ISQS 4348: Systems Analysis
Feasibility Study
GPS Positioning System Upgrade
Ryan Alexander
Nathan Blacketer
Chris Carter
Louis Guido
Jeffrey Morris
Table of Contents
System Summary .......................................................................................................................................... 3
Project Summary........................................................................................................................................... 3
Project Name ............................................................................................................................................ 3
Responsible Users ..................................................................................................................................... 3
Responsible Analysts................................................................................................................................. 3
Scope ......................................................................................................................................................... 3
Start Date .................................................................................................................................................. 3
Project Completion Date........................................................................................................................... 3
Completion Date for Structured Specification .......................................................................................... 3
Project Budget Amount: ........................................................................................................................... 3
Background ................................................................................................................................................... 4
Data Sheets ................................................................................................................................................... 4
System Description ....................................................................................................................................... 4
Purpose ..................................................................................................................................................... 4
Components .............................................................................................................................................. 5
Inputs ........................................................................................................................................................ 5
Outputs ..................................................................................................................................................... 5
New System Constraints and Assumptions .................................................................................................. 5
Constraints ................................................................................................................................................ 5
Assumptions.............................................................................................................................................. 5
Interface to Other Systems ........................................................................................................................... 6
Cost Benefit Analysis ..................................................................................................................................... 6
Technical Feasibility .................................................................................................................................. 6
Economic Analysis ................................................................................................................................. 6
Schedules, Timeline Analysis: ............................................................................................................... 6
Economic Feasibility.................................................................................................................................. 6
Project Benefits ..................................................................................................................................... 7
Project Costs ......................................................................................................................................... 8
Cost Benefit Analysis ............................................................................................................................. 9
Baseline Project Plane................................................................................................................................. 13
Project Overview..................................................................................................................................... 13
System Description ................................................................................................................................. 13
Feasibility Study
GPS Positioning System Upgrade
System Summary
Fleet Hawk GPS tracking is a system that uses the Global Positioning System (GPS) to track the location
of fleet vehicles. Using at least three GPS satellite signals, the system can accurately track, anywhere on
Earth, the location, speed, and direction of any vehicle equipped with a tracking signal.
Project Summary
Project Name
GPS Positioning System Upgrade
Responsible Users
Fleet Hawk GPS Tracking
Responsible Analysts
Ryan Alexander, Nathan Blacketer, Chris Carter, Louis Guido, Jeff Morris
Scope
This project will add: two-way communication between a driver and the base station, remote
unlock/lock to the existing GPS system. In addition, the system will maintain accurate tracking and a
user friendly GUI.
Start Date
January 2009
Project Completion Date
December 2009
Completion Date for Structured Specification
May 2009
Project Budget Amount:
$619,850.00
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Feasibility Study
GPS Positioning System Upgrade
Background
Fleet Hawk GPS tracking is a system that uses the Global Positioning System (GPS) to track the
location of fleet vehicles. By using at least three GPS satellite signals, the system can accurately track,
anywhere on Earth, location, speed, and direction of a vehicle equipped with a tracking signal
transponder.
While the current system in place functions as intended, additional features would increase
sales company wide, increase the efficiency of resource allocation, and increase the usefulness of the
system.
One requested feature by many of our clients is the addition of modular subsystem enabling
two-way communication. This would allow drivers to directly communicate with a dispatcher or base
station, increasing the speed of response for problems such as missed deliveries, unexpected
impediments, and last minute schedule changes. With the ability to communicate on the fly, drivers
could save gas, time, and vehicle wear.
The second requested feature is a way to remotely lock and unlock a vehicle, along with theft
tracking. Accidents do happen, and the inability for a driver to access his vehicle represents a large loss
of time and revenue for a simple problem. If the home base station is able to remotely open a vehicle, or
issue a universal lock command when business hours are over, numerous productive hours could be
saved. The benefits of theft tracking are obvious, as the recovery of an asset as large as a delivery truck
represents great savings to the company.
The final stipulation is; implementation of these features must preserve the core mission of
vehicle tracking, and feature a user interface understandable by the employees in the vehicle hub and
those driving the vehicles.
Data Sheets
System Description
Purpose
The new system will be built from the current modular GPS devices installed in our clients’ fleet
vehicles. However, in addition to the current hardware, new hardware will also be necessary for the
system to work properly. Specifically hardware that enables a two-way communication with QWERTY
keyboard or touch interface will be necessary to allow for the communication between the dispatcher
and the service technicians or drivers. This communication will not be based off of the GPS signal used
by tracking, but instead a dedicated two-way paging service/ data package.
In addition to the mobile unit, the system will include a password encrypted website allowing
the clients’ dispatching center to remotely view output statistics given by the mobile units. By viewing
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Feasibility Study
GPS Positioning System Upgrade
these consistently updated statistics, the dispatcher will be able to use the system as a Decision Support
System in choosing and sending field technicians to a particular site or activity. Furthermore, the system
will allow the dispatcher the option of remotely locking or unlocking vehicles at any given time.
Components
The system will include various components such as the transponder, wiring harness to the vehicle, a
two-way communication screen, cell communication hardware and data package, satellites, satellite
dishes, servers to hold data, and a website interface to users. Because client satisfaction will be kept in
high regard, a technical support division will be a vital component of the new system.
Inputs
Inputs of the system will include starting/ stopping the vehicles, lock/ unlock commands, text based
communications between the website user and vehicles, and the location from the transponder units of
various vehicles.
Outputs
Outputs of the system will include the current and past location/speed of the vehicles, lock/unlock
status of the vehicles, and two-way communication logs between the drivers and the dispatcher
New System Constraints and Assumptions
Constraints
As with any system, several constraints will affect the system. The system will only allow up to 10
different web users access to varying amounts of information. These users will be allocated their
privileges by a single web user administrator designated by the client company. The system will only
allow up to 100 vehicles to be tracked at a given time. In order to issue unlock/lock commands,
additional security measure will be taken. Two-Way communications will be limited to alphanumeric
characters in order to quickly and accurately relay information. The average civilian GPS system is
accurate to within 10m horizontally and 13m vertically, about 32 ft and 43 feet respectively.
Assumptions
The system will be fully functional at least 90% of the time, with locations of the vehicle updated on the
servers 97% of the time. All web interface users will require approximately two hours of additional
training to use the system properly, while drivers will require approximately one hour of training. The
vehicle systems will be made to run off of 12 Volts DC. Each client company will be allocated ten
Gigabytes of data space on the servers allowing for one month of data logging. The web user interface
shall be constructed in a fashion that promotes usability for nontechnical users.
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Feasibility Study
GPS Positioning System Upgrade
Interface to Other Systems
Any GPS system is able to transmit a signal to the satellites and be able to determine where it is
located on the planet. The system will need the ability to be upgraded and shall be compatible with both
Windows and UNIX operating systems to update to a computer.
Cost Benefit Analysis
Technical Feasibility
Economic Analysis
We have the capital to invest into this profitable venture. This project also will start to show financial
benefits early on in this project.
Operational Analysis
This will allow us to operate efficiently as well as allow better communications between the driver and
the clients’ base of operations. This will lead to reduced downtime stemming from not knowing where
to drive or not being able to find the location. We also expect our operators to have to learn the new
application.
Schedules, Timeline Analysis:
Beginning January, we will begin to design this system of our company. In May 2009, we plan to have
completed our structured specification. At the end of the year in December of 2009 we will have
completed the entire project for an overall time span of 1 year for total system design and
implementation.
Economic Feasibility
It was determined that three options existed to solve our GPS Positioning System needs. These options
include:
1) Use the Current System
2) Buy a New System
3) Develop a New System In-House
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Feasibility Study
GPS Positioning System Upgrade
Project Benefits
For the overall project, a benefit had to be calculated based on tangible and intangible benefits that
could be derived from the potential project outcome. These benefits are outlined in the following
paragraphs and tables.
Tangible Benefits
It was determined that the estimated tangible benefits sum up to $619,850.00 per year based
on the calculations shown below:
Tangible Benefits
Cost Reduction or Avoidance
Error Reduction
Increased Flexibility
Increased Speed of Activity
Improvement in Management Planning or Control
Increase Sales
Total Tangible Benefits
$66,000.00
$850.00
$33,000.00
$40,000.00
$80,000.00
$400,000.00
$619,850.00
Intangible Benefits
The project also has many derived intangible benefits with proper usage and implementation. With a
more accurate GPS Positioning System in place, it will force employees to be more accountable for the
equipment they use and maintain on a daily basis, as the data transmitted back to the office will be
highly accurate. In addition, this increased accuracy in information will allow the potential of operational
efficiency to increase during daily use. Other things constant, brand recognition is likely to increase
because of a more efficient operation. Lastly, the client will be able to become more green, by eliminate
its' paper usage. Once the system is fully integrated, it will no longer be necessary to print out daily
maps, but rather use electronic based maps generation with live information.
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Feasibility Study
GPS Positioning System Upgrade
Project Costs
For each option, a project cost had to be calculated based on One-Time Costs and Recurring Costs. The
tables below show this calculation for each project. This was necessary to perform the NPV, ROI and
Break-even analysis.
Option 1: Use Current System
One-Time Costs
Renewal
Total One Time Costs
$
$
-
Recurring Costs
Programmers
Administrative Cost
Technical Support
Marketing
Overhead
Total Recurring Costs
$120,000.00
$85,000.00
$60,000.00
$20,000.00
$25,000.00
$310,000.00
Option 2: Buy New System
One-Time Costs
Customization Costs
Buy New Hardware
New Software
Employee Training
Data or System Conversion
Total One-Time Costs
$60,000.00
$50,000.00
$105,000.00
$20,000.00
$47,000.00
$282,000.00
Recurring Costs
Software Maintenance
Data Storage
Internet Communications
Personnel Salaries
Total Recurring Costs
Page 8
$65,000.00
$11,500.00
$7,900.00
$85,000.00
$169,400.00
Feasibility Study
GPS Positioning System Upgrade
Option 3: Develop New System
One-Time Costs
Development Costs
Buy New Hardware
Employee Training
Data or System Conversion
Total One-Time Costs
$180,000.00
$50,000.00
$25,000.00
$80,000.00
$335,000.00
Recurring Costs
Software Maintenance
Data Storage
Internet Communications
Personnel Salaries
Total Recurring Costs
$80,000.00
$11,500.00
$7,900.00
$85,000.00
$184,400.00
Cost Benefit Analysis
For each option, a Net Present Value analysis and Break-even point analysis was performed to decide
which option would provide the best financial gain. It was determined that option 3, developing a new
system, was the most cost effective solution as it provide a 1.33 year break-even point. Please refer to
the calculations on the next three pages for more details.
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Feasibility Study
GPS Positioning System Upgrade
Option 1: Use Current System
Year 0
Year 1
Net Economic
Benefit
Discount Rate (7%)
PV of Benefits
NPV of All Benefits
$
$
$
1.00
-
One-Time Costs
$
-
Recurring Costs
Discount Rate (7%)
PV of Recurring Costs
$
$
$
NPV of All Costs
$
NPV
ROI
$ 6,696,690.50
5.27
Break-Even Analysis
Yearly NPV Cash
Flow
Overall NPV Cash
Flow
$
$
Break-even
Break-even fraction
Year 2
Year 3
Year 4
Year 5
Totals
$
$
$
$
619,850.00
0.93
579,299.07
579,299.07
$ 619,850.00
$
0.87
$ 541,401.00
$ 1,120,700.06
$ 619,850.00
$
0.82
$ 505,982.24
$ 1,626,682.30
$ 619,850.00
$
0.76
$ 472,880.60
$ 2,099,562.90
$ 619,850.00
$
0.71
$ 441,944.48
$ 2,541,507.38
$ 7,967,751.70
1.00
-
$
$
$
310,000.00
0.93
289,719.63
$
$
$
310,000.00
0.87
270,766.01
$
$
$
310,000.00
0.82
253,052.34
$
$
$
$
$
$
310,000.00
0.71
221,025.72
$ 1,271,061.21
-
$
289,719.63
$
560,485.63
$
813,537.97
$ 1,050,035.49
$ 1,271,061.21
$ 1,271,061.21
-
$
289,579.44
$
270,634.99
$
252,929.90
$
-
$
289,579.44
$
560,214.43
$
813,144.33
$ 1,049,527.41
5.27 years
0.000
Page 10
310,000.00
0.76
236,497.52
236,383.08
$
220,918.77
$ 1,270,446.18
Feasibility Study
GPS Positioning System Upgrade
Option 2: Buy New System
Year 0
Net Economic Benefit
$
Year 1
619,850.00
Year 2
619,850.00
$
$
$
$
0.93
579,299.07
579,299.07
$
0.87
$ 541,401.00
$ 1,120,700.06
$
0.82
$ 505,982.24
$ 1,626,682.30
$
0.76
$ 472,880.60
$ 2,099,562.90
Year 5
$ 619,850.00
$
0.71
$ 441,944.48
$ 2,541,507.38
$
Year 3
619,850.00
$
Year 4
619,850.00
Discount Rate (7%)
PV of Benefits
NPV of All Benefits
$
$
$
1.00
-
One-Time Costs
$
-
Recurring Costs
$
-
$
310,000.00
$
310,000.00
$
310,000.00
$
310,000.00
$
Discount Rate (7%)
PV of Recurring Costs
$
$
1.00
-
$
$
0.93
289,719.63
$
$
0.87
270,766.01
$
$
0.82
253,052.34
$
$
0.76
236,497.52
$
NPV of All Costs
$
-
$
289,719.63
$
560,485.63
$
813,537.97
$ 1,050,035.49
NPV
ROI
$ 6,696,690.50
5.27
Break-Even Analysis
Yearly NPV Cash Flow
Overall NPV Cash
Flow
Break-even
Break-even fraction
$
-
$
289,579.44
$
270,634.99
$
252,929.90
$
$
-
$
289,579.44
$
560,214.43
$
813,144.33
$ 1,049,527.41
5.27 years
0.000
Page 11
236,383.08
Totals
$ 7,967,751.70
310,000.00
$
0.71
221,025.72
$ 1,271,061.21
$ 1,271,061.21
$ 1,271,061.21
$
220,918.77
$ 1,270,446.18
Feasibility Study
GPS Positioning System Upgrade
Option 3: Develop New System
Year 0
Net Economic Benefit
$
Year 1
619,850.00
Year 2
619,850.00
$
$
$
$
0.93
579,299.07
579,299.07
$
0.87
$ 541,401.00
$ 1,120,700.06
$
0.82
$ 505,982.24
$ 1,626,682.30
$
0.76
$ 472,880.60
$ 2,099,562.90
Year 5
$ 619,850.00
$
0.71
$ 441,944.48
$ 2,541,507.38
$
Year 3
619,850.00
$
Year 4
619,850.00
Discount Rate (7%)
PV of Benefits
NPV of All Benefits
$
$
$
1.00
-
One-Time Costs
$
282,000.00
Recurring Costs
$
-
$
169,400.00
$
169,400.00
$
169,400.00
$
169,400.00
$
Discount Rate (7%)
PV of Recurring Costs
$
$
1.00
-
$
$
0.93
158,317.76
$
$
0.87
147,960.52
$
$
0.82
138,280.86
$
$
0.76
129,234.45
NPV of All Costs
$
282,000.00
$
440,317.76
$
588,278.28
$
726,559.14
$
NPV
ROI
$ 6,991,178.26
7.16
$ (282,000.00)
$
420,981.31
$
393,440.48
$
367,701.38
$
$ (282,000.00)
$
138,981.31
$
532,421.78
$
900,123.16
$ 1,243,769.31
Break-Even Analysis
Yearly NPV Cash Flow
Overall NPV Cash
Flow
Break-even
Break-even fraction
7.16 years
0.670
Page 12
Totals
$ 7,967,751.70
$
169,400.00
$
0.71
120,779.86
$
694,573.45
855,793.59
$
976,573.45
$
976,573.45
343,646.15
$
321,164.62
$ 1,564,933.94
Feasibility Study
GPS Positioning System Upgrade
Baseline Project Plane
Project Overview
To design and build a GPS tracking system for fleet based vehicles that will provide two-way
communications to the drivers. This system must be updated in real-time, as well and reliable, all while
providing other client requested upgrades such as remote unlocking and car disabling. The current
system is slow and unreliable and its tracking can be delayed up to an hour. Furthermore, the current
system does not provide communication to the driver.
System Description
While this system functions as intended, additional features would increase productivity
company wide, increase the efficiency of resource allocation, and increase the usefulness of the system.
One requested feature is the addition of two-way communication. This would allow drivers to
directly communicate with a dispatcher or base station, increasing the speed of response for problems
such as missed deliveries, unexpected impediments, and last minute schedule changes. With the ability
to communicate on the fly, drivers could save gas, time, and vehicle wear.
The second feature, is a way to remotely lock and unlock the vehicles, along with theft tracking.
Accidents do happen, and the inability for a driver to access his truck represents a large loss of time and
revenue for a simple problem. If the home base station is able to remotely open their trucks, or issue a
universal lock command when business hours are over, numerous productive hours could be saved. The
benefits of theft tracking are obvious, as the recovery of an asset as large as a delivery truck represents
great savings to the company.
The final stipulation is as follows: implementation of these features must preserve the core
mission of vehicle tracking, and feature a user interface understandable by the employees in the vehicle
hub and those driving the vehicles.
Page 13