[Technical Innovations]
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2 Technical Feasibility (Can We Build It?) : MODERATE 1. Familiarity with Application: (Moderate) Team: (Low) Technical Innovations has a novice knowledge base regarding National Tint & Trim's business processes. Technical Innovations is unfamiliar with the as-is system used to keep records of customers and related to inventory. Client: (High) Mr. Merritt has a expert knowledge base regarding National Tint & Trim's business processes. Mr. Merritt is familiar with the as-is system as the manager of National Tint & Trim. 2. Familiarity with Technology: (Moderate) Team: (High) Technical Innovations has a broad range of experience pertaining to hardware and software required to plan, analyze, design, and implement the new system. All of Technical Innovations members have been employed in a IT related field. Client: (Moderate) National Tint & Trim management has working knowledge of Quick Books software. Management has a moderate knowledge base regarding Windows OS and Microsoft Office software. 3. Project Size: (Moderate) The to-be system will combine four major functions including inventory management, appointment scheduling, price quoting, and tracking consumer buyer statistics. 4. Compatibility: (Moderate) The current information system consists of a software program along with online and paper based ordering from no more than four vendors. The new system will contain an automated inventory system, online quoting process for auto tinting, as well as an online appointment scheduler.
3 Economical Feasibility (Should we build it?) : HIGH 1. Development Costs Dell 2135cn Multi Function Laser Printer $ Software Licenses $ (3) Dell Precision T3500 $3, Networking Infrastructure $ Online Inventory System $4, Development Labor $80, Total One-time costs $89, Reoccurring Costs Hardware $ Software $ Online Backup $54.95 Web Hosting $ Maintenance $ Operational Labor $7, Total Recurring Labor $8, Total Annual Reoccurring Costs $8, Total Costs $133, Annual Tangible Benefits Increased Sales by 5% (Annually) $107, Reduce Inventory Costs (Annually) $4, Total Annual Benefits $152, Net Present Value $2, Return on Investment 14.30% 7. Intangible Benefits Better supplier relations Increase positive company reputation Increase quality of service
4 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Benefits Increased Sales (minus COGS) $0.00 $19, $20, $21, $22, $23, assumes sales grow at 5% per year Reduced Inventory costs Space Freed $4, $4, $4, $4, $4, Total Reduced Inventory Costs $0.00 $4, $4, $4, $4, $4, Total Benefits $0.00 $28, $29, $30, $31, $32, $152, in today's dollars $0.00 $26, $26, $25, $25, $24, Costs One-time costs Dell 2135cn Multi Function Laser Printer $ Software Licenses $ (3) Dell Precision T3500 $3, Networking Infrastructure $ Online Inventory System $4, Development Labor $80, Total One-time costs $89, Recurring costs Hardware $ $ $ $ $ Software $ $ $ $ $ Online Backup $54.95 $54.95 $54.95 $54.95 $54.95 Web Hosting $ $ $ $ $ Maintenance $ $ $ $ $ Operational Labor $7, $7, $7, $7, $7, Total Costs $89, $8, $8, $8, $8, $8, $133, in today's dollars $89, $8, $7, $7, $7, $6, Net $ (89,563.80) $19, $20, $21, $22, $23, in today's dollars $ (89,563.80) $18, $18, $18, $18, $18, NPV $2, Assumed interest rate 5.60% ROI 14.30%
5 Organizational Feasibility (If We Build It, Will They Come) : HIGH 1. Project Champion Rodriguez Merritt, National Tint and Trim Co-Owner 2. Senior Management Timothy McCalman is the primary co-owner and plans to use the proposed system in future expansion to West Monroe. Involvement from the Owner and Project Sponsor is critical. 3. Users At the moment, the organization has under ten employees. All employees will have access to the system with certain rights depending on user log in. The owners will be in charge of what their employees can do within the system. In addition, customers will be able to access the interactive website to enable efficiency within the company. 4. Stakeholders Along with Rodriguez Merritt, customers will benefit from the implementation of this new system. In today's digital society, most consumers shop and research online before purchasing a product or service. This new system will enable consumers to access National Tint and Trim's inventory and provide more information on scheduling.
6 Summary of Feasibility Analysis 1. Technical: After completion of the technical feasibility we haven graded our to-be system as moderate feasibility. This is due to the equaling out of familiarity of application and technology, project size, and system compatibility between technical innovations and management of National Tint & Trim. 2. Economic: After review, the new system will be economically feasible. There are several benefits that need to be analyzed. First, the system will increase sales by five percent through the initial five years. The percentage is assumed due to the nature of today s consumers. With the system s new online search and buy feature, it will attract the majority of collegiate consumers in the area. Second, the system will save National Tint and Trim $4,500 a year for the first five years. This number is estimated from the amount of inventory that currently covers the store, which is roughly twenty-five percent. After multiplying the percentage covered by the monthly rent of $1,500, there is an estimated savings of $375 per month or $4,500 a year. There are a few costs that are also important to analyze. Some of the one-time cost include: laser printer, software licenses, dell precision computers, networking infrastructure, inventory system, and development labor, which total around $89, The majority of the one-time cost is development labor. Technical Innovations, a group of six, plans to work five days a week for twelve weeks for a total of sixty working days. Like most developers, Technical innovation will work twelve hour days at $18.75 an hour, which will sum $13,334 per group member. On the other hand, recurring costs will total about $8, a year. The recurring costs are extremely affordable compared to the amount of sales minus cost of goods sold. The overall return on investment is 14.30%. From a glance, this is a feasible investment just from the positive return. Thus, for every dollar spent, National Tint and Trim will earn one dollar in fourteen cents. In conclusion, the system is economically feasible. 3. Organizational: The project champion for our project is Rodriguez Merritt and the senior management is Timothy McCalman. Mr. McCalman has future plans to use this system in expansion to the Monroe, LA market. The users of our system will be the employees of Nation Tint and Trim, along with the customers who will use the interactive website. The new system will allow consumers to access National Tint and Trim's inventory, schedule appointments online, and request quotes for an automobile tint job
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