(1)INTRODUCTION

The first Giant Hypermarket Store (Giant) was founded in 1944 as a small
grocery store in Kuala Lumpur. It acts as one of the largest retailers in Malaysia which
provide everyday low price, great value and big variety. Besides, Giant also created a
comfortable shopping environment to the customers.

In 2009, Giant pioneered the concept of modern supermarket shopping which

encouraged customers to buy their household stuff and also fresh food under one roof
and in a hygienic environment. Due to the reason that pace of change is rapid, thus
Giant use the innovative marketing strategies to capture customers attention. Giant
put in much effort in product pricing and also store design.

In the year of 2007 and 2008, Giant has been ranked as the Malaysia's 11th and
12th Most Valuable Brand. At the same time, Giant was awarded as the Best in Asia
Pacific Retailers' Award and also Top Retailer in Malaysia. Due to their effective
marketing strategies and effort in managing the store, Giant also won the Excellence
Service Quality Award in the 7th Asia Pacific International Entrepreneur Excellence
Award.

Primary objective of Giant is to serve customer better. Thus, to reach this

objective, Giant decides to implements a self-service checkout system. This system
was introduced in the late 1990s which loved by retailers for the efficiency. Self-
service checkout system can increase the efficiency and speed of checkout. By this,
Giant can have more free staff to serve customers on the shop floor which will indirectly
increase the customers satisfaction.

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 (2)SWOT Analysis
Positive Factor
Strength
Giant hypermarket is one of the
largest hypermarket chain chains in
Malaysia. It was operating more than half
century in Malaysia which was founded
by Teng Family in 1944. Therefore, Giant
have ability to capture the market share
Internal Factor
and little by little drive our competitor out
of market.
Besides, Giant having their own
house brand. We have contract with at
least 216 Small and Medium size of
entrepreneurships to develop our own
product. Food production is the most we
produce in our own name. It is a good way
of marketing our brand name to our
customers and create customer loyalty.
Opportunities
Population size of Malaysia have
increasing in every year. That means
Giant have more potential customers
because everyone needs to buy
household products. This creates an
External Factor
opportunity to Giant so that we can
increase our customers. Giant may can
explore into new location in Malaysia
.
Giant can increase the variety and
type of own house brand to compete with
our competitors. This can help us to
satisfy customer needs and increase
customer loyalty.
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Negative Factor
Weakness
The main weakness of Giant is high
turnover rate with our employee, which is
occurs in the operation department seriously.
Many of their employee are dont have
motivation to work in Giant and they were
resigning the work in Giant after only working
one or two months. Therefore, Giant have to
waste their time and money to employ new
employees.
Another weakness of Giant is their large
size of business. It will lead to inefficiency in
bureaucracy. That mean their decision making
will take longer time to decide. Its decision
making also need to centralize in their head
quarters
Threat
There is stiff and strong competition
among the industry which Giant are located.
There are other major hypermarket chains
within the industry such as Aeon, Tesco and
others. They are competing alongside with
Giant in the retailer industry.
Another threat faced by Giant is online
shopping. Nowadays, we live in the
technological era, people are becoming more
relied on computer to do their daily task. For
example, they pay bills, transfer money online.
Therefore, online shopping can be a threat to
Giant due to we do not provide any online
shopping.
(2) FACT FINDING STRATEGY

We have used some fact-finding techniques to find out the importance of

installing the self-service checkout system in Giant. First fact-finding technique is the
observation. Observation technique is used to observe the effectiveness and efficiency
of the business and its current system. This is a highly successful technique, as the
analyst themselves can visits the company and experiencing the working of the
existing system themselves. Throughout the observation process, we found that
customers always have to queue for a long time due to the shortage of employees and
also the insufficient of payment counter. This will give them a very bad shopping
experience in Giant especially for those families with new born baby as they have to
take care the child and also queue simultaneously. We found that the problem is even
more serious during the promotional period and also peak period. Some of the
customers would even dispel their buying intention and leave the hypermarket store.

Questionnaire is also one of useful fact-finding technique to collect information

from a large number of people by asking standard questions. After they filled up the
questionnaire, they will give back the answer sheet to the system analyst to tabulate
and analyse it. This technique has the advantage of cost saving and also time saving.
This is due to the reason that the same set of questionnaire can be answer by a large
number of people in the same time. After collecting back all the questionnaires, we
found that most of the customer dissatisfy with the payment process. They are
unhappy to have a long queue during peak period and also recommend that Giant
should improve the current system to retain the customers.

Another fact finding technique that we use is research. Research can include
the Internet, IT magazines, and books to obtain background information, technical
material, and news about industry trends and developments. It is the process of
researching the problems which had solved by other sources such as human or
documents previously. To solve the problem, we made references to other
organization that had prior experienced with same problems. Besides, we also found
the information from database, reference books, case studies and Internet. Using this
technique can save our time for seeking a solution to solve the problem if it already
solved. We can know the effect of using self-services checkout system and how
different attitude of consumers previously solved the similar problems. We can know
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the depth and details information about self-services checkout system.Throughout the
research, we can found that many hypermarket store also facing the similar problem.
They are using self-service checkout service successfully satisfy the customer needs
and create a new value to customer. Hence they attract more customer to buy their
products.

(3) BUSINESS CASE

3.1 Analysis of current business case

Poor customer service

Giant experiences a high turnover rate of employee especially in their operation

department. Many employee resign after they for 2 to 3 months in the supermarket.
This make Giant supermarket need to find and employ new employee frequently
(Analysis of Giant Hypermarket in Malaysia, March 2015). With the high rate of new
employee, Giant is said hard to maintain their quality of service to the customers. This
is due on the new employee are not given enough training before they involve in the
daily operation. Thus, they did not familiar with the operations of the company and
unable give a quality services to the customer.

Long-queue in cashier line

Long-queue lines generally occurred during peak season, for example during
Chinese New Year. Long-queue lines have been often associated with reduction of
satisfaction and service evaluations, and would bring negative perception of service
quality. (Kokkinou & Cranage, 2013). During the festive seasons, number of customers
increased significantly and most of them came for same time to grab promotion
products. However, management face problem to arrange enough manpower in
cashier lines. Thus, they need to queue for a long time when they wanted to make
payment. Customers were argued that management did not care about the
convenience of customers. Complaints were lodged to management but management
hard to solve problem due to lack of manpower.

Human error

Human error always occurs when customers made payment at the checkout kiosk.
Various complaints against human error reported to the management. However,
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human errors were unable avoided. Sometimes, customers feel cheated by
supermarket when human errors occurred. Customers feel unsatisfied and unhappy
thus effect the reputation of the supermarket. Reputation will affect supermarkets
sales in the long term.

3.2 Justification for the proposed system

3.2.1 Advantages of the proposed system

Reduction of waiting time.

According to Bickers (2009), it is possible for self-service checkout to reduce the

waiting time for customer as it able to have more lanes open at the same time,
mainly due the smaller size compare to traditional lane, in some cases, four to six
self-checkout lanes take the same spaces with 3 cashier attended lane. (NCR,
2015). The reduction of waiting times for customer could be a huge competitive
advantage for Giant. According to the customer survey conducted by NCR (2014),
one of the main reason of consumer using self-checkout system is the convenience
of it and it is generally agreed faster than cashiers assisted line (Figure 2),
moreover, Consumers generally do not expect to spend their time on waiting lane
but prefer to look for quick and efficient service. (Weijter et al, 2007). Therefore, the
implementation of proposed system is expected to be reduce the waiting line and
create value for consumer.

Fully Utilized Employees

As previously mentioned, waiting line commonly occurred during peak season. In

general, retailer could solve this issue by increasing the number of staff in order to fit
with the peak demand. However, this could lead to another issue which is these
employees would be in idle situation during slow time when fewer customers are in
the lanes, and ultimately lead to unsustainable cost structure. (Kokkinou & Cranage,
2013) Therefore, by utilizing a self-checkout system, it is also consider as gaining a
cut back on cashier as a single employee can be monitoring several check-out
kiosks in the same time. (Nick Mann, n.d.) Furthermore, by making available those
employees who previously working as a cashiers before implementation of system.

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Giant can improve their customer service by assigning these employees to other
sectors of the store, including assist customer and stock refill, all of these areas are
believed to be able to improve the customer experience in the store. (Charles E.
Cox, 1992). In nut shell, by replacing traditional lanes employee by self-checkout
system kiosk, Giant not only able to avoid additional employees cost but also fully
utilize them and improve overall customer satisfaction.

Improve Customers Experience

The improve of customer service is one of the two main factors of increasing use
of self-checkout in retail stores, according to Vice President for NCR Tracy
Flynn(2005). Other than impress customer by shortening waiting lines and more
assistant on other field of stores as previously mentioned, it is also said that self-
service checkout is able to directly improve customer experience on shopping. When
a customer able to control a larger portion of buying process, it is very likely that the
customer will have a good experience (Bicker, 2009). On a psychological level, it
might have more to do with the unique element of control that self-service affords.
(Matt Dixon & Lara Ponomareff, 2010)

3.2.2 Disadvantages of proposed systems

Increase in Cost

Like previously mentioned, although being able to have cut back on unnecessary
employees, it doesnt mean the systems will be sufficiently reducing cost, in fact, the
overall cost might be getting higher. Firstly, develop such a new and high complex
system to replace current system could be sky-high and affecting the profit of
organization (Software Development Cost, 2009). Even that trying to outsource or
purchase the system externally wouldnt come with cheaper price, for example,
according to Frost Sullivan (2012), a complete set of self-checkout system could be
cost up to $165,000. Even though the expenses are a one-time investment, it still
considered as a heavy burden for a retail stores in Malaysia. Not to mention those
subsequent cost such as maintenance fee and training cost. Self-service checkout
system is highly appreciating in U.S retail market due to high minimum wages,
machines replacing people is considered as cheaper in long run. (Mark Rogowsky,

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2012) however in Malaysia, the significantly lower minimum wages compare to U.S.
made the systems not so cost-effective.

Risk of Shoplifting

According to Katsundo Hitomi (1996), machine is less flexible than human labor,
relatively, machines are easier to abused by human. Shoplifting is always an issue
for majority of self-checkout system as employees are unable to effectively monitor
the customer transaction. (Nick Mann ,n.d). It was stated that shoplifting behavior
whether intentional or not is five times higher with self-checkout than when cashiers
are working. (USA Today, 2012). A survey conducted in U.S shows that around 20%
of surveyees admitted they shoplifting, and the top reason of commit such fraud is
because they couldnt get the item to scan successfully (Figure 3). Such issue could
be solved but will require additional cost for equipment with anti-shoplifting
technology, which increase the burden for company operating.

Complexity of Using self-checkout system.

Generally, Self-checkout system is more popular among younger generation and

the popularity started to decreases with older generation. (Statistic Brain, 2015) This
is mainly due to the difficulties of using such technology. Younger generation or tech
savvy might easily to figure out how to process the system meanwhile it can be very
troublesome for others because of several problems such as bar codes cant be
scan properly or product require age verification. (Ali Raza, 2015). The result would
as have mentioned above, causing shoplifting, and also would cause delaying the
checkout process and make the waiting line become longer. Ultimately decrease
customers experience.

3.3 CURRENT INTERNAL AND EXTERNAL FACTORS

External Factors: Customer

Doubtless, Customers are absolutely important to any kind business. Generally,

Information systems that able to interact with customer received high priority (Shelly,
2003).. Therefore, Self-checkout system which is directly involve with customer
should be implement. Other than that, Beside, we believe that implanting the self-
checkout lane mean provide more choices for Giant customers, especially that the

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increasing of tech savvy customer, due to technology is getting common in this
technological era

External Factors: Competitors

Until 2012, there are 296 Hypermarket outlets in Malaysia, and the industry still
continuously move ahead through high intense competition market. (Hasliza &
Muhammad, 2012). Giant should understand that in order to compete in such shrink
and high competitive market place, they should not only focus on their product and
price, but also on the transactional choices they offer. (Raymond D.Jones, 2012). In
fact, one of the giants main competitor Tesco Malaysia, had already launched their
first self-checkout lanes in their store at IOI city mall in Putrajaya (Inside Retail Asia,
2015).

Internal Factor: Overcome current system weakness.

Based on our observation result, one of the weakness of Giant is the long waiting
lines, and complain about the poor customer service in the checkout line. Moreover,
according to a research analysis from UKEssays (2015), Giant is currently
experience a high turnover rate with their employees, this could be an issue for Giant
as additional cost such as training cost could be occurred. Thus, the new self-
checkout system is possible to overcome the following current weaknesses of Giant
Hypermarket.

3.4 Software Acquisition Alternatives

There are various manufacturers and suppliers that provide self-checkout

offerings for hypermarket such as NCR which accounted for up to 70% of global
market, represents the worlds largest vendor of self-service kiosk. This is followed by
Wincor Nixdorf, Fujitsu and Toshiba which is in the fourth position (kioskmarketplace,
2013). Based on the analysis of the system requirements, we will select two software
acquisition methods to be tested in cost-benefit analysis- (A) Purchasing a software
package and (B) Outsourcing. On the side note, in-house development will be
excluded due to various factors such as lack of advanced knowledge in software
system as well as high research and development expenses.

(A)Purchasing a software package

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 It involves obtaining a software system from companies that manufacture
software for sale. In this case, Giant can purchase the complete hardware and
software system from self-checkout kiosk vendors such as NCR and Fujitsu. Giant can
purchase it with a lump sum / fixed amount of cost initially without incurring additional
costs or resources in shipping, assembling or system checking. According to
Rosenblatt, this alternative used up less time as the product already has been
programmed and tested (2014).

There is less investment risk from the company as well due to the functionality
of the self-service system already proven reliable and up-to-par performance from
other users. Improved efficiency can also be proven by rise in productivity due to better
access to real-time information and reduction in data entry (Encore Business Solutions,
2010). In addition, there will be less employee training as information technology has
been stepping up to replace manpower.

(B)Outsourcing

What is outsourcing? It is a practice of having a non-core activities done outside

a firm for a fixed amount fee either monthly or yearly (businessdictionary, n.d.). It is
another means for Giant to pursue as it is a common norm to get outsourcing service
in this particular self-checkout system industry. For instance, the industry leader- NCR
is widely recognized as one of the top outsourcing service providers and this is proven
by the fact that the company has been ranked top consistently in International
Association of Outsourcing Profession (NCR, 2013). Giant can consider this approach
based on the main reason that it is attractive in term of its reliability and quality.

Peter Dorsman stated that NCR is trusted for its innovative solutions and
managing capability in delivering top-notch customer service experience (2013). In
addition, giving IT professional to handle the system, Giant can focus on what they do
best instead of investing in research & development, thus reduce unnecessary costs
in the long run. Hassle free is guaranteed due to the fact that newer version software
and malware protection will be updated automatically and regularly by the service
provider (Willie Pena, n.d.).

Aside from this, an internal IT employee might not be able to respond and solve
problem in time, in contrary, with the expertise of outsourcing service providers, they

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can help to minimize risk by being watchful of unforeseen circumstances and
responsible for verifying patches and processes (Janine Rafalko, 2014). As long as
the problems such as confidentiality, trust issue and quality of outsourcing firm are
resolved, the company can continue business by consistently receiving technical
supports and services in particular system maintenance or even security service.

3.5 COST-BENEFIT ANALYSIS

Next, we will set up a benchmark test and move on to cost benefit analysis.

In order to proceed with this phase, a Giant outlet in Kuala Lumpur will be
selected to carry out cost-benefit analysis in 5 years period.

Cost-benefit analysis Software acquisition alternatives

Benefit (1): reduce labour costs both

5persons x RM80/day x 6/week x
52weeks = RM124,800/year

Benefit (2): eliminate human errors both

average RM500/month x 12months =
RM6,000/year

Benefit (3): eliminate hiring cost both

RM5,000/year

Benefit (4): improved security and outsourcing

eliminate monitoring cost
RM30,000/year

Cost (1): purchase hardware in year 0 both

RM250,000 Purchase

Rm200,000 Outsource (discounted

price)

Cost (2): purchase software platform in purchase

year0
RM100,000

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Cost (3): hire consultant to install, purchase
configure and test the system in year 0
RM5,000

Cost (4): maintenance, backup and purchase

update
RM20,000/year

Cost (5): hire IT employee purchase

2persons x RM80/day x 5/week x
52weeks = RM41,600/year

Cost (6): monthly software package outsourcing

(including update & Maintenance)
RM8,000/month x 12months =
RM96,000/year

Purchasing software
package year 0 year 1 year 2 year 3 year 4 year 5
Benefits

reduce labour costs - 124,800 124,800 124,800 124,800 124,800

eliminate human errors - 6,000 6,000 6,000 6,000 6,000

eliminate hiring costs - 5,000 5,000 5,000 5,000 5,000

total - 135,800 135,800 135,800 135,800 135,800 679,000

factor 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209

PV benefits - 123,455 112,231 102,029 92,753 84,321

assuming discount rate of
10% NPV= 514,789

costs

purchase hardware 250,000

purchase software
platform 100,000

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hire consultant to install,
configure and test the
system 5,000
maintenance, backup and
update - 20,000 20,000 20,000 20,000 20,000

hire IT employee - 41,600 41,600 41,600 41,600 41,600

total 355,000 61,600 61,600 61,600 61,600 61,600 663,000

factor 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209

PV benefits 355,000 56,000 50,909 46,281 42,074 38,249

assuming discount rate of
10% NPV= 588,512

Return on investment= total benefits - total costs / total

costs = 0.024

Outsourcing year 0 year 1 year 2 year 3 year 4 year 5

Benefits

reduce labour costs - 124,800 124,800 124,800 124,800 124,800

eliminate human errors - 6,000 6,000 6,000 6,000 6,000

eliminate hiring costs - 5,000 5,000 5,000 5,000 5,000

improved security and
eliminate supervision costs - 30,000 30,000 30,000 30,000 30,000

total - 165,800 165,800 165,800 165,800 165,800 829,000

factor 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209

PV benefits - 150,727 137,025 124,568 113,244 102,949

assuming discount rate of
10% NPV= 628,512

costs

purchase hardware 200,000

monthly software package - 96,000 96,000 96,000 96,000 96,000

total 200,000 96,000 96,000 96,000 96,000 96,000 680,000

factor 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209

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 PV benefits 200,000 87,273 79,339 72,126 65,569 59,608
assuming discount rate of
10% NPV= 563,916

Return on investment= total benefits - total costs / total

costs = 0.219
Net Present Value (NPV) analysis.

The NPV of purchasing software package is negative. However, the NPV of

outsourcing is positive Net present value (NPV) is used to determine the profitability
of the project or investment (Investopedia, 2015). Since NPV of purchasing software
package is negative, the plan will incurred losses and should be rejected. However,
outsourcing will gain profit to the company and should be accepted.

Return on investment (ROI)

The return on investment of purchasing software package and outsourcing is 0.024

and 0.219 respectively. Return on investment measures the amount of return on an
investment relative to the investments cost. (Investopedia, 2016). Since the ROI of
sourcing is higher, thus company should adopt outsourcing as a plan.

payback analysis
Purchasing software package
cumulative
year costs costs benefits cumulative benefits
year 0 355000 355000 0 0
year 1 61600 416600 135800 135800
year 2 61600 478200 135800 271600
year 3 61600 539800 135800 407400
year 4 61600 601400 135800 543200
year 5 61600 663000 135800 679000

Outsourcing
cumulative
year cost cost benefit cumulative benefit

year 0 200000 200000 - 0

year 1 96000 296000 165,800 165800

year 2 96000 392000 165800 331600
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 year 3 96000 488000 165800 497400
year 4 96000 584000 165800 663200
year 5 96000 680000 165800 829000

Purchasing software package

800000
700000 679000
663000
600000 601400
539800 543200
500000 478200
RM

400000 416600 407400

355000
300000 271600
200000
135800
100000
0 0
0 1 2 3 4 5
YEAR

cumulative costs cumulative benefits

Outsourcing
1000000

800000 829000
663200 680000
600000 584000
RM

497400
488000
400000 392000
296000 331600
200000 200000 165800
0 0
0 1 2 3 4 5
YEAR

cumulative cost cumulative benefit

Payback period

From the line graph, outsourcing had a shorter payback period than purchasing
software package. Payback period is a tool to determine the time consumed to get
back the cost of investment (Investopedia, 2015).The shorter the payback period, the
lower the risk that company faces in future. Thus, company should choose outsourcing
as plan.

(4) DOCUMENTATION
4.1 Description of the current system:

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 Firstly, customer will pass the items to be purchased to the system. Following
step will be conducted by cashier. Cashier will initially identify the product then scan
the product barcode in order to request product information such as product type and
product price. This will generate a record of order under the system.
The following step is to request for the product status. The self-service kiosk
system is linked to inventory system to obtain information about the product status. A
verified product details is delivered back to the record of order. Next, items to be
purchased are confirmed by cashier by verifying the item checklist and passing
invoice to customer.
Upon confirmation, cashier will perform billing by receiving either cards or
cash from customer. In the meantime, bank will verify and authorize the transaction.
This will eventually generate a receipt or small change (notes / cash) that will be
issued to the customer. After the transaction, goods sold data will be updated in the
inventory database in the closely related inventory system.
4.1.1 Context diagram of the current system

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4.1.2 Level-0 data flow diagram (DFD) of the proposed system

4.2 Description of the proposed system:

Firstly, customer will identify the item by passing the items to be purchased to
the system. It is followed by scanning the product barcode in order to request
product information such as product type and product price. This will generate a
record of order under the system.
The following step is to request for the product status. The self-service kiosk
system is linked to inventory system to obtain information about the product status. A
verified product details is delivered back to the record of order. Next, customer will
confirm items to purchase by verifying the item checklist and they will get invoice
back in return.
Upon confirmation, customer will perform the only billing method via credit
card payment to the system. In the meantime, bank will verify and authorize the
transaction. This will eventually generate a receipt that will be issued to the
customer. After the transaction, goods sold data will be updated in the inventory
database in the closely related inventory system.

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4.2.1 Context diagram of the proposed system

4.2.2 Level-0 data flow diagram (DFD) of the proposed system

17
4.3 Input e-form

DESCRIPTION
PRICE
D DESCR

Figure 1
KEY IN
BARCODE

TOTAL
0.00 CANCEL ITEM

FINISH I
AND

PAY

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 4.4 Output form

Receipt No: 00123

Self-check-out counter: Date and

Time:

DESCRIPTION REMARK QUANTITY @ UNIT PRICE PRICE

S/Z

TOTAL 0.00

GST(5)
PAID 0.00
PROJECT SCHEDULE

S=SUBJECT TO GST @6%

Z=ZERO OR NON-SUBJECT TO GST

ALL PRICES ARE INCLUDED GST

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(5) Project Schedule

Activity Description Predecessors Duration

(days)
A Problem identification and preliminary investigation - 4
B Research A 7
C Observation A 7
D Carrying out questionnaires survey A 7
E Collecting and Analysing Data B,C,D 10
F Evaluating information system requirements and E 3
system acquisition alternatives
G Performing cost-benefit analysis E 5
H Preparing recommendation and gaining approval from F,G 5
BOD
I Forming a team for pre-system implementation H 7
J Further discussion on critical issues I 2
K Installation and testing of system J 4
L Employees training J 7
M Conducting trial periods K,L 14
N Collecting feedbacks M 7
O Further customizing the new system N 10
P Launching the system O 1
Firstly, we have to identify problems of Giants legacy point of sale system as
well as conduct preliminary investigation in particular feasibility study. (4 days)
If the project is feasible to proceed, fact finding techniques such as research as
well as observation and questionnaires survey will be conducted at major
outlets. (7 days)
The next step is to collect and analyze data on problems faced by stakeholders
and enhancement needed. (10 days)
Next, evaluating information system requirements and system acquisition
alternatives (3 days) will be carried out along with cost-benefit analysis. (5 days)
Cost-benefit analysis is followed by preparing recommendation and gaining
approval from Board of Directors in finalizing system acquisition decision. (5
days)
After Approval and decision, Giant will have to recruit related field experts, post
announcement to shareholder, and form a team for pre-system implementation.
(7 days)
The team formed and related field experts along with system vendor will have
further discussion on issues such as technical problem, quotation and
implementation date. (2 days)
A few selected Giant stores are needed to be closed for installation and testing
of hardware and software system. (4 days)
At the same time, employees in related branch will have to attend training and
briefing for the new checkout system. (7 days)
Upon training, trial period for 14 days will be carried out. (14 days)
Meanwhile, feedback by the users will be collected. (7 days)
Then, the new system will be customized for further improvement. (10 days)
Finally, new checkout system will be officially launched. (1 days)
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 A B E F H
Start: 16/3/19 ID: 1 Start: 16/3/24 ID: 2 Start: 16/4/4 ID: 5 Start: 16/4/18 ID: 6 Start: 16/4/28 ID: 8
Finish: 16/3/23 Dur: 4 days Finish: 16/4/1 Dur: 7 days Finish: 16/4/15 Dur: 10 days Finish: 16/4/20 Dur: 3 days Finish: 16/5/4 Dur: 5 days
Res: Res: Res: Res: Res:
G
Start: 16/4/21 ID: 7
Finish: 16/4/27 Dur: 5 days

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Res:
C
Start: 16/3/24 ID: 3
Finish: 16/4/1 Dur: 7 days
Res:
D
Start: 16/3/24 ID: 4
Finish: 16/4/1 Dur: 7 days
Res:
5.1 PERT CHART -
1

I J K M N O
Start: 16/5/5 ID: 10 Start: 16/5/16 ID: 11 Start: 16/5/18 ID: 12 Start: 16/5/27 ID: 14 Start: 16/6/16 ID: 15 Start: 16/6/27
Finish: 16/5/13 Dur: 7 days Finish: 16/5/17 Dur: 2 days Finish: 16/5/23 Dur: 4 days Finish: 16/6/15 Dur: 14 days Finish: 16/6/24 Dur: 7 days Finish: 16/7/8
Res: Res: Res: Res: Res: Res:
L
Start: 16/5/18 ID: 13
Finish: 16/5/26 Dur: 7 days
Res:

22
5.1 PERT CHART -
2
O P
Start: 16/6/27 ID: 16 Start: 16/7/11 ID: 17
Finish: 16/7/8 Dur: 10 days Finish: 16/7/11 Dur: 1 day
Res: Res:

23
The critical path is
AB/C/DEGHIJL
MNOP
5.1 PERT CHART -
3
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5.2 GANTT CHART
1
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5.2 GANTT CHART
2
CHART 3
5.2 GANTT

(6) CONCLUSION
In conclusion, we decide to take outsourcing alternative for self-checkout
system acquisition for Giant. There are a few reasons to support our stand.

Based on the cost benefit analysis, payback analysis and calculation of Return
on Investment (ROI) above, we can conclude that outsourcing is more beneficial for
Giant since it has the lower cost, faster payback period and higher return on
investment when compared to purchasing new software.

In addition, outsourcing is more attractive in term of its reliability and quality.

Outsourcing service providers can help to minimize risk by being watchful of
unforeseen circumstances and responsible for verifying patches. By doing so, Giant
can focus on what they do best instead of investing in research & development, thus
reduce unnecessary costs in the long run.

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