Using the System Development Life Cycle (SDLC) models,
Using the System Development Life Cycle (SDLC) models, identify which
model you would recommend for the IT organization at KDC and thoroughly explain your answer. Attached Case Study for reference.
11/30/20161Case Study: KALCH Distribution Company(KDC)OverviewKDC is a regional transportation and distribution company in operation for over 60 years. The companyserves major cities in the Mid-Atlantic region. They are headquartered in Wilmington, Delaware andhave a staff of 400 employees including truck drivers. There are 6 distribution terminals (PhiladelphiaPA, Baltimore MD, New York City, Washington DC, Newark NJ and Wilmington DE) for consolidatingfreight, and 100 delivery vehicles including 20 tractor/semi-trailer units, 40 box trucks and 40 panelvans.The company operates in a highly competitive business environment. Growth has been stagnantbecause of a slow economy. John, the president of the company, would like to see growth at 5% peryear. He would also like to see expenses cut by 5% to help fund new initiatives. Current revenue is about$39 million a year with profit running at 4%.To familiarize yourself with commonly-used shipping terms in the freight industry, visit this site and referto it as you read the case study and assignments:http://www.shipnorthamerica.com/htmfiles/glossary/gloss_shipterms.htmlCurrent Business OperationsKDC operates 24 hours a day, 7 days a week. Sales personnel (12 people, two per terminal) visitprospective customers to outline company capability, services provided and costs. When a customerdecides to use KDC they call the dispatch office with shipment information. Usually they FAX a copy ofthe bill (s) of lading to a terminal with information such as origin, destination, product description,weight and number of packages.A dispatcher at a terminal makes a list of freight pickups and sends a truck to get the freight. To do thisthey use the routing system to determine the sequence of pickups by zip code. They use local mapswithin a zip code to map out the specific order of pickups since there may be several in a zip code area.They have a performance goal of 98% of freight picked up within 24 hours of availability.A driver follows the dispatch order for pickups. Many of the drivers complain that the pickup order is notefficient. When they pick up an order they sign for receipt and either load the freight or guide thecustomer’s forklift operators to arrange it properly in the truck.After freight is picked up it is brought to the terminal where it is unloaded and sorted by destination. Adispatcher then prepares a delivery ticket (again using the routing system) that is used to load a truck inthe proper sequence for delivery. Some trucks take freight from one terminal to another while othersmake local deliveries. About half of a terminal’s space is used on any given night. Dispatchers have agoal to turn freight around in the terminal overnight for next day delivery.When freight is sent out for delivery, the driver follows the delivery ticket order. Often they are held upat a delivery destination by traffic or by lack of available unloading space. This can cause the driver to be
11/30/20162late trying to make the day’s deliveries. Sometimes they get to a destination and the facility is closedand they bring the freight back to the terminal for delivery the next day. It is unloaded and re-sorted bydestination. The dispatchers then add it to the next day’s delivery tickets.The major freight volumes are between New York, Philadelphia and Baltimore (about 70% of totalvolume). Trucks run at about 70% of capacity between terminals overall. Local delivery volume isheaviest in New York, followed by Baltimore and then Philadelphia.Local delivery trucks operate atabout 80% full while pickups fill about half of the vehicles space.Some customers pick up and/or dropfreight at a terminal with their own equipment.Truck drivers communicate with the dispatchers using two-way commercial radios. Some also carrypersonal cell phones and use them if the radio is out of range. A few drivers also carry GPS devices tohelp locate addresses. In general the drivers are content with the company. Pay and benefits are goodand they get overtime pay when deliveries run late. Complaints are few and mostly center around eitherthe sequence of pickup and delivery of shipments or vehicle maintenance.The fleet is maintained at the main Wilmington maintenance shop and at a smaller shop in Washington.Either one can handle minor maintenance and preventative work. Only Wilmington can perform majorengine and transmission work. Overall the fleet is in good operating condition. All vehicles are on apreventative maintenance schedule which places them out of service two days a month, usually onweekends. Maintenance scheduling is a challenge because it can interfere with the steady flow ofshipments both between terminals and for local delivery. There are no “extra” vehicles in the fleet.AdministrationThe company management team consists of the President, Vice President of Operations, Chief FinancialOfficer (CFO), Chief Information Officer (CIO), Sales Manager, and a Fleet Manager who is in charge ofmaintenance and safety. They meet weekly to discuss opportunities and issues and to plan for thefuture. Except for the CIO, the management team has been in place for many yearsThe president of the company just hired its first Chief Information Officer (CIO), Leona, after theprevious IT Director retired.She comes from a nearby manufacturer who is also a major customer. Atthat company she was Deputy CIO and primarily responsible for network operations and security.At a recent meeting the management team decided to change the strategic plan for the business inorder to meet growth and cost goals. They highlighted three new strategies they want to employ toincrease profitability and grow the business. First, they desire to provide warehousing services forcustomers who want to reduce delivery time to their customers by having product available locally.Second, they want to improve the percent of loaded miles in their fleet to reduce costs by coordinatingthe pickup and delivery of freight at the same time in the same geographic area. Third, they want totrack the whereabouts of freight both in the terminals and on the trucks to provide customers withaccurate delivery dates and times.
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