1. Vault Repopulation Project Catherine Wilson University of San Diego July 14, 2005

2. MSIT 573 IT Project Management C.Wilson July 2005 Table of Contents  Introduction  Project Plan and Schedule  Return on Investment  Risk Management and Communication Plans

3. Introduction

4. MSIT 573 IT Project Management C.Wilson July 2005 Introduction Company Background  MBNA came into existence in 1982 as a spin off of Maryland Bank to take advantage of Delaware’s lenient usury laws.  MBNA Europe launched in September 1997 in Chester, England.

5. MSIT 573 IT Project Management C.Wilson July 2005 Introduction Project Background  MBNA Europe has experienced high transaction fraud due to merchants completing transactions in offline mode.  Most merchant processors complete transactions in offline mode to avoid the long distance charge required to contact VISA and MasterCard.

6. MSIT 573 IT Project Management C.Wilson July 2005 Introduction Project Background  As a result of the ever increasing fraud losses and merchants refusal to go online for transactions, VISA and MasterCard developed new technology which will eventually allow issuers to decide whether a particular card must go online for authorization.

7. MSIT 573 IT Project Management C.Wilson July 2005 Introduction Project Background  This new technology is call CHIP card and includes inserting a small computer chip to the front of a plastic.  The computer chip can then hold a series of applications which are automatically initiated when the CHIP card is inserted into a merchant terminal.

8. MSIT 573 IT Project Management C.Wilson July 2005 Introduction Project Background  The CHIP has been developed to hold various applications including processing information (for use during processing transactions), bonus points accrual and immediate deduction, and behavioral capturing (individual item capture).

9. MSIT 573 IT Project Management C.Wilson July 2005 Introduction Project Background  This presentation focuses on the CHIP sub-project which replaced the current vault with new CHIPped cards.  The MBNA Europe is housed at Gemplus, a card production and personalization vendor in Havant, England.

10. MSIT 573 IT Project Management C.Wilson July 2005 Introduction Project Parameters  VISA and MasterCard mandated the installation of CHIP card in 2002 in various stages.  Members (both merchants and issuers) will begin to suffer from the liability shift in January 2006.

11. MSIT 573 IT Project Management C.Wilson July 2005 Introduction The Liability Shift  States that if either the merchant or the issuer is not CHIP compliant, the one that is not compliant will automatically take on the chargeback liability.  As a result, everyone is trying to get compliant before the shift in 2006. In addition, fines begin to be imposed in October 2005 for not being compliant.

12. MSIT 573 IT Project Management C.Wilson July 2005 Introduction CHIP Card Project at MBNA  MBNA kicked off their CHIP card project in 2003, and spend two and a half years developing the platform and applications they wanted for their CHIP.  They also developed a proprietary CHIP with their vendor, Gemplus.

13. MSIT 573 IT Project Management C.Wilson July 2005 Introduction CHIP Card Project at MBNA  The system can now process incoming CHIP data and a number of special CHIPped cards were produced for parallel testing, now MBNA is preparing to convert all cards to the new platform, by issuing all customers CHIPped plastics.

14. MSIT 573 IT Project Management C.Wilson July 2005 Introduction Project Team Overview  Program Manager  Project Manager  2 FTE Plastics Analysts  1 FTE Marketing Plastics Analysts  ESOC Member (European Senior Operating Committee)

15. Project Plan and Schedule

16. MSIT 573 IT Project Management C.Wilson July 2005 Project Objectives  Develop and document new processes and procedures to ensure production capacity can be met.  Analyze all existing designs for CHIP compatibility.  Mill and embed cards for all card types  Walkthrough all updated processes with executive management and vendor

17. MSIT 573 IT Project Management C.Wilson July 2005 Project Plan and Schedule  Project will be completed in 5 major phases, with some phase overlap.  Generation of Kickoff Materials/Scope Definition Phase  Project Requirements Phase  Main Project Build/Acquisition Phase  Implementation Phase  Documentation and Closout Phase

18. MSIT 573 IT Project Management C.Wilson July 2005 WBS Schedule Generation of Kick Off Materials 7/14/05 – 7/20/05 Project Requirements Phase 7/19/05 – 8/12/05 Project Build Phase 7/20/05 – 12/15/05

19. MSIT 573 IT Project Management C.Wilson July 2005 WBS Schedule Implementation Phase 11/30/05 – 12/31/05 Project Closure 1/2/06 – 1/10/05

20. MSIT 573 IT Project Management C.Wilson July 2005 Project Deliverables  Analysis of 700 plastic designs  Determination of cards to be M&Eed immediately  Determination of cards which require re- work to be compliant  Order and production of new plastics  M&E of newly designed plastics

21. MSIT 573 IT Project Management C.Wilson July 2005 Project Deliverables  Update of the vault inventory control system with new plastics  Performance of an executive show me exercise  Development and publication of a new plastic procedure manual  Development of a new plastic order form

22. MSIT 573 IT Project Management C.Wilson July 2005 Project Deliverables  Project Lifecycle document  Project Plan  Plastics Status Tracking report (Updated Weekly)  Executive Info Pack  Training Schedule and Training Materials

23. MSIT 573 IT Project Management C.Wilson July 2005 Project Deliverables  Embossing test

24. Return on Investment

25. MSIT 573 IT Project Management C.Wilson July 2005 Expected Benefits  The benefits associated with this project have already been calculated to offset the CHIP development, and as such cannot be used for the calculation of ROI for the vault repopulation.  As a result the revenue associated to this project is 0.

26. MSIT 573 IT Project Management C.Wilson July 2005 Expected Costs

27. MSIT 573 IT Project Management C.Wilson July 2005 ROI  ROI for this project is 0%, clearly unfavorable, however, due to the mandated nature of this project it will proceed even though it does not meet the payback timelines or minimum ROI requirements.

28. Risk Management and Communications Plans

29. MSIT 573 IT Project Management C.Wilson July 2005 Risk Management  Risk management will be assessed throughout the project by using the risk register method.  The Risk Register will be updated and distributed to the following parties : Gemplus, Marketing, Sales, Advertising, Corporate Operations and Fulfillment, PMO, and Management

30. MSIT 573 IT Project Management C.Wilson July 2005 Risk Register

31. MSIT 573 IT Project Management C.Wilson July 2005 Communication Plan  The Communication Plan includes a series of one-off and recurring meetings to ensure all elements of the project remain on track during the project lifecycle.

32. MSIT 573 IT Project Management C.Wilson July 2005 Required Meetings  One-Off Meetings  Project Kickoff with Vendor  Project Kickoff with Education Coordinator  Recurring Meetings  Internal Status Meeting  Vendor Status Meeting  Senior Management Update

33. MSIT 573 IT Project Management C.Wilson July 2005 Recurring Meetings  Internal Status  Weekly  Attendees : Program Manager, Project Manager, Marketing FTE, Plastics Analysts FTE  Standard Agenda :  Newly Signed Groups  Plastic Production Schedule/Status  Plastic Shipment Schedule

34. MSIT 573 IT Project Management C.Wilson July 2005 Recurring Meetings  Vendor Status  Weekly  Attendees : Program Manager, Project Manager, Gemplus Project Manager  Standard Agenda :  M&E release schedule/status  Plastic Production Schedule/Status  Plastic Shipment Schedule  Card Destruction Schedule

35. MSIT 573 IT Project Management C.Wilson July 2005 Recurring Meetings  Senior Management Status  Monthly  Attendees : Program Manager, Project Manager, Senior Management  Standard Agenda :  M&E release Schedule/status  Plastic Production Schedule/Status  Plastic Shipment Schedule  Education Schedule  Card Destruction Schedule