Project Description: The Greenlee Garden Supply Company is planning to install a new computer controlled system called ASRS at its central distribution center in Dallas. This will replace the current manual storage and retrieval of product orders. In the past, Greenlee has been plagued with poor inventory accuracy (83%) and the inability to find product in the warehouse in a timely manner for shipping to customers. Both the physical layout of the warehouse and the stock storage and retrieval information system will be changed. You are the project manager assigned to the information system development and implementation; you report to the CFO, Ms. Louise Randell as well as Mr. Evan Conant, warehouse manager. Your team will consist of both full and part-time staff from IT and several other departments.

Background:An automated storage and retrieval system (ASRS or AS/RS) automatically stores and retrieve items from defined storage locations based on computerized control. When the item and quantity is entered into the system, the software program determines the appropriate storage location (row and shelf location) and directs the automated storage and retrieval machine (SRM) to store the product there. Similarly, when an order is placed, the ASRS system picks up the item and deposits it at a pick-up location where shipping staff will collect the item and process it for shipment.

Figure 1. Automated Storage and Retrieval

Project

This ASRS system will direct the movement of finished packaged product to designated rows and shelves of the Finished Goods Warehouse. When customer service processes a customer order, the order management system will specify the item make and quantity to be retrieved, triggering the ASRS system to retrieve the product and route it to the shipping area. This system will greatly improve inventory accuracy and space utilization of the warehouse, as well as inventory picking efficiency and accuracy when orders are placed. The new system is expected to bring inventory accuracy to at least 95%, order accuracy to 100%, and on-time shipping to 98%.

For this project, the CFO of Greenlee has stressed the ASRS system project priorities illustrated in the Project Priority Matrix below.

LY IVIOLA TIME SCOPE COST Constrain X Enhance X Accept X