Jajurie, Nur-Ranji C.

CE 297 Final Project

2012-53949 Integrated RFID Improvement System

IDEA DEVELOPMENT FORM

Section A Project Name: I.R.I.S.
Requestor Name: Nur-Ranji C. Jajurie (Integrated RFID Improvement System)
Date Request Submitted: 15 Dec 2020
System Name: RFID System
Date Needed by: June 2021
Section B
(Reviewer completes this section)
☐ Approved
Idea Reviewer:
Date Reviewed: ☐ Not Approved – Reason for non-approval
Project ID:
Section C Work Type (Reviewer completes this section)

☐ Enhancement ☐ Emergency ☐ Fix

Section D (Requestor Completes this Section)

1. Provide a Description (What is it?)

Radio-Frequency Identification (RFID) refers to a technology in which digital data

encoded in RFID tags or stickers are captured by a sensor via radio waves. This
technology is like barcoding in that data from a tag or label are captured by a device
which stores the data in a database. RFID, however, has several advantages over
systems which use barcodes as tracking devices. One notable feature of RFID stickers
is that it can be read outside the line-of-sight, whereas barcodes must be aligned with
the sensors.

And as a response to the requirement of the Toll Regulatory Board (TRB), in which
Tollway Operators shall also offer an Electronic Toll Collection (ETC) System to its
motorists, NLEX Corporation (NLEX Corp.) adapted the RFID System as an additional
Toll Collection Facility for both the North Luzon Expressway (NLEX) and Subic-Clark-
Tarlac Expressway (SCTEX) in 2017. And as of August 2020, around 30% of the
customers of NLEX Corp. are RFID users.

However, on the onset of COVID-19 pandemic in the Philippines last March 2020, the
Inter-Agency Task Force (IATF) established protocols requiring social distancing in all
forms of communications and transactions. The Department of Transportation
(DOTr) released D.O. 2020-012 which requires the full transition to cashless and
contactless transactions in toll expressways. Concessionaires, like the NLEX Corp.,
were given three months to prepare for the implementation of a 100% RFID System,
which initially was scheduled to be implemented on November 2020, and was later
rescheduled to 01 December 2020.

In the span of three months, various improvements were initiated by NLEX Corp. such
as the aggressive marketing campaign of RFID, the installation of millions RFID
stickers, enhancement of RFID reading system, training of personnel, development of
a mobile application for easier accessibility of RFID accounts, and partnering with
various companies to alleviate the woes of the motoring public regarding reloading of
their RFID accounts.
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2012-53949 Integrated RFID Improvement System
However, on the first weeks of the full implementation of full RFID transaction, long
queues were experienced on various toll collection plazas. These resulted to unusual
traffic buildup in the areas of Northern Metro Manila, Bulacan, and Pampanga which
resulted not only to frustration and inconvenience of the motoring public but also red
flags from various local government units. It was identified that the delay on the
reading of the RFID tags caused the long queues on the toll collection facilities.

And as NLEX Corp. aims to be a champion in the tollway industry in Southeast Asia, it
is necessary to revamp and continuously improve its toll collection systems. The
Integrated RFID Improvement System, or I.R.I.S., is a project which aims not only to
improve the current RFID system, but also ensure to regain the trust of the motoring
public and the national government on the company’s projects.

2. Why should we do this? (Explain the business value and select the appropriate
benefit type.)

As introduced in the previous section, doing the project is necessary in order to

provide a permanent solution to the woes of the of RFID users in NLEX Corp. An RFID
system upgrade is what the company needed in order to regain its established
intimacy with its customers and provide better relationship with the government
units.

And with the potential risk of receiving penalties and the probable of suspension of
business permit due to negative customer feedbacks, it is obligatory for the company
to strive for a long-term sustainable solution that is aligned with the company’s value
propositions (Customer-Focus, Integrity, Teamwork, Innovation, Excellence, and
Social Responsibility).

Benefit Type (more than one type can apply) Estimate if possible
☐ Creates Revenue Estimated Annual Revenue:

☐ Cost Avoidance Estimated Cost Avoidance: Per penalty occurrence

☐ Cost Savings Estimated Annual Savings:

☐ Operational Reliability
☐ Customer Service Enhancement

☐ Quality Improvement

3. Scope (Describe what it includes and excludes)

I.R.I.S. is an RFID improvement project which focuses on NLEX Corp.’s RFID readers.
This will include the design, manufacturing, supply, installation, testing, and
commissioning of improved RFID readers which will ensure to reach the company’s
target of 3-sec total transaction time for each customer.

As there is already an ongoing effort about the interoperability of RFID tags, a close
coordination with the other project teams shall be observed to ensure that the new
RFID readers are compatible and aligned with other ongoing projects for the RFID
systems.
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2012-53949 Integrated RFID Improvement System
4. Deliverables (Report changes, new screen, data entry, etc.)

Finalized Design and Drawings, Software Improvement, Hardware/Parts Installation,

and Testing and Commissioning Report.

5. Impacted Departments/Customers

The major impacted departments for this project are the Toll Systems, Operations,
Technology departments of NLEX Corp. Whereas, all customers of NLEX Corp. which
uses RFID shall benefit from this project.

6. Assumptions

There is no ongoing enhancement project for RFID system of NLEX Corp. that targets
to decrease the transaction time and that there is an available budget for this
initiative.

7. Related Projects

All previous enhancement projects for the RFID system of NLEX Corp.

8. Risk/Impact of not doing project

Penalties may be incurred by NLEX Corp. once the Toll Regulatory Board releases its
new Minimum Performance Standards Specifications which includes standards for
transaction time on RFID systems.

Also, this may affect the image of NLEX Corp. with its partners in the government as it
promised to improve its tollway collection system.
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2012-53949 Integrated RFID Improvement System

1.0 Project Integration Management

Upon approval of the I.R.I.S. by the company’s requisition committee, a project

charter shall be released in a form of an internal memorandum. The memo shall
include the appointed project manager, Mr. Nur-Ranji C. Jajurie, and its core team
members, the preliminary project scope statement (which was discussed in the
Idea Development Form), the project objectives and how it will be carried out,
and who are the identified stakeholders for the project.

After which, a thorough project management plan shall be developed. And as

I.R.I.S. is a design, manufacture, supply, and install project, various project
management and subsidiary (e.g. project time management, project cost
management, etc.) plans shall be defined, prepared, integrated, and coordinated
in order to ensure the proper execution, monitoring, and control of each project
phase.

And in monitoring and controlling the project work, work performance

information (i.e. the status of project deliverables, the cost incurred, the time
elapsed in the project, etc.) will be used along with the project management plan.
Tools such as expert judgment, analytical techniques, project management
information system, and weekly coordination meetings shall be used as means to
ensure that the set performance measurement baselines for I.R.I.S. are being met
or that the appropriate corrective and preventive actions are undertaken
whenever necessary.

2.0 Project Scope Management

As introduced in the Idea Development Form, I.R.I.S. will improve the current
RFID Toll Collection System of NLEX Corp. through re-designing and upgrading
of all the existing RFID assets. A target of 3 second overall transaction time shall
be attained by all installed RFID systems by the end of project implementation.

Expected deliverables for this project are the design of the parts that will be
improved on the current RFID systems owned by NLEX Corp, the development or
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2012-53949 Integrated RFID Improvement System
upgrading of software, the manufacturing and installation of new parts, and the
testing and commissioning of all improvements that will be implemented. Project
milestones are shown in Table 2.1.

PROJECT MILESTONE TARGET DELIVERY

Design of New RFID System Parts
1st week of February 2021
(e.g. Tags, Responders, Readers, etc.)
New RFID System Mock-Up 1st week of March 2021
Production of New Parts Last week of April 2021
Parts Installation 2nd week of May 2021
Testing and Commissioning 1st week of June 2021
Project Close-out Last week of June 2021
Table 2.1 Project Milestones

Project acceptance criteria shall be the successful attainment of 3 second overall

transaction time at 99% confidence level on all upgraded RFID readers in the toll
plazas within the approved budget and deadline set by the TRB which is 2 nd week
of July 2021.

And with regard to the ongoing initiative among the various tollway
development companies and local government units regarding the
interoperability of all RFID stickers in all expressways in the Philippines- the
assigned Project Team of NLEX Corp. will be expected to work concurrently with
the I.R.I.S. team in order to ensure the project’s deliverables are able to adapt to
any system upgrade mandated by TRB.

3.0 Project Quality Management

To ensure that the project will meet its objectives, proper Quality Planning,
Quality Assurance, and Quality Control will be practiced. The project acceptance
criteria discussed on the previous section, along with the welfare of the
stakeholders, identified risks, and existing performance standards, will be the
baseline for the quality management of the project.

Project milestone, such as the improved performances of the new parts, will be
compared to existing performance of not only the current company’s RFID
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2012-53949 Integrated RFID Improvement System
system but also its competitors. The existing external auditor of NLEX Corp. will
perform random quality audits for this project for quality assurance. Changes in
design shall be undertaken whenever the project does not meet the quality
metrics for the project.

4.0 Project Cost Management

The indicative costs for this project are shown in Table 4.1. The escalated rates
from previous enhancement of projects of RFID scanners along with the
submitted quotation from the Star Systems International (which is the
contracted RFID distributor for the Metro Pacific Tollway Company) were used
in coming up with these indicative costs.
In Million Pesos
1.
0 Direct Costs 1,150.00
2.
0 Indirect Costs 250.00
3.
0 Time Related Costs 200.00
4.
0 Labor Costs 300.00
5.
0 Transport Costs 250.00
6.
0 Procurement Costs 300.00
7.
0 Project Office Costs 50.00
Total 2,500.00*
*based on Oct 2020 prices and inclusive of all applicable taxes
Table 4.1 Project Indicative Costs

For this project, the cost estimator and control officer shall be in charged with
the development of the project budget which shall be the baseline of all the costs
and create a set of actions that will keep the team on track. He too shall be in
charge with the production of accurate detailed unit price analyses along with
the final bill of quantities for the project.

Unexpected costs such as the cost what will be incurred because of the ongoing
pandemic (i.e. transportation limitations, lockdowns, health and safety
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2012-53949 Integrated RFID Improvement System
protocols) will also be accounted for the project. Additional budget shall be
requested once the projected figures for the unexpected costs are finalized.

5.0 Project Time Management

The project is identified as time restrained as must be delivered by the end of

June 2021 as decided during the Senate hearing held last 17 December 2020.
Hence, the usual 1-year duration product enhancement of the toll collection
systems was compressed into 6 months (which shall commence from 01 January
2021 until the last week of June 2020). The projected project schedule is shown
is Tables 5.1 and 5.2.

Jan Feb Mar Apr May Jun

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1.0 Design of New RFID Parts
1.1 Ta gs a nd Res ponder
1.2 RFID Reader a nd Res ponder
1.3 Antenna
1.4 Computer Sys tem a nd Integra ti on
2.0 Product Modelling and Mock-Up
2.1 Mock-Up Pa rts Manufa cturi ng
2.2 Tes ti ng a nd Readjus tments
2.3 Va l ue Engi neeri ng
3.0 Production of New Parts
3.1 Ta gs a nd Res ponder
3.2 RFID Reader a nd Res ponder
3.3 Antenna
3.4 Legal Requi rements and Product Regi s trati on
4.0 Parts Installation `
5.0 Testing and Commisioning
5.1 Ta gs a nd Res ponder
5.2 RFID Reader a nd Res ponder
5.3 Antenna
5.4 Product Rea djus tments
6.0 Project Closeout

Table 5.1 Project Schedule

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2012-53949 Integrated RFID Improvement System

Table 5.2 Project S-Curve

Upon the commencement of the project, the planning and scheduling officer shall
be in charged in handling the use of Primavera Software, which shall be the main
tool to be used for schedule management. Schedules shall be reviewed weekly
and will be discussed during the weekly progress meetings. A proper resource
planning (c/o human resource and procurement management) shall also be
applied in order to ensure that resources are available once needed per schedule.

6.0 Project Human Resource Management

For this project, there shall be one (1) assigned Project Manager from the Project
Management Department (PMD) of NLEX Corp. He shall play the lead role in
planning, executing, monitoring, controlling, and closing the project. He shall also
be in charged with the reporting of the project updates to the management of
NLEX Corp.

The Project Manager shall organize his team which shall be composed of
Engineering and Design Manager, Fixed Operating Equipment Officer, Quality
Assurance and Quality Control Officer, Planning and Scheduling Specialist,
Procurement Officer, Cost Estimator and Control Officer, and Contracts
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2012-53949 Integrated RFID Improvement System
Administrator. Each member of the team can have their own corresponding sub-
teams upon approval of the Project Manager.

Figure 6.1 Project Organizational Chart

As seen on the project organizational chart above, members of the project team
shall come from various sections and departments of NLEX Corp. If a
section/department failed to assign its representative for the project, the Human
Resources (HR) shall hire a competent project-based employee, whose
qualification shall be set by the Project Manager.

7.0 Project Procurement Management

Existing company policies shall be used for the procurement management for
this project. Hence, SAP (System Application and Product) will be used as the
enterprise resource planning system which will be responsible for the purchase
requisition, purchase order, invoice approval, vendor management, and contract
approval for I.R.I.S.

The project team shall closely coordinate with the company’s Supply Chain and
Management to ensure that all procurements for this project undergone the
proper evaluation and processing.
A close coordination between the Star Systems International and the Project
Team is expected as Star Systems International will be in charged with the
manufacturing, supply, installation, testing, and commissioning, of all RFID
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2012-53949 Integrated RFID Improvement System
readers. As Star Systems International is in Malaysia, procurement processing
shall be managed carefully to ensure that all possible delays in relation to the
COVID-19 pandemic will be accounted for.

8.0 Project Risk Management

All potential risks for the project shall be identified at the beginning of the
project as well as periodically throughout its implementation. Risks will be
properly documented and prioritized according to impact. A sample risk
assessment table that will be used in the project is shown in Table 8.1:

Response
Risk Consequences Probability Impact Priority Assignee
Plan
(1) Deployment of
Finalization of additional manpower
Overall project Project Manager,
design will be High High High for design;
delay Technical Head
delayed (2) Manufacturing of
‘unfinalized’ design
Project Manager,
Low material Overall project (1) Identify other
Low High Medium Procurement
resources delay potential suppliers
Head
(1) Coordinate with
potential suppliers of
parts located in the
Shipping
Philippines Project Manager,
delays due to Overall project
High High High (2) Coordinate closely Procurement
COVID-19 delay
with various Local Head
pandemic
Government Units of
Philippines and
Malaysia

Table 8.1. Sample Risk Identification and Assessment

As seen in the sample above, risks shall be evaluated and each consequences,
probability, and impact will be assessed. Each risk will then be assigned to a
team member, prioritized, and given an estimate of the resources needed to
handle the risk. Each risk shall have its corresponding preventative strategy and
contingency plan in case things went wrong. Finally, all risks will be monitored,
reported, and coordinated with the project stakeholders in order to identify the
risk threshold for the project.
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2012-53949 Integrated RFID Improvement System

9.0 Project Stakeholder Management

All internal and external stakeholders for the project shall be identified and then
prioritized. A matrix shall be developed in order to determine the stakeholders
with high interest, high priority vs. low interest, low priority. Expectations for
the project shall be set and manage at varying degrees depending on the priority
of the identified stakeholders.

High interest and high priority stakeholders such the Toll Regulatory Board
(TRB) and the NLEX Corp’s Management Committee shall be prioritized and that
all project updates will be regularly and closely coordinated. As for the other
identified stakeholders in the matrix, the project team shall keep the
communication lines open, but keep a firm boundary depending on its priorities.

10.0 Project Communications Management

Because of the ongoing issues regarding the excellence of NLEX Corp. as a

tollway developer company, proper communication management is essential all
throughout the project.

The project management plan which shall include both the resource
management and stakeholder engagement plans will be the key inputs in the
project’s communication management plan, along with the developed project
charter and other project documents. Effective tools and techniques, such as
expert judgement, communication methods and models, interpersonal and team
skills, data presentation, and regular meetings shall be used in order to ensure
that I.R.I.S. will have an effective communication to all its stakeholders.

For the project’s internal stakeholders, the project team shall utilize the
company’s information management system in providing project updates, along
with providing regular updates and risk assessment during the weekly
management committee meeting. As for its external stakeholders, a close
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2012-53949 Integrated RFID Improvement System
coordination with the company’s Communication and Stakeholder’s
Management (CSM) and Government Relations (GovRel) departments shall be
practiced. Per company policy, CSM and GovRel shall be in charge with all the
communications with the government units along with the utilization of the
company’s various social networking accounts which will be the primary tool in
providing timely updates regarding the project status.