Sales and Inventory System For Claretian Communication Foundation Incorporation, Thesis for System Analysis and Design
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Sales and Inventory System For Claretian Communication Foundation Incorporation, Thesis for System Analysis and Design

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CHAPTER I

SOFTWARE SPECIFICATION

A. FEASIBILITY STUDY

PROJECT BACKGROUND

Claretian Communications Foundation, Inc. is an international publication

of religious books which was established in 1981 and still utilizing the manual

system to record vast amount of book stocks. The majority of books published

are in the categories of Scriptural Books, Seasonal Books, theology, Religious

books and Pastoral Missiological. Each categories of book are holding thousands

of different title making it harder for the employee to record it using the manual

system. Claretian Communication Foundation Inc is practically run by lay people,

with its 42 employees. It is composed of three divisions, each is headed by a

Manager, with their corresponding departments: Administration and Finance,

Marketing and Production. Human resource, accounting, general services, and

systems and information management are under the administration and finance

which is able to provide systematic support in every area of a business without

any interruption in services. This department keeps an effective communication

channel open, so everyone is informed of any new changes and how the

changes may affect the organization. Sales, ads and promotions, and Claretian

bookstore which is under the marketing does the research and strategic

communication planning, while the sales department implements selling-specific

promotional strategies. Under the production there is an editorial and product

development, foreign orders and rights, and logistics which ensures the process

of turning raw materials into products is performed efficiently and accurately.

Claretian Communication Foundation Inc. has a Board of Trustees composed of

members of the Provincial Government of the Claretian Philippine Province. Two

Filipino Claretians are now directly involved in this apostolic work of the province

as Executive Director and Assistant Director, respectively.

The company maintains a small staff of employees as compared to its

growing production. Counting all the stocks manually will cause lengthy time.

The employees and staffs of the company are still using manual system in the

logistics department. Using stock cards, recording the name of the books and

stocks may be prone to errors and may cause of loss of information.

Stock cards were used to locate the specific location of the books. The

staff needs to manually check each rack of books to find its specific titles. With

this process of locating the title of the books, it will need a lot of time to do it. By

using the manual way of computing and storing data, being susceptible to

miscalculation is possible and just by single mistake, repeating the process may

be required.

Developing a Sales and Inventory System with Barcode Scanner for

Claretian Communications Foundation, Inc. would make a mark improvement to

the company and will make the task of employees and staff easier and protected.

This will not only benefit the logistics department but will also benefit other

department of the company because of the precision and accuracy of

calculations within the logistics department. The company’s mission as stated is

“As a claretian pastoral endeavor of the claretian missionaries in the philippines

that brings the word of god to people from all walks of life, we commit ourselves

to promote integral evangelization and renewed spirituality that is geared towards

empowerment and total liberation in response to the needs and challenges of the

church “, and the vision statement as follows “We, the claretian communication

foundation, inc., envision to be the leading religious publisher in Asia and the

pacific.”

TECHNICAL FEASIBILITY

The proposed system consists of 3 computer unit and printer. The printer

is for printing documents and will be deciphered to print a readable stock reports

and sales invoice. Each computer unit is connected to a Local Area Network

(LAN) and connected to a single database for retrieving and sending data from 1

computer unit as a Server. The usage of Sales and inventory system is to record

the sales and stocks that has been released in the warehouse of the company.

The proposed system requires a network hub for connecting the 3 computer unit.

The Windows 7 Professional will be used as an operating system for the

computer and MySQL will used as the database of the system. These hardware

and software will be used for five years to handle or to maintain the computerized

Sales and inventory system. The Uninterrupted Power Supply (UPS) will not be

provided though it is essential; the company will decide for providing the

equipment.

OPERATIONAL FEASIBILITY

The proposed computerized Sales and inventory system enables the

company to control the company’s asset tracking needs and fixed assets.

Printers are known of their quality, proven reliability, ergonomic design, and ease

of use. This kind of Sales and inventory system monitors the products of the

company to gain visibility and control the inventory, stock levels, customer

payment and sales of the products. It also reduces time spent searching for

inventory, eliminate stock outs, and improve customer service. Sales and

inventory levels will now be easy to manage, track, and control. The Claretian

Communication Foundation Inc. has Sales and inventory system which is

manually conducted. Innovation from manual to computerized will greatly benefit

the company.

ECONOMIC FEASIBILITY

The proponents can say that Claretian Communication Foundation Inc. is

economically feasible because for over 35 years of business, Claretian

Communication Foundation Inc. became one of the leading book supply producer

and manufacturer worldwide. The company is willing to upgrade and modernize

its current system. In fact, the company already provided a budget for the said

system. Installing the hardware and software needed for the proposed system

will be possible for the company.

REVIEW OF RELATED LITERATURE

Foreign Literature

Inventory Management may seen complicated to some, but if one truly

thinks about what the word “inventory management” means, it is simple concept.

Inventory basically a list of goods and materials that are held by a business and

are available in stock. Inventory Management is the process of keeping track of

inventory and having the delicate balance of supply and demand firmly mastered.

When having inventory, a company does not ever want to have too much of a

product, nor does it want to have not enough of that product to meet demand.

Inventory Management helps to ensure that a proper inventory is maintained at

all times.(Ronsworth , 2010)

Ensuring the availability of materials and goods is one of the major

responsibilities and goals of inventory management, requiring various techniques

such as mathematical modeling and computational methods. To introduce the

basics of inventory systems and mathematical assumptions for all models are

grouped together, thereafter mathematical principles and applications are treated

as they relate to one another. With this clearly organized systematic exposition

and a unique balance is maintained between simplicity and rigor. (Sapra, 2010)

Inventory management systems do not make decisions directly, but help

employees to make decisions. A good inventory management system would also

provide help in forecasting the demand and supply apart from ensuring that the

confusing paper work is done away with. It makes sure that information about

warehouse and links to suppliers of raw materials as well as customers, retailers

and wholesalers is readily available for use.(Patel, 2010)

An inventory management system can also create a warehouse

management system that makes it easier for shipping personnel to find products.

Product return levels go down, customer satisfaction goes up and the increase in

customer repeat orders due to your excellent order fulfillment service goes up.

(Anderson, 2011)

Foreign Studies

The Sales system challenges facing utilities are manifold, with huge

amounts of payments to accept, data to collect and accounts to manage. In every

transactions made in the cashier terminal it can encounter error of handling

orders and payments.(SICSE , 2010). Sales software is a growing product in the

software market. The calculation aspect of this type of software is well known.

Data entry occurs when the cashier types in the price for each item. Reduce

Transaction Costs, offer alternative, lower cost payment methods for person

transactions and lower your overall processing costs.(Francois, 2010). Fewer

personnel hire for the cashier terminal, less employee because the system will

automatically compute for the customer’s bill. Effective use of time is not

necessarily about bundling more activities into every hour, but about achieving

greater results in that hour because of doing the right thing. This use of time

planning means working a “living” marketing plan that addresses both long and

short term needs.(Kashima, Matsumo & Ishii , 2010)

Sales tracking is actually the process that involves keeping up to date

information about the sales of a company. It stores information about the current

sales of the product, the profits earned and inventory management. It is very

important in sales management as it tells us everything about our sales and our

products. It pinpoints those products whose sales are on the high all time; these

products are then evaluated for their costs and sales. Companies have realized

the importance of keeping track of their sales activities, (Bagoro, Barlis, et al,

2014).

Stock-taking in shops with a lot of items is time consuming. Performing a

store inventory without a system would likely take two employees four days to

complete. Using RFID will save significant time and efforts of each customers

and employees. The biggest benefit of using RFID is in the inventory

management. (Inventory Management in Apparel with Epc/Rfid, Japanese

Company Gains In-Store Efficiency, 2012)

Supply chain management seeks first to integrate all of the internal

activities to supply product to a customer. This system can decrease costs and

improve service by optimizing inventory. Through supply chain partnerships and

information exchange. Sourcing now comes under the supply chain umbrella. We

can see that good supply chain management is partly a matter of balance. This

system would manage all finished goods in inventory and have responsibility for

its distribution. This will perform the forecasting and inventory planning process.

All inventories would be managed more intensively to avoid excess and obsolete

and active inventories would be deployed and re-deployed on the forecast

requirements. (Supply Chain and Inventory Management, 2013)

Local Literature, Studies and Systems

Local Literature

A computer is a device that accepts information in the form of digitalized

data and manipulates it for some result based on a program or sequence of

instructions on how the data is to be processed. Complex computers also include

the means for storing data including the program, which is also a form of data for

some necessary duration. Computerization helps a business by allowing them

manually. It has the ability to synchronize task, bring down error rates. (Ely,

Montojo & Reonico, 2011)

A Transaction Processing System (TPS) is a system that supports the

processing of an organization’s transactions. For many businesses, a transaction

refers to an exchange of goods or services for money. The orders can be filed

whenever a payment has done. For every transaction, a decreased on the stocks

occurs and all the transactions will be recorded. Records can be used in

generating reports such as sales report, inventory report, and list of items in

critical level. (Dela Cruz, Mesina, etal., 2011)

Inventory System is an essential portion of an industry for the reason that

inventories are typically the major expenditures acquired from the business

processes. Most companies will use an inventory management system that will

track and maintain the inventory required to meet the customer demand.

Checking inventories on a precise premise during the time consolidated with a

procedure for consistent change in stock exactness will demonstrate a much

better technique for accomplishing exact inventories. The idea is extremely basic,

in the event that you create just what you require when you require it, then there

is no space for blunder. (Osita, Paragas, etal, 2011)

“Security us one of the best feature of the system; that uses a username

and password to secure the applicant files. The main objective of developing a

system is to keep the confidentiality and the security of the files and data of the

users. In developing a system it is important to improve one’s security measure

for the credibility of the system and most important for the company’s

stability.” (Ocampo & Heras, 2010).

“Database may be local or remote”. Local databases are available only to

one computer or to a local area network of computers that are connected to one

another and share software. Remote databases or also known as on-line

resources are stored on a computer at a different location. (Cates, 2010).

Local Studies

Inventory System is important and needed to be used by the companies in

the industries. This will speed up the filling of records, manpower utilization,

security guidelines, the company will able to track the money, stocks, updates,

changes in the company and other matters that includes managing. Manual

systems are old fashion and has no assurance that the files have a security. The

good inventory system a database recording with security that will take care of

the records, as such a good system will organized and handles the integrity of

the records. (Ely, Montojo&Reonico, 2011).

Inventory maintenance system is divided into separate procedures for

reviewing, receiving, issuing, or inventory on-hand. In this way, the system

supervisor can control which employees can issue stock, order, or adjust

quantities based on stock inventories. Access is controlled through an easy to

use but very effective password authentication system. (Anabeza, Aycardo, et al.,

2010)

Inventory management is primarily about specifying the size and

placement of stocked goods. Inventory management is required at different

locations within a facility or within multiple locations of supply network to protect

the regular and planned course of production against the random disturbance of

running out of materials or goods. The scope of inventory management also

concerns the fine lines between replenishment lead time, carrying costs of

inventory, asset management, inventory forecasting, inventory valuation,

inventory visibility, future inventory, price forecasting, physical inventory, available

physical space for inventory, quality management, replenishment, returns and

defective goods and demand forecasting. (Diesta, Garcia, et al., 2011)

Sales system is a process of sending a bill to customers for goods and

services rendered. It is a system that tracks customer usage of services and

calculates the impact on a customer account based on the price of the services.

A sales system is very useful to the company as it will reflect the income derives

from various services it renders. (Binoman, De Leon, et al, 2011)

Point of Sale (POS) terminal keep track of the goods that it has in stock

and to produce bills for customers. Whenever an item is sold the product code of

the item is read into a till by a barcode scanner. Sometimes the barcode is not

scanned properly. If this happens the till makes a beeping sound and the product

code must be rescanned or entered using a keyboard. Once the product code

has been entered the till looks up the price and name of the product in the

supermarket’s stock database. This information is printed on the customer’s

receipt. It also updates the product’s record in the stock files to indicate that the

product has been sold. (Flores, Garcillan. & Lorzano, 2011)

Synthesis of the Reviewed Literature and Studies

The line stated by much on the chapter II that were conducted are related

to the researchers’ study because these studies are concerned with the Sales

and inventory system of the company. Using this system, it has the advantages

of increasing efficient, time, accuracy, reliability, creativity in analysis, staffing and

reporting management when compared with manual inventory system. Computer

may more rapidly perform assessment than the previous used systems, once the

data has been entered into the system. It was all related in the area of

importance in keeping all the records and files of the company as well as the

acceptance of the company that these files are secured and accessible for the

advancement of the company. It also guarantees that people’s job will be easier,

faster, and more efficient for the benefits of the company.

B. PROJECT PROPOSAL

Introduction

Sales and inventory system plays an extremely important role in the

management system of a company. But, such systems do not often relate

accurate outcomes. As each employees and managers desires to accomplish a

precise sales and inventory system which will calculate, store, record and update

the data that they will gather. The entire procedure includes heavy workload for

the employees keeping in mind that the count of stocks will be exact, correct and

will be equal to the calculations of the other staffs. The advocates of this study

wish to create a system that will efficiently manage the flow of materials,

effectively utilize people and equipment, and produce accurate calculation of

sales with the use of barcode scanner

As such, this paper aims to create a workable Sales and Inventory System

with Barcode Scanner that will address these issues.

Statement of the Problem

1. 4000 titles of books are not in alphabetical order causing to

unorganized monitoring system will cause lengthy time for the

employees when tracking the name of the books.

2. Difficulties in detecting the warehouse location and tracking the

rack’s location of each book will be burden to employees, each

book has a specific location and will be harder for the employees to

track them manually.

3. Inaccurate records due to misunderstanding the employee’s

penmanship will cause massive errors.

4. Duplication and losing of stock card may occur by misplacing it.

5. Need for back-up and recovery for 4000 titles of books. It requires

a back-up and recovery to avoid losing of records once the system

failure occurs.

6. Lack of security access for the records affects the integrity of the

records and may be prone to alteration.

7. Difficulties on handling payment transaction due to vast amount of

orders.

Statement of Objectives

General Objective

The general objective of this study is to develop a Sales & Inventory

System with Barcode Scanner for Claretian Communication Foundation Inc.

Specific Objectives

1. To create a system that will allow the user to search the title of the

books easily and will display the title of the books in alphabetical

order.

2. To create a system that will display the warehouse location and

rack location of the books

3. To create a system that will produce accurate and readable records

for the monitoring of each book.

4. To create a system that will store records and data that is secured.

5. To create a system that can backed-up the records in order to

recover it when the system crashed.

6. To create a system that assigns a separate account for the

administrator, managers and employees with specific limitation and

privileges.

7. To create a system that will view the item’s information and will

have a payment transaction using barcode scanner.

Scope and Delimitations of the Project

Scope

1. The system can add new item, store and update, view the current

stocks of the company and can also generate a list of available

items.

2. The system can view the title, type, category, price, code, ISBN,

weight, size, and location of the book.

3. The system will provide a log-in access for Administrator, Manager

and Employee.

4. The system will record the name of the client who ordered the book.

5. The system can view instantly the total number of books.

6. The system can view and print the stock and return report.

8. The system will have a color indicator if the stocks reach the critical

limit.

9. The system will have a payment transaction using barcode scanner.

Delimitations

1. The System will not focus on recording and storing inventory For

the transaction outside the Philippines

2. The system are not concerned with the inventory of physical assets

like furniture and trucks of the company

3. The system cannot verify if the customer had a balance a pending

transaction to the account department

4. The system can be only used offline.

C. PROJECT DESIGN

SOFTWARE PROCESS MODEL

System Development Life Cycle

Figure 1 System Development Life Cycle (Waterfall Model)

The figure above helped the researchers follow the right stages in

developing a proposed system without wasting time and effort. Each phase

serves as a guide for the developers to follow a guide in developing a system. It

ensure that every process is not left out to make sure that the system runs at the

best stages.

Planning

The proponents establish a preparation for the proposed system that

should develop. The proponents sought for all the ideas that may help upon

conducting the study.

Gathering Information

The proponents used different tools and methods in collecting information

that is relevant and may contribute to the development of the study. This stage

also gave the proponents ideas on the things they should consider upon

developing the system.

System Design

The proponents will took data and information needed in designing the

user-interface. After analysis the proponents will not proceed on the design and if

it fails to satisfy all the requirements. The proponents will have to go back to the

analysis.

Development

This stage is the phase in which the system was actually constructed. The

application of the previous stages was carefully laid in this stage make the

system completely running.

Testing

After designing and coding, the system now needs to be tested and if

there will be an errors or efficiency in some process, the proponent will be

needing to check the design again if there are problems, then the system will be

debugged again and will be ready for evaluation and acceptance.

Evaluation

This phase is necessary for the proponents to know if the system will work

properly, the proponents will be presenting an Inventory System to the users to

evaluate the ratings of the proposed system.

SYSTEM ARCHITECTURE (DFD)

Database Specification (ERD)

GUI SPECIFICATION

Activity Diagram

CHAPTER II

DEVELOPMENT

A. Platform Information

The development of sales and inventory system uses different programming

language in every part of the system. In creating the front-end, proponents used

visual studio and a programming language of Visual Basic, this includes

designing of buttons and user validation. For the back-end, the proponents used

MySql for connecting the front-end and the back-end. Images that has been used

in the system are made in Adobe Photoshop and other pictures are from the

company.

B. Hardware and Software Requirements

Hardware

Quantity Particular Price Total Price

3 Intel Core i3 (PC

Set)

25,000.00 75,000.00

1 DLink DES 1008 8-

port (Network HUB)

850.00 850.00

5 Kebos PowerGrade

– As (UPS/AVR)

2,800.00 14,000.00

3 Canon Pixma MP237

Multi Function Printer

4,200.00 12,600.00

102,450.00

Software

Quantity Particular Price Total Price

3 Windows 7

Professional

734.00 2,202.00

1 MySQL 0 0

1 Xampp 0 0

1 Microsoft Visual

Studio 2012

22,000.00 22,000.00

24,402.00

C. Program Flowchart

FLOW CHART 1.0

CASHIER

FLOW CHART 2.0

PRODUCTION

FLOW CHART 3.0

MANAGER

FLOW CHART 4.0

ADMIN

FLOW CHART 4.1

ADMIN

FLOW CHART 4.2

ADMIN

CHAPTER III

VALIDATION

A. Testing Plan

Design Verification or Compliance Test

Proponents test the system during the development or approval stages of

each module based on the appropriate design that is needed by the company.

Manufacturing or Production Test

Proponents may perform production test during the preparation or

assembly of the system in an ongoing manner for purposes of performance

verification and quality control.

Acceptance or Commissioning Test

Proponents perform acceptance test at the time of the installation of the

system based on the system requirements that needs to be met by a certain

working station.

Service and Repair Test

Proponents performed this test as required over the service life of the

system, this may include fixing of bugs and retrieving data over a system failure.

CHECKLIST

Module Log-in and Log-out / User Registration / Book Information and Cart

/

Stock Inventory / Book Category / Book Registration / Search / Add Item / Invoice / Sales Report /

CHAPTER IV

EVOLUTION

A. Project Recommendation

Based on the study conducted, from gathering data and the following

justifications were drawn. The problems encountered by the respondents under

the manual system were prone to errors and does not acquire accurate

information needed. It needs more employees to do the inventory because it is

manual. It required to double check the calculation to avoid inaccuracy and

miscalculation of the produce books due to manual counting. Have a slow data

processing in handling orders due to the use of pens and papers as a manual

system. Have a weak monitoring system for 4000 titles of books and experience

uneasiness in detecting the location of each title. Misunderstanding of the

employee’s penmanship assign to handle the orders, sales invoice, stock card. It

causes inaccurate records. Often Duplication and losing of stock card cause by

misplacing it. The records can’t be backup and recovered. Lack of security

access for the system. In delivery, the books are prone to damage because the

sizes of it are not proportion to its packaging box. The existing manual system of

Claretian Communication Foundations Inc. must be replaced with the proposed

system. The proposed system should be implemented. It is also recommended

for the company to use a computer system with a proposed system to become

more efficient, secure and accurate in all the records that will be processed. The

proposed system had satisfied all the problems involved in the manual system,

therefore, the proposed system was found to be accessible, accurate,

maintainable, reliable and secured.

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