisfies first three goals but for
forth goal is unreal because of tag prices etc. So we have high rate for
perfomance of goals and objectives.
4.2 Success Criteria Performance
Success Criteria Performance
Our success criteria is applying a sample RFID application for PınarSu
at the end of the project. For first semester we make identification and research
perfomance and make a closure report for project. Team make successful
research and every team member became RFID expert. Actually because of not
having real datas we don’t measure our performance exactly. But in second
semester we will make sample RFID systems more real projects .
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4.3 Milestone and Deliverables Performance
Milestones and Deliverables Performance
Actually we delivered all deliverables with a huge sucess and at time. Pınar
wants to see how ,which and cost of RFID systems used for distribution. From
this approach we make a successful research and we guess we will apply a
sample RFID for Pınar SU in next semester.
Achievement of project is anticipated to later days because from now on we
just make on paper-works but as mentioned before we will be succesful for
aplying a sample. Researchs will help us to achieve
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4.4 Schedule Performance
Schedule Performance
Project Schedule Overview:
Information collection and analyzing, measurement of current process,
Research system design and applied in an effective way
Project Schedule Control Process:
Traceability right information and right time appiled
Project Schedule Corrective Actions:
We tried to create some usable methods in order to be helpful to RFID process
Project Schedule Integration with Managing Project:
Our team members strongly focus on this project process and our team
members will achieve this project successfully
4.5 Budget Performance
Budget Performance
Rfid investment have diffrent cost structures that depend with your budget, with
your capacity, with your business processes, your need and expectations from
rfid. But the main cost structures are hardware, middleware, software, rfid tags,
business processes, services, traning and education.
COST ANALYSIS FOR PINAR SU
COSTS
HARDWARE 15000$
Antenas(4 antenas)
Readers(4 sensors)
MIDDLEWARE&SOFTWARE 7000$
TAGS
singleuse,passive tags(X) 0.1$/#
recycle,passive tags(Y) 2$/#
BUSINESS PROCESSES 10000$
SERVICES 3000$
TRANING AND EDUCATION 5000$
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TOTAL COST 15000$+7000$+0.1$X+2$Y+10000$+3000$+5000$
4.6 Metrics Performance Recommendations
Metrics Performance Recommendations
RFID hardware includes devices such as antennas, hand-held RFID readers,
fixed RFID readers, mobile RFID readers, RFID portals, and RFID printers.
RFID middleware facilitates the flow of data from where it is captured (the
reader) to where it will be stored and analyzed (the database and related
software). As you might infer from the assortment of readers alone, the type of
hardware that you choose will depend not only on your budget, but also your
business processes. You also need to consider the costs of the middleware and
software that will communicate with the hardware. Rarely the interface and
software can be used out-of-the-box; they will likely require customization to
your particular application, and you may need to hire programmers to
accomplish this if you lack in-house expertise.
The hardware, software, and middleware are all compatible and that you have
thoroughly investigated the impact that this new equipment will have on your
existing IT infrastructure. In addition, choosing the appropriate hardware often
depends on the physical environment where the RFID system will be installed.
In terms of cost, RFID equipment is usually a one-time investment. Recurring
costs associated with the equipment may be incurred, though. These include
licensing, upgrades, and maintenance costs.
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5 PROJECT CLOSURE TASKS
5.1 Resource Management
Resource Management
Our resources were the information of RFID usage models,interviews with the
managers of the company (Murat Ildız especially) and some experts(Tolga
ERkmen) who are servicing RFID solutions,we attended the RFID symposium in
ITU which was managed by Alp Üstandağ and we also got the help of Internet.
We analysed and observed the implementations of RfID ın the
companys and tried to find out some feedbacks.
We had several meetings with our company’s managers in order to get
some brief information about the current processes of the business and
observe the minuses,pluses.
We attended the RFID symposium in order to see the current views to
the RFID systems.
We met and had conversation about our project with Tolga Erkmen who
is an expert in this subject.
5.2 Issue Management
Issue Management
Our final point is that we have several solution packages to implement
an efficient RFID system to our company.This technology is offering us
several types of implementation but we have to investigate all of
them,after all we have to select the most suitable,cost and time effective
implementation for our company.We have several options such as:aAre
we going to stick every single carboy an active or passive RFID tags or
are we going to stick the tags only pallets…etc..We hope that we are
going to reach the optimum point at the end of second term.
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5.3 Risk Management
Risk Management
Project Risks Mitigated:
Our project’s aim is to offer our company the most suitable,cost and time
effective RFID implementation.Surely there must going to be some investments
for it and this means always risk in the business language.But we certainly
believe that our project will amortize itself in a very little time and provide the
company efficiency in the business processes..
Outstanding Project Risks:
We do not believe that our project carries significant risks for future.Surely,the
technology will be developing and perhaps better solutions will be found in the
following years but considering the current conditions,current market,current
rivals,current technology this investment is not going to be rubbish that’s for sure.We
believe that a RFID System Design is going to live long years which suits the company
and is working in a time and cost effective,efficient manner.
5.4 Quality Management
Quality Management
Quality management, radio frequency identification (RFID) and Pınar
Su carboy’s product process are increasing attracting the attention of
corporate managers. RFID provides data inputs into the company's
quality improvement systems, while carboy’s production line supports
realtime data communications between remote RFID devices and
enterprise applications. RFID readers can simultaneously scan and
identify hundreds of tagged items. This detailed data give companies
unprecedented visibility and insights into processes. Supplementing the
"measure" step of the RFID project, RFID enables companies to identify
issues early in their lifecycle. This paper also presents studies on using
RFID to improve processes. The case describes how property
management companies leverage a property management system to
improve operations efficiencies. The case describes how to minimize
the occurrence of dispensing the wrong bar-code applied.
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5.5 Communication Management
Communication Management
Our team separate communication management into three groups. Firstly, our group
make a regular meeting every week and make a brain storming what our team can
make about the RFID application for Pınar Su. Our group leader arrange these
meeting and contact among group members.
Second meeting was between our group and Pınar Su’s managers. Our group’s
communication with Pınar Su’s manager is good. Our team present new ideas about
RFID design and to take advice for managers. During the meetings, we had learned
about Pınar Su’s current system, Pınar Su’s process analysis. But, we face problems
to take some data.
Third meeting was between our group and academic advisor. Our group are directed
by our advisor.
5.6 Customer Expectation Management
Customer Expectation Management
We should follow stocks to minimize the problems on the barcode system and
to decrease number of manuel operations. While carboys are entering the line
and existing the line, we should count properly and effectively to put on ramp.
To reach RFID systems’ aim, we may get 95% efficiency. So, we can count
products and materials without any mistakes.
Pınar Su water containers could not be tracked how many times they fill which
has a necessary inspection from Turkey. They can determine carboy’s life cycle
up to 40 times. By prefering RFID, Pınar Su will create awareness. Also, By
using sacks onto carboy, they increase their demand management. Customers’
health is important for Pınar Su.
5.7 Asset Management
Asset Management
Effective working inventory and RFID application. RFID reader antenna and chips
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5.8 Lessons Learned
Lessons Learned
Our team learned how to manage a project. We learned preparing presentations
to executive managers. Our team read books about RFID as a lecture. Our team
investigate about conceptional design and then learned how to apply the cost to
RFID
5.9 Postproject Tasks
Postproject Tasks
We consider this term for our project as a learning,researching and beginning of
the planning level.Second term we are aiming
More concrete information,materialized processes
Shaped structure of our design
5.10 Project Closure Recommendations
Project Closure Recommendations
Our recommendation as a team,to reach a feasible,optimum point in our project
at the end of the year.We are all thankful to our advisors and the people who
shares his/her ideas with us.We hope we may obtain a more efficient,helpful
working with our company.
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6 PROJECT CLOSURE REPORT APPROVALS
Prepared By
Document Owner(s) Project/Organization Role
Hasan YONUK Group Leader
Gökçe ATAK Group Member
Mehmet Efe ESGIN Group Member
Aykut KOCAALIOĞULLARI Group Member
ġerife TIRMAN Group Member
Approved By __________________________________
__________________________________
__________________________________
Approval Date __________________________________
7 APPENDICES
7.1 Tables and charts
*RESULT ANALYSIS* Planned / Expected Results
1- Our team would planed to visit DYO which uses RIFD system at YaĢar Holding
2- Team members met to Pınar Su Company at Nazilli.
3- Our team planned collecting more information from Murat Ildız but not effective collect data
4- Research other alternatives for decreasing designing cost
5- Learning to share information
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*EFFORT ESTIMATE ANALYSIS*
Task Estimated Actual Delta % Delta Comment
First warehouse visit 2 1 -1 It was usefull to
decide the place of
reader
Literature review 10 8 -2 It was usefull to
learn about RFID
components
Technology 1 1 - It was usefull about
learnimg
programmes which
are used for
barcode and RFID
Data collection 13 9 4 It was usefull to
investigate the
price and
conditions in
Turkey.
*SCHEDULE ANALYSIS*
Milestone Baseline Actual Delta % Delta Comment
First Meeting with Pınar 5 3 -2 Our team couldn’t meet
Su with IT department
Writing Project 2 2 - - Our team make
Proposal and Going to presentation to Pınar Su
Company about our aims.
Data collection 5 2 -3 - Our team saw all the
supply chain process
and which stages we
should focus on.
Following the process 1 1 - - Our team saw filling
in Filling Center processes, packaging
and loading operations
Going to filling center 1 1 - - We investigate SAP
and saw technological program and barcode
infrastructure system
Our team meeting 10 5 -5 %50 We talked about how
RFID can be developed.
Investigate the price of 7 5 -2 We compare the prices
RFID components and quality carboys.
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*PROBLEM / ISSUE ANALYSIS*
Problem / Issue When Occurred Root Cause Resolution
Our team decided to put the 12.12.2008 It is threating the health Our team decided to put the chips
chips into the carboy of customers. under the carboy.
Pınar Su should have given 19.12.2008 High cost Stop the supply chain process
hand-terminal to all dealers after filling center/warehouse.
*OPEN ISSUES*
1-Trying to apply RFID system in all supply chain.
2- Researching technological concepts of RFID
3- Combining design of RFID and its components; deciding the cheapest price.
*LESSONS LEARNED*
1- Our team learned how RFID can be apply in a warehouse
2- Learned the differences between barcode and RFID, and realized how RFID is usefull.
*SUGGESTED IMPROVEMENTS*
1- Pınar Su should increase the efficiency of carboys.
2- RFID system should be applied for traceability and visibility.
*FINAL THOUGHTS*
We realize the causes of problem about the old RFID project of Pınar Su.
RFID is a good system for traceability and inventory management. But because of its
high cost, water sector don’t prefer to use RFID
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7.2 Evaluation of group performance by members
Member Name: Hasan Yonuk
Criteria Totally Disagree Neutral Agree Totally Agree
Disagree
The team shared a +
sense of common
purpose
Different opinions +
was expressed in
democratic manner
Interaction among +
the members was
comfortable
Self-evaluation
According to me this project more effective working than the other ones but our team
coordination some problems but it is a not good news.And believe that we are more suitable for brain
stroming and all of the group members is same.
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Member Name:Aykut Kocaalioğulları
Self-evaluation
I believe that, although we had some coordination problems because of the conflicting programs and
the occupied time limits, we did a good job.I think this kind of group projects are useful for our future
works but also hard to achieve the beginning purposes because everybody is an independent person
and have a private life so it is being hard to meet with full complement.I saw that these kind of projects
are working only if there is a well organized team,and a good task distribution so that all the members
of the group may work independently according to their own tasks and at the end, they join the parts of
the puzzle so the puzzle is done.
Criteria Totally Disagree Neutral Agree Totally Agree
Disagree
The team shared a +
sense of common
purpose
Different opinions +
was expressed in
democratic manner
Interaction among +
the members was
comfortable
Member Name: Gökçe Atak
Criteria Totally Disagree Neutral Agree Totally Agree
Disagree
The team shared a +
sense of common
purpose
Different opinions +
was expressed in
democratic manner
Interaction among +
the members was
comfortable
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Self-evaluation
I made coordination among the group members for meetings and needed works. I went RFID
symposium at ITU. I met most of the RFID firms and got better ideas. I collected information about
RFID. I prepared the meetings’ contents. I participate all the meetings.
Member Name: Şerife TIRMAN
Criteria Totally Disagree Neutral Agree Totally Agree
Disagree
The team shared a +
sense of common
purpose
Different opinions +
was expressed in
democratic manner
Interaction among +
the members was
comfortable
Self-evaluation
I believed that, I achieved my responsibilities perfectly. I collected data, research and decided how to
use the information. I participate all the meetings. I meet with Tolga Erkmen and got information about
the price of RFID and its process design.
On the other hand giving some information
COST/BENEFIT ANALYSIS
Rfid investment have diffrent cost structures that depend with your budget, with your capacity, with
your business processes, your need and expectations from rfid. But the main cost structures are
hardware, middleware, software, rfid tags, business processes, services, traning and education.
1-)RFID HARDWARE, MIDDLEWARE, SOFTWARE
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RFID hardware includes devices such as antennas, hand-held RFID readers, fixed RFID readers,
mobile RFID readers, RFID portals, and RFID printers. RFID middleware facilitates the flow of data
from where it is captured (the reader) to where it will be stored and analyzed (the database and related
software). As you might infer from the assortment of readers alone, the type of hardware that you
choose will depend not only on your budget, but also your business processes. You also need to
consider the costs of the middleware and software that will communicate with the hardware. Rarely
the interface and software can be used out-of-the-box; they will likely require customization to your
particular application, and you may need to hire programmers to accomplish this if you lack in-house
expertise.
The hardware, software, and middleware are all compatible and that you have thoroughly investigated
the impact that this new equipment will have on your existing IT infrastructure. In addition, choosing
the appropriate hardware often depends on the physical environment where the RFID system will be
installed.
In terms of cost, RFID equipment is usually a one-time investment. Recurring costs associated with
the equipment may be incurred, though. These include licensing, upgrades, and maintenance costs.
2-)RFID TAGS
The cost of RFID tags varies greatly depending on the type of tag and the volume purchased. Passive
RFID tags, which draw power from the reader in order to transmit data, are much less expensive than
active RFID tags, which have an on-board power supply. As with most items that you may purchase in
bulk, you can usually negotiate volume pricing for your RFID tags. To realize a cost of about five cents
per tag, however, you may be required to purchase several million tags.
Another factor to consider when evaluating the cost of RFID tags, or chips, is whether or not you plan
to recycle them, which in turn depends on the application. On the surface, recycling RFID tags may
appear to be a money-saving activity, but that is not always the case. Additional time, and thus
personnel, may be required to process the tags, and the personnel will need to be trained in order to
prevent damage to the tags from improper handling.
3-) BUSINESS PROCESSES
The implementation of an RFID system will have some impact on your business processes.
While improving efficiency is a strong motivator for many companies to adopt this promising
technology, it's important to note that RFID may be initially disruptive to business processes. It takes
time to put the system into place, work out the bugs, and then adapt your existing business processes
to accommodate the RFID application. Many procedures that you have previously optimized may need
to be re-optimized once the RFID system is in place. This process may require an investment in time
and additional personnel.
4-) SERVICES
You have probably realized that implementing an RFID solution is not a do-it-yourself project
and that you may need to the help of experienced professionals. RFID experts can make sure that
your RFID readers, antennas, and controllers are connected and set up properly. This process may
involve modifying your network architecture and building appropriate portals and structures to which
the readers will be mounted. Once all of that is in place, the next step is to fine-tune the hardware
setup to optimize its performance. Finally, thorough testing of this small-scale system should be done
before the application is deployed on a production scale.
5-)TRAINING AND EDUCATION
During your cost-benefit analysis, don't overlook the training/education variable. While RFID
consultants can ensure that your application is properly constructed and deployed, it's a good idea to
build a team of in-house experts who will have the responsibility of maintaining the system and training
new and existing employees on how to use it. If and when you decide to use RFID in your business,
you may want to pre-select a few such people, who can then participate in the installation and testing
phases.
COST ANALYSIS FOR PINAR SU
COSTS
HARDWARE 15000$
Antenas(4 antenas)
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Readers(4 sensors)
MIDDLEWARE&SOFTWARE 7000$
TAGS
singleuse,passive tags(X) 0.1$/#
recycle,passive tags(Y) 2$/#
BUSINESS PROCESSES 10000$
SERVICES 3000$
TRANING AND EDUCATION 5000$
TOTAL COST 15000$+7000$+0.1$X+2$Y+10000$+3000$+5000$
• Actually these hardware systems build on warehouse entrance/exit and also if you want on
conveyors its cost is nearly 2500$ for the same tags.
• For carboys tags are nearly 2$ which are non-influenced liquid and durable to heat and
chemicals
• For pallets offer 2$ tags that are strengthen and recycling
• As mentioned before equipments(hardware, middleware), business processes and traning and
educations are usually a one-time investment
• Tags and services continuous investments
• These prices are provided by Tolga…
For benefit analysis we don’t have exact information about cost of using barcode system so we can’t
make exact analysis for benefits but usually the benefits of RFID systems are same such as;
• Improved inventory visibility and monitoring
• Reduction in inventory safety stock
• Reduced lost
• Better decision-making
• Reduced labor cost
We have 6 process blocks in our model.
a) transfer_to_line
b) washing_filling
c) Labelling
d) transfer_to_truck
e) covering
f) vendors
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There are different variables for different process blocks. Such as; action, allocation and time
value.
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