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Kudler Fine Foods Frequent Shopper Program

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Kudler Fine Foods was established by Kathy Kudler in 1998 and has since grown into a small franchise in southern California consisting of three locations.

Kathy Kudler works very hard and currently runs all aspects of her business from the ordering of products to the yearly budget and sales forecasting. She works seven days a week and just recently hired the help of store managers and assistant managers to aid her with the work. Currently the managers handle a lot of the day to day work including managing the stores stay within budgets and operating expenses.

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The managers control the schedules; price store items per the corporate guidelines, responsible for managing inventories and handling all cash and sales and even fills in for employees if needed.

Kathy Kudler is still in charge of ordering for all stores because she buys in bulk for all three. Also the buildings that she uses for all three locations are not owned they are actually all leased.

Scope of the project

Kudler Fine Foods has requested the development of a system to track customer purchases through a Frequent Shopper Program that will award loyalty points for redemption. This loyalty program will work dually for Kudler Fine Foods to help them track customer purchases for increased productivity in ordering and inventory management.

Currently all three locations will be included in the project so that a customer can shop at any location and their purchases tracked as well as allow management to track the purchases from each individual location.

There will need to be new hardware installed at each location with software updates and training for all employees to ease the transition.

Currently the stores marketing and personnel departments will not be affected.

Project Constraints

Currently there appear to be no project constraints that are foreseen. Financially Kudler is able to handle the transition with profit margins doing quite well. There was no time frame given for the project but the estimation is going to be approximately six months. The resources are available (hardware availability, WAN software, utility functions such as high speed cable and/or DSL). Based on an overview of Kudler Fine Foods corporate policies and the culture of those that are employed by the company the employees are eager to help in the transition to the new system.

Statement of Scope and Goals

Kudler Fine Foods is currently a successful business but they seem to be losing focus on the important things such as customer satisfaction and prioritize their tasks to maximize their objectives for the fiscal year. This being the case the manager has inquired about the possible development of a system to track customer purchases through a frequent shopper program to award loyalty points for redemption. This will track purchases of individuals to refine the ordering process of inventory items. The expectation of a successful frequent shoppers program will assist with customer satisfaction scores as well as assisting in the inventory management of the Kudler Fine Foods chain. The main assumption is that customers are not interested in money (discounts) but in fact they want quality. The frequent shopper program plan will allow Kudler to more accurately order to satisfy those needs. Only unforeseen limitations at this time may be customers’ cooperation for trails of the new system.

Supporting Measures for Success

Kudler Fines Foods has served customers and is one of the leading domestic food businesses in the San Diego area. In an effort to improve customer satisfaction and broaden the scope of Kudler’s clientele the Frequent Shopper Program has been developed to track purchases. Therefore, it is important to redefine the current systems function and discuss implementing new or upgraded systems software. Thus, this is an effort to increase the success rate of the measures employed to increase customer satisfaction. First, various personnel have been interviewed to establish a basic knowledge of individual system processes. Some different methods being used are interviews, which are very helpful, observation, questionnaires, and the use of the Joint Applications Designs (JAD). Moreover, we believe that this approach to systems development is a must in the early stages to give direction to gathering of system information. JAD includes interviews of Kudler stakeholders and detailed notes with some charting of the information. Another important key measure to successfully accessing the success of Kudler’s outreach to their customers is the use of activity diagrams. Diagrams will also be used in charting vendor information and plotting the status as system development unfolds including the Entity-Relationship Diagram, which is very good for charting customer orders. Overall, there are multiple ways to measure the success of Kudler’s system development all of which when communicated will increase current system.

Summary of Project Feasibility

Operational feasibility will include normal operating costs that are incurred each year for the new system. Such as the connectivity needed to the current network and the added bandwidth needed for the added traffic should be included. Equipment maintenance support agreements and regular replacement schedule will also be a factor. This agreement will also include any addition software upgrade or license renewal incurred as well as any programming support needed. This will also include any Kudler technical support employee that will do any system maintenance. Operational cost will also include the routine supplies such as the frequent customer card along with ongoing training current and new employees to the Kudler chain. Figure 1 shows the operational feasibility summary.

Summary of Annual Operating Cost

Recurring expenses Amount

Connectivity $25,000

Equipment Maintenance $35,000

Programming $5,000

Supplies $5,000

Total recurring cost $70,000

Figure 1

Technical feasibility shows that this project will impact the current Access database used to keep record or customer information. With this new system, an integration of this database should be migrated to a more streamlined database such as Oracle. This new database system in also incorporate an all-in-one application in which the current Access tables will be migrated to. A team will need to be formed to implement the new database system. This will include a new server, database software, and front end user interface. In addition new point of sale registers will need to be purchased along with a card reader which will be used for multiple purposes; these include credit/debit card purchases and customer frequent shopping cards for the rewards program. Figure 2 is a summary of the technological feasibility cost:

Summary of Technological Cost

Expenses Amount

Equipment $50,000

Software $30,000

Figure 2

Economic feasibility which includes the cost/benefit analysis answers the following questions: Is the value of the purposed project greater than the cost incurred? Does Kudler have the resources to fund the project through to completion? An estimate as to the cost of the development and operational cost needs to be completed. In addition, what are the anticipated benefits of the new system? Lastly, what is the cost/benefit ratio? The estimates shown in Figures 3 and Figure 4 this project shows to be economically feasible. The project expectations show a return on investment in less than two years.

Summary of Benefits

Benefit/Cost Savings Amount

Increased efficiency in inventory management $70,000

Increased earnings based on customer satisfaction $100,000

Increased efficiency in records management $150,000

Other Savings (supplies, stocking, etc.) $120,000

Total annual benefits $440,000

Figure 3

Summary of Development Cost

Expense Category Amount

Salaries/Wages $150,000

Equipment/Installation $100,000

Training $20,000

Utilities $30,000

Licenses $15,000

Support Staff $20,000

Travel, miscellaneous $120,000

Sub-Total $455,000

Contingency (10%) $45,500

TOTAL: $500,500

Figure 4

Determination of Requirements

In an effort for Kudler Fine Foods to increase customer satisfaction and relations, a frequent shoppers program is being developed. To ensure the success of this program our analyst team will be employing several system development processes throughout systems analysis. In order to make our determination of what type of system best qualifies to increase productivity, analysts will interview specific stakeholders and develop questionnaires that will need to be reviewed by the managing supervisor. Also, the manager will be involved with setting up the interview appointments and an events calendar will be posted to keep everyone involved updated on the progress. Kudler’s outreach for customer’s ease of shopping will be well documented during the interviews and during system observations. Another type of system development that will be used is the joint application development (JAD). It is this type of extensive development that will enable Kudler to expeditiously make decisions based on prior information gathered during analysis. Finally, the analysis team will create prototypes of the new system. According to The Modern Systems Analyst, “Prototypes can prove that the technology will be what it is suppose to do.” In addition, the prototypes will help analysts better understand the user’s needs and help users get a glimpse of the new technologies capabilities.

Proposed System Requirement List

In an effort to gain and build more of an intimate relationship with their customers, Kudler Foods is in the process of developing a tracking system to analysis their customers’ spending habits then providing their customers with a high value incentives loyalty points program. Unconventional to the low end markets that provide discounts to the quantity purchases of their customers, Kudler’s customers, instead, focuses on the quality and finding specialized items. In return, Kudler Foods have partnered up with a loyalty reward program to reward their customers with high end gifts, airline first-class upgrades, or other specialty foods. In doing so, Kudler Foods want to build a database system that interacts with their rewards program. Figure 5 shows the list of confirmed requirements. Figure 6 shows the proposed system process view. The new system must meet these requirements:

Stores valuable demographic customer information.

Easily modify customer information.

Track customer spending habits.

Improve customer satisfaction

From spending habits information, the system must assign a value to every product purchased and assign points.

Refine processes and offerings.

Communicate with vendors of loyal rewards programs in choosing gifts, airline upgrades, and specialty foods.

Communicate with all three stores by passing demographic customer information to a centralized server.

Easily run and view quarterly reports and provide detailed analysis of tracked data and information.

User friendly with simple GUI user interface system.

Provide web-based application that customers can easily track their points and view available rewards.

Backup system to store customer information in case of an uncontrollable risk.

Assign customers with unique numbering system that is put on a keychain card for easy swipe at register.

List of Confirmed Requirements

Requirement Mandatory Optional

Improve ordering functionality

Ease of shopping for customers

Improve customer satisfaction

Be completed and implemented within 6 months

Reduce inventory

Improve supplier relations

Assist in customer analysis for future products and services

Constant communication between all locations

Ability to transmit data between management and inventory control as well as suppliers

Easily recognizable shoppers card

New All-In-One application

Friendly GUI for employees

Figure 5

Proposed System Process View

Figure 6

Functional Allocation Modeling

The hardware required for the proposed project includes a new server and client workstations including the sales registers with attached card readers. This hardware will receive, transmit, information. In addition to this the server and workstation hardware is the network communication layer hardware including routers at each location which will allow for the transmitting and receiving of information between store locations on a private network. This hardware will communicate to the database and sales software. Also there are new card readers for each point of sale workstation. The card readers will transmit credit/debit card information to the point of sale software on the workstations. In addition to credit/debit information, the card reader will also transmit the data from each issued frequent customer purchase card.

The software required for the proposed project includes the installation of Microsoft Windows 2003 server, Oracle database, Windows XP, and Point of Sale software. The Windows 2003 server will be the main software gateway between all workstation requests to the Oracle database software. This will also include security rights for server, database, and point of sale access from all workstations. The Oracle database will house the information such as customer details which include sales and award points. In addition to the customer information, inventory levels will also be kept with the database software. The information on inventory levels will adjust real-time which each sale transaction. Also included in this database will be current retail cost, wholesale cost, and vendor information. The point of sale register workstations will be using Windows XP software for the operating system with the point of sale software. The point of sale software hosts the HCI interfaces as well as the transmitting the sale data to the database server. The data from the card readers will be received by the point of sale workstations which is then passed to the database server.

Human-Computer Interface, this is the graphical user interface for the cashiers or end users accessing the client workstations. The user interface will act as the input device for adding, updating or deleting any information located in the central server database. The point of sale software is the acting HCI. The cashier will use the interface to complete all transaction. In addition to completing transaction, the cashier will also be able to access the database through the HCI. Information such as price checks, customer information, and inventory levels can all be achieved using the HCI. The HCI will also be used to setup customer information as well as updating this information and enrollments to the frequent purchasing program. Reference Figure 7 shows the functional model of the hardware involved for the frequent shopper program.

Function Model

Figure 7

Logical Model of the System

Figure 8

Preliminary Design Model

Figure 9

Design Trade-off Approach

With the estimated budget of $500,500 for the new project of Kudler foods Customer Loyalty Program the new hardware and software recommendations were outlined above.

To reiterate;

The software required for the proposed project includes the installation of Microsoft Windows 2003 server, Oracle database, Windows XP, and Point of Sale software.

The database server recommendations for this project is a two 2.66Ghz Dual-Core Intel Xeon 5150 processor, 8GB of RAM, and 5 300GB hard drives.

For workstations a minimum hardware requirement consist of an Intel 2.33 GHz processor, 2GB of RAM, and 60GB hard drive is needed for the application needs.

The hardware for the point of sale registers will be purchased as a package. This package will include the workstation and card reader.

New server and client workstation including the sales registers with attached card readers. This hardware will receive, transmit, information.

Routers at each location which will allow for the transmitting and receiving of information between store locations on a private network.

New card readers for each point of sale workstation.

For design purposes there is are no possible substitutions available as far as hardware and software performance. The requirements provided by Kudler will allow nothing less than the above stated software and hardware changes. If there is more money allocated for this product the hardware can be upgraded to better performing devices as the software is sufficient for their needs.

Detailed Design Process and Design Specifications

The design process considers the flow of the process. The design process for Kudler’s frequent shopper program takes the needed requirements to make the process fluid and efficient. The recommendations for the software design, hardware and networks are based on the manufacture’s recommendations. There are various software needs for the frequent shopper program. First a new server installed with Windows Server 2003 will be used for the operating system on the database software. The database software will be provided by Oracle. There is the point of sale software which will reside on all workstations including new workstations for the registers. For all workstations and registers with the point of sale software Windows XP will be the designated operating system. Each of the software listed will be purchased as a package turnkey design with the exception of the Oracle database. The Oracle database will require company specific information and setup. The point of sale software will host the human-computer interface. The HCI will be customized for Kudler to meet the specific needs such as inventory items. The HCI will also be both keyboard and touch screen on all point of sale registers. The end user personal workstations will be keyboard input only.

The hardware for this project will include a new server, new point of sale workstations, and the possible new workstations for end users that current hardware does not met software requirements. In addition to the server and workstations, new card readers will be purchased that met the recommendations of the point of sale software package. The database server recommendations for this project is a two 2.66Ghz Dual-Core Intel Xeon 5150 processor, 8GB of RAM, and 5 300GB hard drives. For workstations a minimum hardware requirement consist of an Intel 2.33 GHz processor, 2GB of RAM, and 60GB hard drive is needed for the application needs. The hardware for the point of sale registers will be purchased as a package. This package will include the workstation and card reader.

The current network will need to connect all locations on a single wide area network (WAN). This will mean that the current network will need to be upgraded at all locations with a specific vendor installing a T1 connection. The T1 connection will allow all locations to access the central database server. The hardware will include a Cisco router at each location with the addition of a firewall appliance to ensure all information and transactions are secure. Credit/Debit card transactions will not change from the current installation. The transaction will be made from each register using a designated telephone line.

Physical Model of the System

Figure 10

Testing Process Summary

The testing process is one of the most critical areas of the development of any project. Testing and verification of the new frequent purchase program and all units within should be completed with the following expectations. The testing should begin at the early possible stages of the project to reduce the amount of time of debugging once the system is live. The first part of this plan includes a trial run of the system on a test bench basis. This phase includes the setting up the necessary equipment and software for test trials. The server and database should be in place at this point as well as one single workstation, and one register. The workstation and register must undergo the necessary functions as if they were a live system.

All issues must be documented and rectified during this phase. The speed of the system needs to meet the specified desired expectations. A minimum wait time for any software request such as submitting customer information, completion of a transaction, and running reports should take no longer then 10 seconds of internal processing time for completion. Should the process take longer than the desired 10 seconds, an investigation should commence to find a solution. Each function of the system should be tested and finding of the test should be documented. Once the test bench testing is completed additional test should be completed. After each new register and upgraded workstation is installed a test of all the functions should be completed using the HCI. Findings and documentation should also be completed after every installed hardware component.

Installation Process and Training Plan Summary

Once the installation and upgrades of the current hardware and software begins it will occur in stages, one location at a time with the assistance of the two Computer Support Specialists employed by Kudler. These employees know most about the current process and system as they are now and will be working first hand with the team on implementation.

There will be training courses at each store with scheduled time per management for all employees to attend these 1 hour long training courses with three designated “Super Users” by Kudler that will be able to assist in the training and ongoing support to the stores. The “Super Users” are most familiar with the current system, quick learners who are knowledgeable of the current system and able to pick up the new system just as fast. The “Super Users” will have more extensive training at one location for more in depth training. This will include three additional hour long training hands on sessions.

Documentation Plan Summary

“The documentation of information system is a component of communication, control and monitoring of the development, operation and maintenance project (Opera and Mesnita, n.d.).” Proper and accurate documentation provides valuable information on how the system is to operate and to be maintained. Documentation also allows the system to be modified accordingly to operational needs. Reimplementation of Kudler’s project is important for expansion and similar projects. Our team will provide two set of documentation: system documentation and user documentation. The documentation will be stored as an on-line documentation on Kudler’s Intranet viewable by all employees needing support.

System documentation will diagram the system functions, architecture, and construction details to the support team. This allows for the system to be maintained and re-implemented in the future. Accurate description of our new system will allow future designers to recreate and also improve by means of integration of other systems. Proper documentation adds value to our system and also extends the shelf life of Kudler’s new Information System.

The importance of user documentation is to provide support of end users of the system. The user documentation will describe routine operational procedures, “including functions such as data entry, output generation, and periodic maintenance (Satzinger, Jackson, Burd, & Johnson, 2004).” In the user documentation, employees will be educated on:

Starting up and shutting down the POS system correctly

Program functions of the new POS system and Customer Loyalty program.

Keystroke and command sequences to scan items, pull a total, scan loyalty cards, take payment, and finalize the transaction

If the POS system starts to act up, correction steps must be made.

Accurate user documentation will educate employees correctly on the new system. There should be very minimal lag time learning the new system. This will ensure that Kudler will have an efficient system that rewards their customers for shopping at Kudler.

Support and Maintenance Plan Summary

Support and maintenance are very important for proper functioning of the new system. Thus Kudler Fine Foods has developed a group of individuals who are qualified to answer customer and employee questions which includes Systems Support, Technical Support and Maintenance. The system support team will answer general questions and assist in ensuring that systems are functioning by evaluating the systems from remote locations. The system support team can monitor real-time system malfunctions from multiple locations and can pin-point system problems. They can also assist individuals in correcting problems. The systems support individuals help identify system shortages, software malfunctions and can get you to technical support if they are unable to resolve the issue. Technical support can assist with any and all networking and server problems. Technical support is usually able to go more in depth in finding system problems. However, if the problem can’t be fixed through technical support then maintenance can be schedule to come out and resolve the issues. Moreover, the systems support team, technical support, and maintenance are all thoroughly trained to “correct faults, improve performance, and adapt the product to a changed environment”.

Cite this Kudler Fine Foods Frequent Shopper Program

Kudler Fine Foods Frequent Shopper Program. (2017, Dec 11). Retrieved from https://graduateway.com/kudler-fine-foods-frequent-shopper-program-2/

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