System Request Version Goodwin Road Ruston, LA
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1 System Request Version 2 Project Name: Project Sponsor: Name: Title: Organization: Contact Information: Project GetFIT Kim Allen Owner ADD-Life 1507 Goodwin Road Ruston, LA afitnetwe@aol.com Core Business: ADD-Life is a locally owned and operated fitness center. In comparison to other locally owned franchises, ADD-Life provides a more personal experience for their clients. At ADD-Life, employees try to provide members with a wide-range of fitness and wellness choices, including a cardiovascular area, basketball courts, a pool, and a nursery. Licensed trainers are also available to help clients reach their optimal fitness potential. Existing Systems: All existing CRM systems at ADD-Life are paper-based with minimal automation in place. Clients do not present identification before entering the workout areas, they simply sign-in on a sheet of paper upon arrival. The current payroll system consists of a simple time sheet on which employees write down hours worked. The manager must add accumulated time sheets at the end of each pay period, making this an inefficient and time-consuming task.
2 Business Need: The first business need is to increase efficiency and reduce employee error when recording hours worked. Employees are sometimes be unable to recall the exact time they came in to work or left on a given work day. This process can be automated to assist employees and managers with tracking time worked. Next, ADD-Life needs to ensure client membership payments, thus increasing profits. Non-members could potentially use the equipment within ADD-Life without paying for membership, and current clients could forget to update their dues. Identification cards will authenticate and update information on memberships. Furthermore, ADD-Life would like to improve client satisfaction due to a lack of community among clients. Clients will have an added functionality as a part of their membership dues. An online forum will be available for clients to interact with trainers, nutritionists, and other clients. Functionality: Time management: Employee time management will consist of an electronic clocking system. A workstation will be setup for this task where employees will login using a given employee identification number. The owner or manager should be the only personnel granted access to reports; only the owner can make modifications. Membership authentication: ID cards will be issued to all current and new members. All member information will be stored in a database, including renewal dates, membership identification numbers, contact information, and picture. An employee will be available at the front desk to scan cards and authenticate membership. Community forum: A new feature included in membership fees will be the ability to access to an online forum. This support system will improve client morale. Expected Value: Tangible: Time saved by automated clocking system o 15 employees, paid every 2 weeks o 104 hours per year spent calculating and writing checks * $35,000= $ *Due to lack of financial information, Bulldog Solution Group estimated Kim Allen s yearly salary as $35,000. Decrease in percentage of unpaid membership dues o Decrease error rates- 10% error rate 600 clients x 10% = 60 Assuming those due will be paid: 60 clients x $50 membership due = $3,000 $3,000 x 12 months = $36,000 *Due to lack of financial information, Bulldog Solution Group has used the following estimates: 600 clients, $75 one-time registration fee, $50 monthly membership fee.
3 Intangible Benefits: Improves client satisfaction Clients will better understand the benefits of membership at ADD-Life in comparison of other fitness centers in the area. Improves management satisfaction Ability to track membership trends by clients Intangible Costs: Dissatisfaction of clients Clients will now have to scan ID cards before allowed access to gym. Dissatisfaction of workers A worker will have to sit at the desk and scan membership ID cards. *A new worker will not need to be hired to scan membership cards. The employee currently working at ADD-Life s front desk will assume this responsibility, along with their present duties (without pay increase). Special issues or constraints: System must be completed through the implementation phase by November 10, System must be reliable. System must be easy to use to prevent a lengthy training process. Technical Feasibility: Can we build it? (Moderate) Familiarity with Business Processes: (Moderate) o Team: (Moderate) All team members have been clients of a fitness center and therefore have a basic understanding of fitness center systems. One team member has experience working at a fitness center. Three team members have experienced the inefficiency of paper based payroll. o Client: (High) Kim Allen has owned ADD-Life fitness center for 11 years. Employees are usually high school or college students and have moderate fitness center knowledge. Due to lengthy duration of employment, management is extremely knowledgeable of all the business processes required to maintain a fitness center. Familiarity with Technology: (Moderate) o Team: (High) Three team members currently have technical jobs.
4 One team member has had previous experience in a technical job. All team members have the high level of technical understanding that will be needed to implement the system due to CIS curriculum. Hardware: The proposed systems will utilize the existing web server (offsite), 2 new workstations, and a new server (client database). All team members have an adequate knowledge of the hardware to be implemented in the proposed system. A common access card (CAC) reader will be installed on the workstation at the front desk. Software: All team members have successfully completed prerequisite CIS courses at Louisiana Tech University including: o Database management o Problem solving o Entry and advanced Visual Basic All team members have varying backgrounds in programming languages. o Client: (Low) Management has no troubleshooting skills. Management and employees have no experience with database management and programming. Project Size: (Small) o The proposed system will utilize one web server, one server, and two workstations. o The project team will consist of six team members. Organizational Feasibility: If we build it, will they come? (High) Project champion: o Kim Allen, owner of ADD-Life Senior Management: o Kim Allen is our sole contact in senior management at ADD-Life She is fully supportive of the proposed system, but she is currently unwilling to allow team access to financial information. Users: o Employees, managers, and clients will be the primary users of the system.
5 o Implementation of the new system will require little to no training due to the low complexity of the proposed system. o The system will build a sense of community that ADD-Life strives to attain and increase overall satisfaction amongst the clients. Other Stakeholders: o Since ADD-Life is a small, private company, the stakeholders are limited to employees and clients. Economic Feasibility: Should we build it? (High) (See Cost-Benefit Analysis for Development and Recurring Costs) Tangible Benefits: Increased sales: 10% client increase with a 1% loss Lost revenue recovery: Estimated 10% of clients are using gym without valid membership Payroll reduction: 15 employees Estimated 52 hours per year are fudged by employees 52 hours a year at 7.25 = $377 Time spent calculating payroll 104 hours a year ($336.54) Intangible Benefits: Improves client satisfaction Clients will better understand the benefits of membership at ADD-Life in comparison of other fitness centers in the area. Improves management satisfaction Ability to track membership trends by clients Intangible Costs: Dissatisfaction of clients Clients will now have to scan ID cards before allowed access to gym. Dissatisfaction of workers A worker will have to sit at the desk and scan membership ID cards. *A new worker will not need to be hired to scan membership cards. The employee currently working at ADD-Life s front desk will assume this responsibility, along with their present duties (without pay increase).
6 Cost Benefit Analysis: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Benefits Increase Sales* $0.00 $16, $16, $17, $18, $18, Regained Loss of Revenue** $0.00 $36, $36, $36, $36, $36, Reduced Payroll costs*** $0.00 -$ $ $ $ $ Total Benefits $0.00 $51, $52, $52, $53, $54, in today's dollars $0.00 $48, $46, $44, $42, $40, Costs One-time costs Servers $6, Workstations and Hardware $1, Software Licenses $5, Server Software $1, Development Labor $40, Total One-time costs $54, Recurring costs Hardware $0.00 $0.00 $0.00 $0.00 $0.00 Software**** $1, $1, $1, $1, $1, Operational Labor $27, $27, $27, $27, $27, Total Recurring Costs $0.00 $28, $28, $28, $28, $28, Total Costs $54, $28, $28, $28, $28, $28, in today's dollars $54, $26, $25, $23, $22, $21, Net -$54, $23, $23, $24, $25, $26, in today's dollars -$54, $21, $21, $20, $20, $19, NPV $48, Assumed interest rate 0.06 *Increased Sales- Assumes 5% increase in customers per year with a 1% loss. 24 clients * $75 one-time registration fee = $1, clients * $50 membership fee * 12 months = $14,400. $1,800 + $14,400 = $16,200. **Loss revenue recovery- Estimated 10% * 600 clients = 60 clients. 60 clients * $50 membership fee * 12 months = $36,000. ***Payroll reduction- 52 hours * $7.25 = $ hours bi-weekly per year =104 hours spent on calculating employee payroll. $35,000 salary / 104 hours= $ ****Software- Estimated for licensing, software version updates, maintenance.
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