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POL00001697
POL00001697
Back Office Efficiency Programme
- Stock Adjustments
Project Definition Document
AUTHORS
Business Analyst
Ras Chauhan
REVIEWERS
P&BA Change Manager
Network — Concept Design Authority
P&BA Finance Analyst
Solutions Architect
HNG-X Release 2 Testing Manager
Principal Testing Manager
Service Delivery
Legal
Network
Dawn Brooks
Lee James
Paul Lebeter
lan Trundell
James Brett
Tonnvane Wiswell
Andrew Price
Hugh Flemington
Shaun Turner
SIGN OFF AUTHORITY Back Office Efficiency Programme Manager I Martin Box
(Note: Minimum Sign- I Head of P&BA Rod Ismay
Off Authority required is I Strategy and Architecture Peter Stanley
by the Back Office Network Lynn Hobbs
Efficiency Programme Business Partner Ann Clarke
Manager) Project QA Simon Baker
Service Delivery Steve Beddoe
Legal Sarah White
DocuMENT REFERENCE I PROJ 1 STOCK ADJUSTMENTS PDD
NUMBER
OPERATIONAL BASELINE
NUMBER
VERSION 01
STATUS Draft for Formal Review
DATE 25/03/2010
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1 Document Control Information
1.1 Version History
0.1 25/03/2010 I Draft for formal review
1.2 References / Related / Dependent / Parent Documents
!) iness Case
(Initial)Project Plan
Risk Assessment
(initial)Risk Log
(Initial) Issue Log
Project Organisation
Stakeholder Management Plan
Communication Plan
Project Quality Plan
Security Risk Assessment
Product Checklist
Product Breakdown Structure(s)
Product Flow Diagram(s)
Specialist Product Descriptions(s)
Commercial Terms (where known)
1.3 Terms and Abbreviations
HNG-X Horizon Online (system at Post Office counters)
JTT Joint Test Team
PDD Project Definition Document
POL Post Office Limited
P&BA Product and Branch Accounting
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Contents
1 Executive Summary.
2 Introduction ..
3 Background..
4 Project Definition...
44 Statement of Objectives ....
4.2 Critical Success Factors
43 Project Scope
44 Project Approact
45 Exclusions
46 Assumptions
47 Constraints ....
48 Key Interfaces & Dependencies ..
Project Control ....
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1 Executive Summary
The Stock Adjustments project is part of the Back Office Efficiency Programme within Post
Office Limited.
The objective of this project is to enhance the current Horizon Online functionality so that,
where stock adjustments are made or discrepancies confirmed, the clerk will be forced to
supply a reason where these breach the tolerances set within Reference Data.
The Stock Adjustments project is a key enabler for cost reduction and benefits delivery in P&BA,
forming part of the Back Office Efficiency Programme.
Business case costs for this project are expected to be circa £500K.
The selection of a Stock Adjustment Reason (where adjustments or discrepancies breach the
set tolerances) will apply to the Adjust Stock functionality and Confirm Discrepancies
functionality on Horizon Online and enable POL to realise a number of financial and non-
financial benefits. These include:
e Improved accuracy of adjustments and discrepancies
« Discourage / reduce inappropriate adjustments / discrepancies
« Improved MI to enable more effective monitoring of stock position in branches
e Reduction in POL losses due to inappropriate adjustment / discrepancies in branches
e More effective and efficient stock management in branches
e Minimise inappropriate adjustments / discrepancies
« Minimise opportunities / potential for fraud
The Stock Adjustments project delivery is scheduled to be delivered as part of HNG-X
Release 2. Current implementation timeline is expected to be in the 30 quarter of 2010
Post Office Limited will manage the project with input from Fujitsu Services Limited.
2 Introduction
The purpose of this document is to define the basis for the management and assessment of
overall success of the Stock Adjustments project. As such it has two main uses:-
e to ensure that the project is sufficiently well defined to allow the Project Board to make
informed and accurate choices about the company’s commitment to the project;
e to act as a reference document against which the Project Board and Project Manager can
assess progress, change management issues and ongoing viability questions relating to
the work.
This document can only be changed by clarification of Requirements. All changes are subject
to Change Control. Changes are only acceptable to the following sections:-
e =©Project Plan
e End-product Descriptions
*¢ Communications Plan
3 Background
Horizon Online includes functionality which allows staff in branches to adjust stock and also
confirm discrepancies identified during the Stock Unit rollover process.
The functionality is primarily to allow genuine mistakes to be corrected so that the system-held
stock position can be aligned with the physical stock position in a branch
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However, the lack of any system controls on Horizon Online is resulting in stock data being
incorrectly adjusted or manipulated unnecessarily. This results in the stock position being
inaccurate and distorted — and also increases the potential for misuse and fraud.
4 Project Definition
41 Statement of Objectives
This project will introduce the facility to set thresholds at volume and/or value level for stock
items. There will also be standard reasons defined by POL which will be available for selection
for adjustments / discrepancies outside of the set thresholds
Any breaches (positive or negative) of thresholds during Stock Adjustment or Discrepancy
Confirmation of each stock item can therefore be identified by the system which will then force
the clerk to supply a reason.
The objectives of the project are —
e To design, build, test and implement a solution to the requirements defined for Stock
Adjustments
« Provide better and improved control and monitoring of stock adjustments in branches
4.2 Critical Success Factors
The following Critical Success Factors have been identified for the Stock Adjustments project
dial) I ‘Measiires of Success I ]
The Stock Adjustments project To agreed cost, time and quality.
delivery.
Reduction of POL losses MI relating to reasons for adjustments and discrepancies
will enable P&BA to monitor and investigate unusual
patterns of activity in these areas in order to improve
process efficiency
Conformance & compliance [Decrease in volume of inappropriate adjustments
Accurate and timely communications I The changes to Stock Adjustment and Confirm
and training on the amended Stock Discrepancies are easy to understand and easy to
Adjustment and Confirm conduct for the counter staff — and also understood by
Discrepancies functionality contact centres and helpdesks (e.g. NBSC) in order to
provide suitable support and call resolution
4.3 Project Scope
The scope of the Stock Adjustments project includes the following:
e Enforce Reasons for Adjustment for any adjustment or discrepancies which is outside of the
thresholds set
e Availability of the reasons via POL MI / Credence to enable P&BA to monitor changes made
at the counter
e Reference Data changes required to support the implementation of this project
Operational Instructions for the counter, NBSC, etc. (this will ensure that all processes /
procedures / instructions are covered to handle any branch or customer queries)
4.3.1 Management Products
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Initiation
Project Definition Document
(PDD)
To define the project, to form
the basis for its management
and the assessment of overall
success.
Initiation
Business Case
The Business Case documents
the justification for undertaking
the Stock Adjustments project
based on the estimated cost of
development and the
anticipated business benefits to
be gained.
Initiation
Stakeholder Matrix
The Stakeholder Matrix is there
to identify project Stakeholders
and their impact and influence
on the project and the business.
All
Weekly Checkpoint Report
Weekly report input to
Programme to identify and
update Risks & Issues, giving
an Overall Project summary
and Milestone Tracking.
All
DRAID Log
The purpose of the Issues and
Risk Log is to identify each
unique issue and risk and to
summarise status and
progress.
Issues and Risks will be
identified throughout the life of
the project and will be subject
to review on a regular basis.
All
Project Plan
The Project Plan provides a
statement of how and when the
projects objectives will be
achieved, showing the major
products, activities and
resources required on the
project.
All
Communication Plan
To define all parties with an
interest in the project and the
means and frequency of
communication between them
and the project.
The Communications Plan will
comprise:
¢ Details of all interested
parties
e Information required
e — Information provider
« Frequency of
communication
¢ Method of
Communication
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All
Project Quality Plan
The Project Quality Plan
describes how the various
outputs of the project will be
delivered to meet the standards
of the business.
4.3.2 Specialist Products
Requirements
Requirements Catalogue
Not required as will be
managed through Use Cases
(see below)
Design / Specification
High Level Solution Design
Being produced by Fujitsu
Design / Specification
HNG-X Use Cases
These will be documented and
reviewed by POL & Fujitsu -
once agreed, these will be held
and maintained in DOORs
HNG-X Help Text
To be updated and managed
via Operational Support
Build / Test High Level Test Plan To be produced by Joint Test
Team using HNG-X Use Cases.
Build / Test Low Level Test Scripts To be produced by Joint Test
Team using HNG-X Use Cases.
Build / Test Test Rig Specification Joint Test Team / FS
Build / Test Test Rig Joint Test Team / FS
Implementation Implementation and Migration To align with and be included in
Plan
HNG-X Release 2 Programme
plans
POL Operational Manual
Not applicable (see HNG-X
Help Text)
P&BA Duty Instructions
Where applicable, these are to
be produced jointly by P&BA
and Network Team
Service Level Agreements
Not applicable — no change
Operational Level Agreements
Not applicable — no change
4.3.3 Architectural Impact
The implementation of the Stock Adjustments project will impact the business in the following
ways:-
e System behaviour change at the Counter
« The enhanced functionality for Horizon Online will require acceptance testing prior to
implementation
e The Project will be implemented at the counter in the following sequence —
o Model Office
o Rollout to branches
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4.3.3.1 Security Assessment
A Security Impact Assessment has been undertaken by Dave King (Security). This is
embedded below:
a
SIA Stock
Adjustments VOp1.xis
4.4 Project Approach
4.4.1 Project Management Approach
Post Office Limited, using PRINCE2 methodology as appropriate, will manage this project.
4.4.2 Delivery/Development Approach
e Fujitsu Services Limited will provide development and testing support for Horizon Online
e Fujitsu Services Limited will provide test environments for Horizon Online
4.4.3 Operational/Technical Environment
The Stock Adjustments project forms part of the HNG-X Release 2 delivery. Therefore, the
operational and/or technical environment will be as for Horizon Online
4.4.4 Business Acceptance Testing Approach
This will be provided in the POL End to End High Level Test Plan. The High Level Test Plan
will be produced by the Joint Test Team. The low level tests will be documented in ‘Quality
Centre’, (the automated testing tool) which uses the DOORS Use Cases as its source. Testing
progress, defect management and requirements coverage (functional and non-functional) are
all monitored and managed in Quality Centre by the Joint Test Team
4.4.5 Operational Acceptance Testing Approach
This will be provided in the POL End-to End High Level Test Plan (see section 4.4.4).
4.4.6 Training Approach
The following will be arranged to introduce the service:
e Focus articles will be provided for the branch network where deemed necessary
e Horizon Online Help pages will be updated to cover the enhancements to the Stock
Adjustments functionality and processes
4.4.7 User Support Approach
This will be defined as required in the Training and Communications Plans.
This approach will ensure alignment under the Branch Standards banner. Furthermore, to
ensure consistency in approach, the BOEP PMO will convene a series of workshops to
ensure engagement with the appropriate Training & Communications stakeholders to put in
place:
e Awareness of all Release 2 projects / initiatives;
« Awareness of the timelines and delivery approach of all Release 2 projects /
initiatives;
e Agree the training needs and produce a plan to co-ordinate and implement the
required training;
e Agree the communications activities, the target audience and produce a plan to co-
ordinate and issue the required deliverables
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e Agree the resources who will “own” the agreed communications and training
deliverables — plus the resources required to help the “owners” achieve the production
and implementation of the agreed deliverables
4.4.8 Implementation Approach
The new functionality at the counter will be implemented as per the HNG-X Release 2
implementation plan (however, see also section 4.9.1.5 Release Management Approach)
The following is currently the high level implementation approach:
e The enhanced Stock Adjustments functionality will be available initially in the Model
Office.
¢ Successful trial in Model Office will then lead to rollout to the rest of the live estate
A detailed implementation plan will be produced on a Release 2 basis
Milestones: (NB indicative only - dependant on HNG-X Release 2 timescales)
Activity Date
Requirements (Gate 3A) 20/04/2010 (planned — TBC)
Design & Plan (Gate 4) TBC once Release 2 Level 2 plan produced
Build & Test (Gate 5) TBC once Release 2 Level 2 plan produced
Deploy (Gate 6) TBC once Release 2 Level 2 plan produced
Go-live TBC once Release 2 Level 2 plan produced
4.4.9 Decommissioning Approach
Not applicable
4.4.10 Other Approach
4.4.10.1 Contingency Approach
In the event of problems or issues arising which would severely compromise the time, cost
and quality elements for this project, then the functionality would need to be descoped from
HNG-X Release 2. Descoping from Release 2 would mean that the Stock Adjustments
functionality would continue to operate (via Existing Reversals) as per current live
implementation.
Subsequent discussions would then need to take place to determine whether the functionality
is still required — and if so, the actions needed to resolve the problems which would allow it to
be included in a later HNG-X Release.
4.5 Exclusions
Not applicable.
4.6 Assumptions
« Budget is available to fully support the project scope.
e Timescales as defined in the project plan are acceptable and achievable.
e Business as Usual areas will support the project where required (for example, Reference
Data, Testing, etc.)
« The project will close and be handed over to BAU on go live (i.e. current BAU areas /
processes involving support, monitoring and reconciliation will continue for the enhanced
functionality)
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4.7 Constraints
« The project must be sufficiently resourced.
« The Project must be completed in time to meet the HNG-X Release 2 implementation /
rollout window.
« The project must at all times remain financially viable, operating within the agreed budget.
e The suppliers must support the joint test plan.
« Any overlapping impacts from other projects (e.g. testing resource and environments).
4.8 Key Interfaces & Dependencies
4.8.1 Related Projects and Programmes
The Stock Adjustments project will be delivered as part of HNG-X Release 2
4.8.2 Concurrent Interference
Not applicable.
4.8.3 Serial Interference
Not applicable.
4.8.4 Physical, Economic and Environmental Issues
Not applicable.
4.8.5 Legal Compliance
Not applicable — there are no new legal compliance considerations to be taken into account for
this project.
4.9 Project Control
4.9.1 Reporting and Monitoring
The Stock Adjustments project will put in place quality assurance points for all key deliverables.
The Project Manager & the PMO representative will manage these quality assurance reviews.
They will establish the project review processes and guidelines at major milestones. The following
governance structure will be put in place at the onset of the project to monitor project slippages,
major changes in project scope or design, and to provide quality assurance:
Meeting Details
Project Management Regular project meeting comprising Project Sponsor, Project
Manager & Work stream Leaders to monitor progress against
milestones, costs, quality & risks.
Project Board Regular board meetings to monitor progress against business case.
Quality Assurance: Periodic meeting with Project Assurance to monitor project quality.
Weekly Highlight / Checkpoint Reports will be produced
The following governance structure will be put in place at the onset of the project to monitor
project slippages, major changes in project scope or design and to provide quality assurance
reviews.
Project Team Meetings: These meetings will be chaired by the Project Manager at Post Office
Limited and attended by representatives from Post Office Limited, Logica and Fujitsu Services
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Limited. The project sponsor will attend this meeting when available. These meetings will cover
off key actions, updates from each parties, risks, issues and dependencies and a review of the
project plan.
Project Board Members
Title Company Name
Back Office Efficiency Programme Manager & I POL OPS Martin Box
Sponsor — CHAIR
Stock Adjustments Project Manager POL OPS Claire Hurrell
Business Partner — HR & Finance POL C&lS Ann Clarke
Chief Architect POL C&lS Peter Stanley
Project Quality Assurance Principal — Finance POL C&lS Simon Baker
Network Co-ordination Advisor POL Network I Shaun Turner
Finance Analyst POL P&BA Deborah Holmes
Principal Lawyer POL Legal Sarah White
Hugh Flemington
Product Account Manager POL P&BA Matt Hibbard
PMO POL C&lS Tony Baines
Project Team Members
Title Company Tbe
Stock Adjustments Project Manager POL OPS Claire Hurrell
Stock Adjustments Project Business Analyst POL C&lS Ras Chauhan
PMO POL C&lS Tony Baines
Stock Adjustments Testing Manager POL C&lS James Brett
Stock Adjustments Business Change Manager I POL Tbe
Service Delivery representative POL SD Andrew Price
P&BA Finance Analyst POL P&BA Paul Lebeter
Stock Adjustments Solution Architect POL C&lS lan Trundell
Reference Data Systems Manager POL C&lS Matt Warren /
Andy Corbett
Fujitsu HNG Design Authority Fujitsu Gareth Jenkins
Fujitsu Release 2 Programme Manager Fujitsu David Hinde
4.9.1.1 Automated Tools
Microsoft Project will be used to create & maintain the project plan.
For testing purposes, there is no automation tool for this functionality. This is because the
functionality requires appropriate adjustments to be made and discrepancies to be generated
to determine that only appropriate reasons are requested where thresholds are breached.
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4.9.1.2 Risk & Issue Management Approach
Issue & Risk logs will be maintained in line with the Post Office Limited project standard
formats. They will be reviewed weekly at the Project Management Meeting. Escalation of
Issues and Risks will be by Business Assurance / Project Board / Project Sponsor
4.9.1.3 Configuration Management Approach
The configuration of all project documentation sits within the Central Programme Management
Office.
Configuration includes the identification and control of products, the referencing of documents is
based on the Post Office standard stages and all completed documents will sit on the PMO
Configuration Library.
Documents in progress, team meeting notes etc will be stored electronically on the IT Projects
Library Database which is managed by the Central PMO.
The electronic Project File will be regarded as the master and any documents that cannot be held
electronically will be placed in the physical project file.
Configuration Management relating to software (and PINPad firmware where necessary) is
handled by Fujitsu Services Limited as part of their standard contractual obligations.
4.9.1.4 Change Management Approach
A central Change Control process is managed through the Business Change Control Board,
which meets each Monday
All changes will be documented on a change request form and passed to the Programme
Management Office, who will log the changes requested and pass then to the Business Change
Control Board for a decision to be made
4.9.1.5 Release Management Approach
The Stock Adjustments project is to be delivered as part of HNG-X Release 2 which will be
controlled by first deploying to the Model Office (if required and technically feasible), followed
by a full rollout to the network. Where technical feasibility dictates that this is not possible (i.e.
this is only a code drop), then implementation will be via a “big bang” approach.
This will be included as a Risk and managed and monitored via that mechanism
4.9.1.6 Project Quality Assurance Approach
The project manager is responsible for overall assurance; a quality plan will be produced
including lessons learned and knowledge sharing.
4.9.1.7 Financial Management Approach
Financial management will be managed via POL internal finance team. A financial analyst will
be responsible for producing monthly MI reports ensuring the agreed budget within the
business case is adhered to and all costs remain within tolerance. Any cost issues that risk
the project going outside agreed tolerance must be managed via the exceptions process and
raised to the Project Sponsor.
4.9.1.8 Knowledge Management Approach
PSO will distribute the Lessons Learned to identified recipients and enter the details on the
central Lessons Learned log.
At project completion, the Project Manager will produce an End Project Report, which will include
a Lessons Learned Summary, which should be filtered from the central Lessons Learned Log
4.9.1.9 Project Filing Structure
A central ‘team’ drive will be created that can be accessed by all members of the project team.
This drive will include a document baseline directory, which in turn has sub-directories for
documents such as requirements specifications, risks and issues, change requests and plans.
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4.9.1.10 Exception Process
If, as part of the regular planning process, it can be forecast that there will be a deviation
beyond the agreed tolerance levels, the Project Manager will produce an Exception report for
the Project Sponsor, including an analysis and options for the way forward and identifying a
recommended option. The Board will then decide the way ahead and may require the creation
of the Exception Plan.
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