tl!e assumption

Tl!E ASSUMPTION

Inventory Control System of Air Moving Equipment Manufacturing Industry Matsushita Seiko (THAILAND) Co., Ltd.

by Mr. Surachai Withunthong

A Final Report of the Six-Credit Course CS 6998 CS 6999 System Development Project

Submitted in Paiiial Fulfillment of the Requirements for the Degree of

Master of Science in Computer Information Systems

Assumption University

March 2008

Project Title

Name

Project Advisor

Academic Year

Inventory Control System of Air Moving Equipment Manufacturing Industry Matsushita Seiko (THAILADN) Co., Ltd.

Mr. Surachai Withunthong

Assoc.Prof.Dr.Ouen Pin-ngern

March 2008

The Graduate School of Assumption University has approved this final report of the three-credit course, CS 6998 System Development Project, submitted in partial fulfillment of the requirements for the degree of Master of Science in Computer Information Systems.

Approval Committee:

(Assoc.Prof.Dr. Ouen Pin-ngern) Advisor

Program Coordinator

(Prof.Dr. Srisakdi Charmonman) Chairman

(Assoc.Prof. Somchai Thayarnyong) CHE Representative

March 2008

ABSTRACT

Matsushita Seiko Co., Ltd. provides three kinds of products to serve Thai market

under the named of "Panasonic and KDK". The products are Electric Fan, Ventilating

Fan and Air Moving Equipment (AME). This project focuses on Inventory System of

Air Moving Equipment product. The reasons are that other two products already have

the system from Japan to support the raw material system, and AME products still use a

manual system with some computerization such as MS. Excel to keep the data

inventory. The project tries to set up the system that is appropriate with the products.

The current existing system is based on manual and some computerized system.

The problems come from the slowly ordered raw material, cutting the stock of raw

material, and human error by wrong calculation. There are many paper works that is

very hard to update the information, including poor management report making

decisions making by management level.

The new proposed system will be developed to support the inventory management

system in order to support both production and purchasing department to rapidly know

the information in AME inventory. The system will reduce time consumption on raw

material shortage, and increase efficiency to plan and keep the stock in the near future.

The project designed is useful to purchasing staff and management level of purchasing

and production section because the system can manage the routine jobs is easy to use

and support making decisions in their level of management.

The proposed system is found to help improve the current operations, and solve

the problems occurring in the existing system. The operating cost is also reduced

because of less number of purchasing staffs required.

ACKNOWLEDGEMENTS

There are many people who have made contributions to this project. The writer

would like to acknowledge their efforts and thank them for their contributions.

I would like to thank Assoc. Prof. Dr. Ouen Pin-Ngern, for his assistance, and

valuable suggestions in preparing and developing this project. I would like to thank all

my lecturers in MS(CIS) course for the knowledge used in developing this project.

I extend my sincere thanks to production and purchasing staffs of Matsushita

Seiko Co., Ltd. (New company name is Panasonic Ecology Systems (Thailand) Co.,

Ltd.) for their timely assistance, valuable explanations and information provided to me

while carrying out data collection required for my project.

11

THE ASSUMPTION UNIVERSITY LllUU,'Q1:'

TABLE OF CONTENTS

Chapter Page

ABSTRACT

ACKNOWLEDGEMENTS 11

LIST OF FIGURES v

LIST OF TABLES Vlll

I. INTRODUCTION 1

1.1 Background of the Project 1

1.2 Objectives of the Project 1

1.3 Scope of the Project 2

1.4 Deliverables 3

1.5 Project Plan 4

II. THE EXISTING SYSTEM 6

2.1 Background of the Organization 6

2.2 Current Problems and Areas for Improvement 8

III. THE PROPOSED SYSTEM 11

3.1 System Specification 11

3.2 System Analysis 13

3.3 System Design 16

3.4 Hardware and Software Requirement 22

3.5 Security and Control 27

3.6 Cost and Benefit Analysis 29

lll

Chapter

IV. PROJECT IMPLEMENTATION

4.1 Overview of Project Implementation

4.2 Stages of Project Implementation

4.3 Conversion

4.4 Training and Documentation

V. CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions

5 .2 Recommendations

APPENDIX A ENTITY RELATIONSHIP DIAGRAM

APPENDIX B DATA FLOW DIAGRAM (THE PROPOSED SYSTEM)

APPENDIX c DATABASE DESIGN

APPENDIX D DATA DICTIONARY

APPENDIX E USER INTERFACE DESIGN

APPENDIX F REPORT DESIGN

APPENDIX G FEASIBILITY ANALYSIS

BIBLIOGRAPHY

IV

Page

40

40

40

42

42

44

44

47

48

52

64

70

73

84

91

101

THE ASSUMPTION

LIST OF FIGURES

Figure Page

1.1 Project Plan of Inventory Management System 5

2.1 Organization Chart of Matsushita Seiko (THAILAND) Co., Ltd. 7

2.2 Data Flow Diagram of the Existing Inventory System 10

3.1 Data Flow Diagram of the Proposed Inventory System 14

3.2 Data Flow Diagram Level 0 of the Proposed System 15

3.3 The Hardware Configuration of Proposed System 26

3.4 Break-Even Chart 36

3.5 Payback Chart 38

A.l Context Entity Relationship Diagram of

Matsushita Seiko (THAILAND) Co., Ltd. 49

A.2 Key Based Entity Relationship Diagram of Matsushita

Seiko (THAILAND) Co., Ltd. 50

A.3 Fully Attributed Entity Relationship Diagram of Matsushita Seiko

(THAILAND) Co., Ltd. 51

B.1 Functional Decomposition Diagram of the Proposed Inventory System 53

B.2 Context Data Flow Diagram of the Proposed System 54

B.3 Data Flow Diagram Level 1 Process 1 Customer Information 55

B.4 Data Flow Diagram Level 1 Process 2 Supplier Information 56

B.5 Data Flow Diagram Level 1 Process 3 Prepare Purchase Order 57

B.6 Data Flow Diagram Level 1 Process 4 Process Finished Goods 58

B.7 Data Flow Diagram Level 1 Process 5 Check Inventory 59

B.8 Data Flow Diagram Level 1 Process 6 Receive Material 60

v

B.9 Data Flow Diagram Level 1 Process 7 Generate Report 61

B.10 Data Flow Diagram Level 2 Process 1.3 Apply New Customer 62

B.11 Data Flow Diagram Level 2 Process 2.3 Apply New Supplier 63

E.l Login Screen 74

E.2 Main Menu Form 75

E.3 Customer Form 76

E.4 Supplier Form 77

E.5 Purchase Order Form 78

E.6 Product Form 79

E.7 Material Form 80

E.8 Material Out Form 81

E.9 Supplier Delivery Form 82

E.10 Daily Production Form 83

F.1 Customer List Report 85

F.2 Supplier List Report 86

F.3 Purchase Order Report 87

F.4 Purchase Material List Report 88

F.5 Daily Production List Report 89

F.6 Material List Report 90

Vl

LIST OF TABLES

3 .1 Candidate Systems Matrix 18

3.2 Feasibility Analysis Matrix 21

3.3 The Hardware Specification for Server 23

3 .4 The Hardware Specification for Each Client 24

3.5 The Software Specification for Each Client 24

3.6 The Software Specification for Server 25

3.7 Existing Manual System Cost Analysis 30

3.8 Five Years Accumulated Existing Manual System Cost 30

3.9 Proposed System Cost Analysis 32

3.10 Five Years Accumulated Proposed System Cost 33

3.11 The Comparison of the System Costs between Proposed System and Existing System 33

3 .12 The Comparison of the Accumulated Cost Invested for the Proposed System and Accumulated Benefit from the Proposed System 37

5.1 The Degree of Achievement between the Existing System and the Proposed System 45

C.l Customer 65

C.2 Supplier 66

C.3 Purchase Order 67

C.4 Purchase Material 68

C.5 Supplier Delivery 68

C.6 Material 68

C.7 Material Detail 69

C.8 Material Out 69

Vil

Table Page

C.9 Material Out Detail 69

D.l Data Dictionary of Inventory System 71

G.l Estimated Cost of Candidate 1 92

G.2 Estimated Cost of Candidate 2 93

G.3 Estimated Cost of Candidate 3 94

G.4 The Benefit of the Proposed System 95

G.5 The Benefit of the Proposed System (Year 1-5) 96

G.6 Payback Period for Candidate 1 97



G.9 Net Present Value for Candidate 1 99



Vlll

I. INTRODUCTION

1.1 Background of the Project

The project is required for MS (CIS) program (CS6998-CS6999), System

Development Project, the study of the existing system and developing the appropriate

system for each company case. This project will design the inventory management

system which manages the quantity of material in and out of stock. There are many

criteria such as business size, total sales, material models, price, etc. which are

considered in this project.

Commonly a good system of inventory management system should run the

process smoothly, reduce human error and time consumption. In addition, the system

should monitor the raw material and places purchasing order to each supplier

automatically.

Matsushita Seiko (Thailand) Co., Ltd. faced the problems in inventory

management system especially in Air Moving Equipment products. Thus, the company

needs an effective computerized system to facilitate the process of inventory system.

1.2 Objectives of the Project

According to the company policy is for serving customer satisfaction. The shortest

lead-time to deliver the products is necessary. Inventory should be efficient to manage

inventory control. So, the company plans to develop a computerized inventory

management system that can share and manage inventory information. The new system

will eliminate the existing problems and increase the efficiency of the company.

1

The entire objectives of the project could be identified as follows:

(1) To study inventory information system of Air Moving Equipment products

and identify the current problems and opportunities.

(2) To design and develop the computerized inventory management system.

(3) To develop an online information system between production information

and inventory management system.

(4) To reduce the recording, processing, calculating time and paper costs for all

reports that can help improve the efficiency and effectiveness of the

workflow and shorten the working process.

(5) To develop the new inventory control management system that eliminates

the problems of having excess and shortage of inventory.

(6) To provide top management with timely, meaningful, and reliable

information and reports that can support the management planning,

controlling and of making decisions.

1.3 Scope of the Project

The solution for this project is to develop a computerized Inventory Control

Management System. It consists of the following:

(1) Create and mange the supplier database system that can record material

name, code, quantity, price and financial transfer status.

(2) Create and manage the customer database system that can record the

customer name, address, product name, code, quantity and price.

(3) Manage the inventory database system that can record both incoming and

outgoing parts and calculate the quantity remaining inventory.

2

(4) Create the inventory control function that can show the staff when the

material and parts are out of stock or lower than the inventory standard.

(5) Develop the system that can print purchasing order includes calculate the

quantity and price of material automatically.

( 6) Develop the system that is able to generate the summary report such as sales

report and inventory rep01i. These are the monthly reports for supporting the

management level in planning, controlling and decision making.

1.4 Deliverables

(1) The input screens

Users Login

Main Menu Form

Customer Form

Supplier Form

Purchase Order Form

Product Form

Material Form

Material Out Form

Supplier Delivery Form

Daily Production Form

(2) The reports

Customer List Report

Supplier List Report

Purchasing Order List Report

Purchasing Material List Report

3

Daily Production List Report

Material List Report

1.5 Project Plan

A project plan of the manufacturing inventory management system is shown in

Figure 1.1.

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II. THE EXISTING SYSTEM

2.1 Background of the Organization

Matsushita Seiko (THAILAND) Co., Ltd. is an air-moving product manufacturing

company which produced three kinds of products. There are Electric Fan, Ventilating

Fan and Air Moving Equipment. It was newly established in December 1996. However,

counting from the National Thai Co., Ltd. (NTC) period, it has been producing electric

fans under the name of National and KDK for about 33 years. Its plant is located on

Bangna-Trad Road (Km 27), Sumutprakarm, Thailand. Today, the company has

become one of the leading ventilating fans and air moving equipment manufacturers in

Thailand. The target is to expand the export businesses to other parts of the world and in

the 21st century ahead.

Based on Matsushita Group's fundamental business philosophy, the company

always takes the customer as the top priority and makes people's lives happier.

The organization chart is shown in Figure 2.1.

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2.2 Current Problems and Area for Improvement

In the existing system, Sales and Inventory of electric fan manufacturing industry

keeps the sales and inventory information in a standalone PC. So the information cannot

be shared with others. The new order information and material information are not

updated properly in a correct and timely manner so the data is out-of-date. In addition,

the existing system provides the sales record and inventory movement that are

insufficient and not useful for the top management and other related departments (e.g.

Production Department) to manage their planning, controlling and decision-making. It

lacks other information such as delivery schedule, inventory standard (both finished

goods and raw material), type of customers and suppliers.

The problems of existing system can be categorized as follows:

(1) Problem of Excesses and Shortages of raw material in the inventory

As the Inventory Control System is not efficient enough, the staffs have to

record and check the raw material remaining many times a month. They do

not know the exact quantity of each part. Problem of shortages occurred of

required material and excesses of unnecessary material in the inventor

(2) Problem of difficulty in finding required information

Because the company keeps all information in the paper files and standalone

PC, it takes time to search and process all information such as quantity of

material, order of the products, material schedule and delivery schedule.

(3) Problem of high risk of errors in recording and calculating

It has many human errors that occur during recording and calculating all

information such as quantity of customer order, material quantity, code of

material and price. It is very difficult to find and fix the errors.

8

( 4) Problem of low performance of database management system

Reduction of work performance due to time much consuming in recording

and searching inventory information. All information are recorded and

calculated manually which is very inconvenient, inefficient, time consuming,

waste of office resources and contains many human errors. Therefore, it

leads to ineffective work and low quality services.

( 5) Lack of data sharing and storage space

The existing system cannot share information with other departments so the

operational level of the company takes more time in answering queries. The

top management and other departments waste time in preparing necessary

information for planning, controlling and decision making.

9

Purchase Order Invoice CUSTOMER SUPPLIER

Payment i i Raw material and Parts ,, ,, A ~ i i •

Products 0 Purchase Order

Invoice Inventory

Payment Confirmation

Management System

Production Information ~ ,~

Products Requirment PRODUCTION . .

Figure 2.2 Context Data Flow Diagram of Existing Inventory Control System

10

THE ASSUMPTION

3343 III. THE PROPOSED SYSTEM

3.1 System Specification

The system specification is to define a description and functionality of the new

system. It contains an explanation, user requirement, and the flow of data in order to

assemble an overall picture of the system to meet the current and future needs of the

company. After analyzing the existing system, including collected data and interviewing

the relevant users, we can classify the new system specification into three categories:

inputs, outputs, file and database.

3.1.1 Input Requirements

(a) Input fmm should contain all required data.

(b) Input form should generate the current data from database automatically such

as user input the product code. All required details should appear on the input

form immediately. It reduces time consumption and increases accuracy of data.

(c) Input form should define the range of values in each field. To predefine the

range of value that can check the accuracy of data that may come from human

error.

( d) Input form should show any guide or help screen when user does any mistakes.

This feature helps new or non-regular user to input the correct data and reduce the

human en-or in the system.

3.1.2 Output Requirements

(a) Daily Basis, the system should show Daily Production Report that informs the

total of daily production separated by models including defected products and work

in process of each model.

11

Daily Material Report show the quantity of each material part which is added in the

stock and out from stock to the production line including defected parts from

suppliers and production line.

(b) Monthly basis, the system should show Monthly Production Report that informs

the actual production of the current month including defected products, outstanding

production and additional production.

Monthly Material Report shows the movement of material parts that purchased

from suppliers and sent to production line including the total of defected parts from

suppliers and production line.

Monthly Purchase Material Order Report shows list of material order in each pmi

and summarize in terms of quantity and value basis.

( c) The system should update and display the report on screen before printing by

authorized users. The accurate report will help the management level in decision

making.

3.1.3 File and Database Requirements

(a) The system should separately record the basic information into the system such

as product information, customer information, supplier information, material parts

information, and purchase order information.

(b) The system should allow access of information by using code or names such as

product code or product name, material code or material name, purchase order

number, supplier code or supplier name, customer code or customer ID.

3.2 System Analysis

3 .2.1 Data Modeling

Data modeling are structuring and organizing data. In addition, this modeling is a

technique to define and will implicitly and explicitly constraint or limit on the data

12

placed within the structure. The popular and simplest logical technique is called an

Entity Relationship Diagram (ERD).

There are three data model of Entity Relationship Diagram (ERD), The Context

Entity Relationship Diagram, Key Based Entity Relationship Diagram and Fully

Attributed Entity Relationship Diagram. The complete entity relationship diagram of the

proposed system is shown in Appendix A.

3 .2.2 Process Modeling

Process Modeling is a technique for organizing and documenting the structure and

flow of data through a system's processed and/or logic, policies, and procedures to be

implemented by a system's process. Then, the Data Flow Diagram is a tool that depicts

the flow of data through a system and the works or processing performed by the system.

The proposed system is developed by the tool of Context Data Flow Diagram as shown

in the figure 3.1.

The system may be too difficult to understanding. The functional decomposition

diagram is created to show hierarchy chart that shows the top-down functional

decomposition and structure of a system. The Functional Decomposition Diagram of the

Proposed System is shown in Appendix B.

13


Payment Raw material and Parts , . ,,. ' ·~ i i A

Products 0 Purchase Order

Invoice Inventory


Management System

Products " . ,~

Purchase Information ~

Material Information Production information

Finished Goods

Defect Goods

PURCHASING Dept. ~ Products Requirment PRODUCTION

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Figure 3 .1 Context Data Flow Diagram of the Proposed System

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3.3 System Design

3 .3 .1 Candidate Solution Analysis

The business requirements are defined in previous section. The candidate solution

can be set up from requirements and opinions of developer and user. Then, the three

candidate solutions can be established for the proposed system as shown in the

following.

(1) Candidate 1: MS Visual Basic 6.0 and MS Access 2003

MS Visual Basic 6.0 is used for application development, because of

its rapid application development (RAD) environment. With its visual style,

it makes application development easier. For network architecture, the file

server is used in this candidate to store the database, and the Client PC

executes all database instructions. This means that the entire database and

tables may have to be transported to and from the client across the network.

The database software, MS Access 2003 is selected.

(2) Candidate 2: Oracle Developer 2000 and Personal Oracle 8.0

Oracle Developer 2000 is the development tool in this solution, while

DBMS is Personal Oracle 8.0. This solution supports the multi-user

environment and relational database technology. Database Server is used to

follow the concept of two-tier Client/Server Computing. However, it is

difficult to use and implement.

(3) Candidate 3: MS Access 2003

MS Access 2003 can manage the data which uses data stored in

relational systems which many business transactions use the format in the

present time, including the inventory management system that responds to

any requests from PC Clients.

16

After alternatives are identified, each candidate solution needs to be analyzed in

more detail. Candidate systems matrix is used to describe the characteristics of each

alternative as shown in Table 3.1.

17

Table 3.1. Candidate Systems Matrix.

Characteristics Candidate 1 Candidate 2 Candidate 3

Portion of System Computerized

Brief description of that portion of the Fully supports all relevant Fully supports all relevant Fully supports all relevant system that would be computerized in units that are involved in units that are involved in units that are involved in this candidate. reservation process. reservation process. reservation process.

Benefits

Brief description of the business This solution can be Powerful DBMS and Application development benefits that would be realized for this implemented easily with application that perform and Implementation is candidate. fast learning time. tasks more efficiently and easy with fast learning

effectively. time.

Servers and Workstations

A description of the servers and Pentium Core 2 Duo, Ms. Same as candidate 1 Same as candidate 1 workstations needed to support this Windows 2003 Servers, candidate. and MS Windows XP.

Software Tools Needed

Software tools needed to design and MS Visual Basic 6 Developer 2000 Microsoft Office 2003 build the candidate (e.g. database Microsoft Access 2003 Personal Oracle 8.0 Microsoft Access 2003 management system, emulators, operating systems, languages, etc.). Not generally applicable if applications software packages are to be purchased.

Application Software

A description of the software to be Custom Solution Same as candidate 1 Same as candidate 1 purchased, built, accessed, or some combination of these techniques.

Method of Data Processing

Generally some combination of: on- Database stored on server Oracle uses a two-tier Database stored and line, batch, deferred batch, remote and processed on Client/Server architecture process on Server and batch, and real-time. workstation. with a powerful database GUI on workstation.

server.

Output Devices and Implications

A description of output devices that Display Monitor Same as candidate 1 Same as candidate 1 would be used, special output HP laser printer requirements (e.g., network, preprinted

Epson Dot Matrix Printer forms, etc.), and output considerations (e.g., timing constraints).

Input Devices and Implications

A description of input methods to be Keyboard and mouse Same as candidate 1 Same as candidate 1 used input devices (e.g., keyboard, mouse, etc.), special input requirements (e.g., new or revised forms from which data would be input), and input considerations (e.g., timing of actual inputs).

Storage Devices and Implications

Brief description of what data would be File Server with 160 GB Oracle DBMS with 160 Same as candidate I stored, what data would be accessed storage capacity. GB storage capacity. from existing stores, what storage media would be used, how much storage capacity would be needed, and how data would be organized.

18

3.3.2 Feasibility Analysis

After the candidate solutions are identified, the feasibility analysis can be done for

each candidate. The following feasibility criteria should be taking into consideration

when the development team wants to select the best solution to implement the

production environment.

(1) Operational feasibility

It is a measure of the candidate solution that fulfills the user's

requirements and to what degree. It is also a measure of how people feel

about the system. All candidates fully support the current business process

but candidate 3 is the most feasible because it can be implemented very

quickly without additional software installation and hardware upgrades.

(2) Technical feasibility

It is a measure of the solutions technical practicality and the

availability of technical resources and expertise. Candidate 2 is the most

difficult to implement. Although the other two solutions are slightly

different in technical implementation, they are still easier than candidate 2.

(3) Economic feasibility

It is a measure of the cost-effectiveness of a project. In order to

determine the economic feasibility, cost benefit analysis techniques are

applied. Candidate 3 is the most economical as it consumes the smallest

amount of investment with shortest payback period, while candidate 2 takes

the largest investment among all candidate solutions because it requires a

database specialist and a powerful hardware to implement and maintain.

19

( 4) Schedule feasibility

It is a measure of the solution that can be designed and implemented

within an acceptable period. Candidate 3 takes the least time to develop and

implement. Candidate 1 spends slightly more time than Candidate 3 does

but it is also a quickly implemented solution. Conversely, Candidate 2

consumes the most time to design and implement the proposed system

because the oracle product is very complicated and difficult to learn without

any technical assistance from Oracle Company.

Once all four feasibility criteria assessments are provided for each candidate

solutions, the feasibility analysis result reveals that Candidate 3 has the highest total

score, and ranks the best solution, so this candidate is the most suitable alternative for

the proposed system, because it takes the lowest development time and cost with

acceptable perfonnances. The completed Feasibility Analysis Matrix is shown in Table

3.2.

20

Table 3.2. Feasibility Analysis Matrix.

Feasibility Criteria Wt.

Operational Feasibility 30%

Functionality. A description of to what degree the candidate would benefit the organization and how well the system would work.

Political. A description of how well received this solution would be from user management, user, and organization perspective.

Technical Feasibility 20%

Technology. An assessment of the maturity, availability (or ability to acquire), and desirability of the computer technology needed to support this candidate.

Expertise. An assessment of the technical expertise needed to develop, operate, and maintain the candidate system.

Economic Feasibility 30%

Cost to develop (Baht):

Payback period (discounted):

Net present value (Baht):

Detailed Calculations:

Schedule Feasibility 20%

An assessment of how long the solution will take to design and implement.

Ranking 100%

Candidate I

Fully supports the user requirements in terms of both functionality and business process.

Score: 85

Programmers have full experience with Microsoft Product; therefore, the development process can be done easily and smoothly.

Microsoft Visual Basic 6.0 is a company standard and mature technology based on version number.

Score: 80

Approximately 540,250

Candidate 2

Fully supports the user requirements in terms of both functionality and business process.

Score: 85

Oracle is the leading DBMS software that provides high efficiency. But programmers have a little experience with oracle product.

This requires the continuous training course for operating and maintaining the system because it has no guarantee of its future version.

Score: 75

Candidate 3

Fully supports the user requirements with quick implementation because it does not require the additional software installation on client PC.

Score: 90

Microsoft Access is Company Standard for DBMS. While ASP is a widely accepted technology in Intranet application development.

Score: 85

Approximately 550,750 Approximately 305,250

Approximately 1.3 Yrs. Approximately 1.4 Yrs. Approximately 8 months

Approximately I ,938, 798 Approximately 1,828,20 I Approximately 2,428,542

See Attachment J. See Attachment J. See Attachment J.

Score: 80

Approximately 6 months

Score: 80

81.5

21

Score: 75


Score: 70

77

Score: 95


Score: 95

91.5

3.4 Hardware and Software Requirement

Hardware and software specifications are important criteria to support our design

and implementation of the new system. The specifications should fit our size and budget

of system design. So, the appropriate price and quality of hardware and software are the

best choices to get good performance and save the budget. As the proposed system

requires one server to serve with clients, the hardware specification for server and each

client are shown in Table 3.3 and Table 3.4. Software specification for each client and

server are showing in Table 3.5 and 3.6.

The hardware configuration for Inventory Management System is shown in Figure

3 .3 The figure shows one server with a UPS and one Hub with connect to the clients

from five departments. Each client has a UPS to protect the shortage of electricity and

the loss of information from that. Accounting and Purchasing Department mostly use

dot matrix printer to print PIO, invoice and any receipts. Other departments find it more

convenient to use laser printer.

22

Table 3.3 The Hardware Specification for Server.

Hardware Specification

CPU Intel Core 2 Duo E6420 (2.13 GHz 4MB/1066 FSB)

Memory 2 GB (2xl GB) DDR2-667 ECC

Hard disk 160 GB SATA NCQ 7200 rpm

Floppy Drive No Floppy Disk

CD-ROM Drive 16X DVD+/-RW Light Scribe

Backup Drive Backup Tape Device

Mouse Standard USB Mouse

Keyboard Standard USB Keyboard

Monitor Samsung 940BW 19 inches ( 4 ms. DVI Wide Screen)

Network Adaptor 10/ 100/ 1000 Network

Display Adaptor ATI V3350 256 MB

LAN Card 3 COM T5-3C905CX-TX-M-1 10/100 MB

HUB 3 COM 3C16703A

UPS SYMDOME Gold Series 500 VA

Printer EPSON LQ-300+II, HP LASERJET P1505n

23

Table 3.4 The Hardware Specification for Each Client.

Hardware Specification

CPU Intel Pentium Dual Core processor E2140

(1.6 GHz, lMB L2 Cache, 800 MHz FSB)

Memory 512 MB DDR2RAM up to 2GB with FSB 667 MHz

Hard disk 160 GB 3G SA TA Hard Drive at 7200 rpm

Floppy Drive 1.44 MB

CD-ROM Drive Super Multi SATA Drive with LightScribe, Double Layer 8.5 GB

Mouse Standard USB Mouse

Keyboard Standard USB Keyboard

Monitor VP T15S 15" LCD

Network Adaptor Integrated 10/100 Base-T Ethernet

Display Adaptor Intel GMA 950 Graphics with 32 MB shared graphics memory up to 256 MB

~~--- -~-·---

LAN Card 3 COM T5-3C905CX-TX-M-1 10/100 MB

UPS SYMDOME Gold Series 500 VA

Printer EPSON LQ-300+II, HP LASERJET P1505n

Table 3.5 The Software Specification for Each Client.

Software Specification

Operating System Microsoft Window XP Professional

Application Software Microsoft Office 2007

Virus Protection Software McAfee Virus Scan

24

Table 3.6 The Software Specification for Server.

Software Specification

Operating System Microsoft Window 2003 Server

Application Server Microsoft Office Professional 2007

Database Server Software Microsoft Access 2007

Virus Protection Software McAfee Virus Scan

25

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3.5 Security and Control

The company should be ensured that the computer system is controlled to

maintain integrity, privacy, data security, organization security and availability. The

best security system may not produce good result for our computer system. So, the

appropriate security and control system should be considered to fit our specific system.

Security and Control of the system can be classified simply as the following:

3.5.1 System Security

(a) Identification and Authentication: User name and password are assigned to

authorized persons. Defined range of good password (normally 6 to 8

characters) and non-displaying password on screen. If the user fills the

wrong password or user name or both, the system will keep a count of

failed attempts. After the third attempt, the system will lock that user's

account.

(b) Password aging: Every three months (a company regulation), the system

will require the users to change their passwords automatically.

(c) Uninterruptible Power Supply (UPS): UPS system will supply the power

to the system in case of electricity supply shortage. The system can

continue to work for a short period of time. This equipment supports to

save hardware and give time to record some processing jobs. ..

(d) Fixing software defect (bugs): Software bug is an error, failure or fault in

computer program. The easy way to fix is load a new patch or new version

of software. Another way is to contact developer to fix it.

27

3.5.2 Data Security

(a) Backup and Recovery: Backups are useful to restore the original after

unpredictable data loss. The two functions of backup are restore a computer

to an operational state that runs the system without intelTuption. The second

is restore number of files after being deleted or corrupted. The company has

a regulation to backup into magnetic tape once a month. The period to

backup file is at the beginning of the month.

(b) Virus Protection: Computer virus will damage the computer by damaging

programs, deleting files including formatting the hard drive. Although

backup method can recover the system from computer virus, the users may

lose some updated information and have slow recovery. Anti-virus is one

easier way that can delete and eliminate known viruses. Updated anti-virus

is required. In addition, the regulation to prohibit other media such as VCD,

DVD, or any flash drive used in the computer system. This is another way

that protects the software and data from computer virus.

28

3.6 Cost and Benefit Analysis

After studying and designing the proposed system, cost and benefit analysis is an

economic tool to aid decision making by owner or management level. The tool

establishes a general framework that will lend consistency to analyses, facilitating their

comparison and ensuring good practices. Cost and Benefit of the existing and proposed

system are as the following:

3.6.l Cost of the existing system

The existing system is still operated manually. Then, there are

generally two types of costs (fixed cost and annual operating cost). Fixed

cost is only equipment cost, and annual operating costs are salary expense,

office supplies and miscellaneous cost.

Purchasing team uses only basic office equipment to operate their job.

There are two calculators, one fax and a copy machine. Air Moving

Equipment section has two purchasing staff to operate all inventory process

such as checking the shortage inventory, place the material purchasing order

to each supplier, report the monthly summary to manager, etc. Most of task

is input into MS. Excel and print all data on paper again to check manually.

So, the process is slow and has a high cost of paper compared with the

proposed system.

The details of the existing system cost are summarized on Table 3.7

29

Table 3.7 Existing Manual System Cost Analysis

Cost items Years

I 2 3 4 5

Fixed Cost

Calculator 2 units@ 500 1,000.00 - - - -

Fax Machine 1 units@ 3,000 3,000.00 - - - -

Copy Machine l units@ 30,000 10,000.00 10,000.00 10,000.00 - -Total Fixed Cost 14,000.00 10,000.00 10,000.00 - -

Ogerating Cost

Manager I person @25,000 25,000.00 26,750.00 28,623.00 30,626.00 32,770.00

Purchasing Staff 2 person@ 12,000 24,000.00 25,200.00 26,460.00 27,783.00 29,172.00

Inventory Staff 2 person@ 8,000 16,000.00 16,800.00 17,640.00 18,522.00 19,448.00

Total Monthly Salary Cost 65,000.00 68,750.00 72,723.00 76,931.00 81,390.00

Total Annual Salary Cost 780,000.00 825,000.00 872,676.00 923,172.00 976,680.00

Office Su1mlies & Miscellaneous Cost

Stationary Per Annual 30,000.00 33,300.00 36,930.00 40,923.00 45,315.00

Paper Per Annual 31,000.00 34,400.00 38,140.00 42,254.00 46,779.00

Utility Per Annual 37,000.00 42,100.00 46,610.00 51,571.00 57,028.00

Miscellaneous Per Annual 29,000.00 21,200.00 23,620.00 26,282.00 29,210.00

Total Annual Office Supplies, Utility and Miscellaneous Cost

127,000.00 131,000.00 145,300.00 161,030.00 178,332.00

Total Annual Operating Cost

1,524,000.00 1,572,000.00 1, 743,600.00 1,932,360.00 2,139,984.00

Total Existing Svstem Cost 1,538,000.00 1,582,000.00 1,753,600.00 1,932,360.00 2, 139,984.00 u111t: Baht

Table 3.8 Five Years Accumulated Existing Manual System Cost

Year Total Existing System Cost Accumulated Cost

I 1,538,000.00 1,538,000.00

2 1,582,000.00 3, 120,000.00

3 1,753,600.00 4,873,600.00

4 1,932,360.00 6,805,960.00

5 2,139,984.00 8,945,944.00

Total 8,945,944.00 -unit: Baht

30

3.6.2 Cost of the proposed system

The proposed system cost also is separated into fixed cost and annual

operating cost. As fixed cost consists of hardware cost, software cost, salary

expense (means persons who are involved in developing the new system),

maintenance cost (both hardware and software), and implementation cost,

whereas annual operating cost has the lower cost category as compared to

the existing system cost.

As computer hardware and software are required for the new system,

the costs for them include the salary expense for system developer. The

maintenance cost of HP vendor (Computer Server and Clients) give the HP

Carepack Service (Local Warranty Extension), 5 years extension for server.

The cost is 10,000 baht and paid within 90 days after purchase. The clients

get 3 years local warranty extension for 3,390 Baht. In addition, the training

and implementation costs are spent according to the project budget before

implementing the proposed system

The new system reduces the number of officers in AME purchasing

section and moves them to another section such as Electric Fan or the new

section (Air Purifier section). One AME purchasing staff and one inventory

staff is enough to operate the process without any workloads. There are IT

staffs that maintain Ventilating and Electric Fan system. That staffs can

maintain the computerized system without any cost. They are system analyst

who acts as the consultant for the system user in case of any problem about

system function, and network administrators who are responsible for

maintaining the network connection of the developed system.

31

The details of the proposed system cost are summarized on Table 3. 9

Table 3.9 Proposed System Cost Analysis

Years Cost items

I 2 3 4 5

Fixed Cost:

Hardware Costs Server I unit @ 75,000 25,000.00 25,000.00 25,000.00 - -

Modem I unit @ 7,000 7,000.00 - - - -UPS 500 VA 6 units @ 3,000 9,000.00 9,000.00 - - -Client 5 unit @ 16,000 20,000.00 20,000.00 20,000.00 20,000.00 -Printer 6 units @ 9,500 14,250.00 14,250.00 14,250.00 14,250.00 -

Total Hardware Costs 75,250.00 68,250.00 59,250.00 34,250.00 -

Software Cost

Server I unit@ 50,000 25,000.00 25000 - - -Client 5 unit @20,000 20,000.00 20000 20000 20000 -

Total Maintenance Cost 45,000.00 45000 20000 20000 -

Salary ExQense

System Analyst 4 months @20,000 80,000.00 - - - -

Programmer 2 months @ 15,000 30,000.00 - - - -Database Specialist I month @25,000 25,000.00 - - - -

Network Specialist I month @20,000 20,000.00 - - - -

Total Salary Expense 155,000.00 - - - -

lmQiementation Cost

Training Cost 25,000.00 - - - -Installation Cost 5,000.00 - - - -

Total Implementation Cost 30,000.00 - - - -

Total Fixed Cost 305,250.00 I 13,250.00 79,250.00 54,250.00 -0Qerating Cost: User:

Manager I person @25,000 300,000.00 321,000.00 343,476.00 367,512.00 393,240.00

Purchasing Officer 1 person @ 12,000 144,000.00 151,200.00 I 58,760.00 166,698.00 175,032.00

Inventory Officer I person @ 8,000 96,000.00 100,800.00 105,840.00 I I 1,132.00 116,688.00

Office SuQQlies & Miscellaneous Cost:

Stationary Per Annual 25,000.00 26,000.00 27,000.00 28,000.00 29,000.00

Paper Per Annual 18,000.00 16,500.00 15,000.00 15,000.00 15,000.00

Utility Per Annual 37,000.00 39,600.00 43,000.00 45,000.00 58,000.00

Miscellaneous Per Annual 10,000.00 13,000.00 16,000.00 19,000.00 21,000.00

Maintenance Cost:

Server Mainte. Cost I set @ 10,000 10,000.00 - - - -Clients Mainte. Cost I sets@ 3,390 3,390.00 - - 3,000.00 3,000.00

Software Mainte. Cost 2 sets@ 400 800.00 800.00 800.00 800.00 800.00

Total Annual Operating Cost 644,190.00 668,900.00 789,126.00 810,392.00 811,760.00

Total Proposed System Cost 949,440.00 782,150.00 868,376.00 810,392.00 811,760.00

Unit: Baht

32

Table 3.10 Five Years Accumulated Proposed System Cost

Year Total Proposed System Cost Accumulated Cost

1 949,440.00 949,440.00

2 782,150.00 1,731,590.00

3 868,376.00 2,599,966.00

4 810,392.00 3,410,358.00

5 811,760.00 4,222, 118.00

Total 4,222, 118.00 -unit: Baht

(3) The Comparison of the System Costs between Existing Manual System and

Proposed System

After both the existing system cost and proposed system cost are

identified, the comparison table is constructed to reveal the cost saving after

implementing the proposed system. The figures of the comparison of the

system cost are summarized on Table 3 .11

Table3. l l The Comparison of the System Costs between Proposed System and Existing System, Baht.

Year Accumulated Existing Accumulated Proposed

System Cost System Cost

1 1,538,000.00 949,440.00

2 3,120,000.00 1,731,590.00

3 4,873,600.00 2,599,966.00

4 6,805,960.00 3,410,358.00

5 8,945,944.00 4,222,118.00 unit: Baht

33

( 4) Benefit Analysis

The benefits of the proposed system can not be measured directly but

it is estimated. However, the benefits can be classified into two categories:

tangible and intangible benefits. The tangible benefit can be expressed in

monetary value, whereas the intangible benefits are qualitative. The details

of these benefits can be summarized as follows:

(a) Tangible Benefits

(1) Increasing the speed of transaction processing time for checking

and record raw material. In addition, faster retrieve and

exchange data from database.

(2) Reducing the human error from manual tasks

(3) Eliminating unnecessary processes or jobs

( 4) The proposed system reduces the cost of hiring new employees.

(5) Reducing paper work because most data is in the form of

electronic equipment.

( 6) Saving office supplies and miscellaneous cost

(7) Personnel saving: Fewer staffs and officers are required to

operate the system.

(8) Good management reports that managers know very clear

pictures about the situation and making good decision making.

(b) Intangible benefit

The following items are the expected intangible benefits of the proposed

system:

34

(1) Improving the quality of services to production line and

efficiency of operation including customers can get the products

faster

(2) Improving employee job satisfaction

(3) Provide more accurate, meaningful and timely information

(4) Create good image of the company

(5) Reduce searching time for desired documents

(6) Improve security and control

(7) Increase the customer satisfaction toward faster delivery time

(8) Provide a better standard of system and information

(9) Eliminating the overlap and tedium of work

(5) Break-even Analysis

Break-even Analysis shows the point where the accumulative cost of

the existing system is equal to the accumulative cost of the proposed system.

At the beginning, the cost of the existing system is higher than the cost of

the proposed system because of inefficient system.

The break-even point of the proposed system is depicted on Figure

3.4. The figure shows that the cost of the implementing new proposed

makes an accumulated cost lower than the existing cost. There is break even

point on the implementation period in 7. 7 months. This event shows that

there is a very low risk to implement the new system. So, the company can

accept the new one.

35

-+- Accumulated Proposed cost

- Accumulated Existing Cost

Figure 3.4. Break-Even Chart

36

(6) Payback Analysis

Payback period is the commonly used technique to assess the value of

investment. Generally, payback period is the period that cash inflow can

recover the initial investment within a specified period. To reflect the real

value of money, the time value of money concept also applies to this

analysis. The discount rate is required to calculate the discount value of all

costs and benefits after the first year back to present value at the present

year.

Table 3.12 The Comparison of the Accumulated Cost Invested for the Proposed System and Accumulated Benefit from the Proposed System, Baht.

Year Accumulated Cost Accumulated Benefit Accumulated

(Benefit - Cost)

0 305,205 0 -305,205

1 625,508 1,102,862 172,103

2 668,218 2,281,027 682,050

3 713,215 3,538,528 1,226,336

4 761,386 4,880,962 1,807,384

5 813,946 6,316,066 2,428,542

The payback period can be calculated by using the following formula:

Payback Period Last year of negative + Cumulative difference last negative year Absolute value of cumulative difference

0 + 305 205 305,205+ 172,103

0.64, or 7.7 months

37

Cumulative Cost, Baht.

1,800,000.00

1,600,000.00

1,400,000.00

1,200,000.00

1,000,000.00

800,000.00

600,000.00

400,000.00

200,000.00

0

- 200,000.00

- 400,000.00

Payback Period

7.7 Months

2

Figure 3.5 Payback Chart

38

3 4

Cm1i1lative Life Time Tjme-Adj11sted Cost+ Benefit

5 Years

The figure compares the adjusted accumulated cost invest and the accumulated

benefit of the proposed system. As we can see, the payback period is 7. 7 months, which

means the accumulated benefit of the proposed system, will be more than the

accumulated cost invests after 7. 7 months. This payback period is shorter than industry

average and as a result the company should implement this project.

39

IV. PROJECT IMPLEMENTATION

4.1 Overview of Project Implementation

The implementation process will be accepted by managmg director with the

outline of the proposal for the new system including compared cost and benefit analysis.

The implementation and installation phase is the difficult part which concerns the

problems that occur in the design ands software development. The adjustment is based

on the real situation. There are 3 steps in implementing the project.

4.1.1 The new system software should be modular and partitioned into elements

for specific functionality and sub-functions. The independent functional characteristics

are easier to be programmed and altered.

4.1.2 Testing the finished-programmed system is important to make sure that the

design follows the user's requirements and is reliable. Any error has to be monitored

and debugged.

4.1.3 User guide and training program will describe the method of how to use the

program. The purpose is to ensure that users know the way to use the program

eff ecti vel y.

4.2 Stages of Project Implementation

The operational stage of program development can be classified into 3 main tasks;

analysis, program testing, and program implementation.

4.2.1 Program Analysis

In this project, MS. Access 2003 is used to build up the new system because it

completely provides the functions necessary to develop the proposed system. This is

simple way to use to design interface screen, menu design and designing database.

40

MS. Access 2003 is not complicated to develop. The program structure including the

screen design is user friendly and easy for user be familiar with the new system.

4.2.2 Testing Program

(a) Testing by Programmer

Programmer response to executing an individual unit and entire program to

monitor any error and fixing it. There are compiling the program, desk

checking and unit testing that programmer used to test the program. This

project dose not use complicated language as C+, COBOL or Assembly

language. So, the programmer just emphasized on desk checking which is

the process of reading the program including reviewing that logic.

(b) Testing by System Analyst

The system analyst responds to link testing that tests two or more programs

that are linked and work together as required. The basic way to test is set of

test data which contains both valid and invalid data and input all possible

situations. Sometimes, this kind of test is called string testing, series testing

or integration testing.

(c) Testing by User

Users perform the system testing by using actual data and operate as the real

situation. This is the final test of all programs used with design

specifications. The main purposes are to confirm that Inventory System can

handle the normal operation and volume of data in a timely and responsive

manner. Moreover, it guarantees that purchasing officer can successfully

interact with the proposed system.

41

4.3 Conversion

As almost all inventory system of existing system is manual, it is not difficult to

convert the existing system into a proposed system. Conversion should be step by step

without disturbing the current system, and should make staff be familiar with the new

system and should train them. The project decides to use a parallel system in which the

new system will operate side by side with the old one to ensure that data will not be lost.

Parallel system is safe and stable to work with. The weak points are time consuming

and high cost to do duplicate works and redundant reports. Those disadvantages do not

affect our system much because the existing system is not too complicated and plan a

very short term to parallel the system.

There is one month of trial period for user to use the new system. After that

follow-up the system and solve unexpected problems are concerned both by user and

developer.

4.4 Training and Documentation

Training is a necessary part, because staff will know how to use the new system

and run the system efficiently. The training should cover the following topics:

(a) Overview of the system operation and procedure

(b) All basic features of the proposed system

( c) Duties and responsibilities of the users

Providing some evaluating to user for important operations and procedures can

be ensured that the users understand and operate the new system.

Documentation should be separated into two types. There is User Guide that

describes the process of how to use the new system. The best way is making a form of

screen shot because it is easy to understand. Another type is Programming Guide that

42

informed the flow of system and data dictionary. This is useful for expans10n

development and maintenance the system in the future.

43

V. CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions

As the proposed system is designed for manufacturing industry, inventory system

of factory is important to support the production line. If there is only one shortage of

raw material, the company has immediately loss of time and cost of labor. In addition,

that finished product can not be delivered to customer on time. The major benefits of

the new system are reduced cost of operation, control and manage the inventory system,

reduced time consumption and human error, and planning the inventory on hand.

Matsushita Seiko (THAILAND) Co., Ltd. has no inventory system for Air

Moving Equipment (AME) products. The system has to be set up from factory in Japan

and there is the problem because most programs are set up in Japanese language. The

inventory staff has to control the AME raw materials manually. Those tasks include

place purchasing order, print invoice, checking stock on hand, control the operation

expense and deliver raw materials to production line. Any inventory report is

summarized from data on paper work and done manually. Moreover, there are many

redundant processes and time consumption that makes it slows to other routine tasks.

The inventory staffs have to work many procedures and have more chances of human

errors.

The proposed system provides an efficient process to perform tasks by using the

computerized system. Database is kept in the system resource and can be shared. The

inventory staff can know immediately when the raw material is short which includes the

system can print the purchase order to suppliers at their command. The system reduces

waste of time from manual process. Moreover, managers can access to get the present

information to support their decision making. The interfaces are designed by using the

44

user friendly format which got information from the inventory staff or end users, the

according to user's requirements and are easy to use and understood by the user-friendly

format. Table 5.1 shows the time performance on each process of the proposed system

compared with the existing system. Each process of proposed system performs less time

compared with the existing system. So, it can be concluded that the proposed system is

more efficient and effective than the existing system.

Table 5.1. The Degree of Achievement between the Existing System and the Proposed System.

Process Existing System Proposed System

Customer Information Entry 20 minutes 10 minutes

Supplier Information Entry 20 minutes 10 minutes

Order Process 40 minutes 15 minutes

Check Inventory Process 40 minutes 10 minutes

Generated Daily Report 1 hour 5 minutes

Generated Monthly Report 2 hours 5 minutes

Total 5 hours 55 minute

The details of this operation time improvement can be summarized as follows:

(1) Customer information entry

In factory, purchasing section receives the purchasing order from sales

company. This information will get from the meeting at the beginning of the

month. The existing system of manually entering customer information

spends about 20 minutes. It consists of the process of write down the

45

customer information into the paper form, and gets the approval sign from

purchasing manager. After that, the staff will type it in the excel spreadsheet

again which generally takes a lot of time. On the other hand, the proposed

system provides the customer form that is set up by the company. So, it is

not necessary to double work. As a result, it spends only 10 minutes.

(2) Supplier Information Entry

The existing system of supplier information entry spends about 20

minutes. It also consists of the process of question and answer between the

supplier and purchasing staff. The staff still do double task as in customer

information entry process. On the other hand, the proposed system provides

supplier interface to support this procedure. As a result, it spends only 10

minutes.

(3) Order Process

This process is also a time-consuming task to accomplish the existing

system. The time spent for finding the raw material number, exact name

part, price and supplier information. In contrast, the proposed system will

help in preparing these details through the information database. As a

result, the proposed system helps in reducing time of the process from 40

minutes to only 15 minutes.

( 4) Check Inventory Process

The existing system takes 40 minutes to count the physical stock

against manual record paper. With the proposed system, the inventory

balance will be prepared automatically. As a result, it spends only 10

minutes.

46

(5) Generate Daily Report

The existing system uses MS Excel to prepare the reports. It consumes

a lot of time to calculate the report manually. On the other hand, in the

proposed system, the report can be prepared automatically based on the data

in the database. As a result, the proposed system helps in reducing time of

the process from 1 hour to only 5 minutes.

(6) Generate Monthly Report

This process is a time-consuming task for the existing system. The

time is spent for retrieving, calculating and summarizing the data manually.

In the proposed system, the report can be prepared automatically based on

the updated data in the database. As a result, the proposed system helps in

reducing time of the process from 2 hours to only 5 minutes.

5.2 Recommendations

In the future, the system should expand into Sales Company and potential

Suppliers because the information is recorded directly from those compames. It

provides faster transaction processes and reduces human error. In addition, customer

will get more lead time to order the products or get the product faster. This is one

business competition that occurs in the present business situation. And suppliers will get

more production period or deliver the products faster.

To do a full cycle in this field, the payment system via the Internet is an

interesting plan to expand the system because it more convenience to the customers and

suppliers who want to make payment through the Internet instead of going to banks.

47

APPENDIX A

ENTITY RELATION SHIP DIAGRAM

48

+: "°

Cus

teom

er

Cus

tom

er I

D (

PK

) C

usto

mer

Nam

e C

onta

ct P

erso

n A

ddre

ss

Cou

ntry

E

-Mai

l T

elep

hone

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ax N

o.

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e o

f App

lica

tion

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lier

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plie

r ID

(P

K)

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r N

ame

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ress

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rovi

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umbe

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ax N

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ank

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nch

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Inve

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y

APPENDIX B

DATA FLOW DIAGRAM

52

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w

I I Pr

oces

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fo.

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syst

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Fun

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ompo

sito

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iagr

am o

f Pro

pose

d In

vent

ory

Con

trol

Sys

tem


Payment Raw material and Parts "' ,.

' i I i • Products Purchase Order

Invoice Inventory


Management System

. ~ Products

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Material Information Production information

Finished Goods

Defect Goods

PURCHASING Dept. Products Requirment PRODUCTION ~ . .

Inventory reports . ~

Production reports

Figure B.2 Context Data Flow Diagram of the Proposed System

54

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firm

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New

Sup

plie

r

APPENDIX C

DATABASE DESIGN

64

0\

Vl

Tab

le C

. l

Cus

tom

er T

able

.

No.

F

ield

Nam

e F

ield

Typ

e

1 C

usto

mer

Num

ber

varc

har

(10)

2

Cus

tom

er N

ame

varc

har

(30)

3 C

onta

ct P

erso

n va

rcha

r (3

0)

4 A

ddre

ss

varc

har

(150

)

5 P

rovi

nce

varc

har

(20)

6 E

-mai

l va

rcha

r (2

5)

7 T

elep

hone

va

rcha

r (1

0)

8 F

ax

varc

har

(10)

9 D

ate

of A

ppli

cati

or D

ate

Inde

x U

niqu

e N

ulla

ble

For

eign

Key

fro

m T

able

C

heck

K

ey T

ype

y y

Pri

mar

y K

ey

Att

ribu

te

Att

ribu

te

Att

ribu

te

Att

ribu

te

y y

Att

ribu

te

Att

ribu

te

Att

ribu

te

Att

ribu

te

0\

0\

Tab

le C

.2

Sup

plie

r

No.

F

ield

Nam

e

1 S

uppl

ier N

umbe

r

2 S

uppl

ier N

ame

3 A

ddre

ss

4 P

rovi

nce

5 T

elep

hone

6 A

pple

Dat

e

7 B

ank

8 B

ranc

h 9

Acc

ount

Nam

e 10

A

ccou

nt N

umbe

r 11

A

ccou

nt T

ype

Fie

ld T

ype

varc

har

(8)

varc

har

(30)

varc

har

(255

)

varc

har

(20)

varc

har

(20)

date

varc

har

(30)

varc

har

(30)

va

rcha

r (3

0)

varc

har

(30)

va

rcha

r (3

0)

Inde

x U

niqu

e N

ulla

ble

For

eign

Key

fro

m T

able

C

heck

y y

Key

Typ

e

Pri

mar

y K

ey

Att

ribu

te

Att

ribu

te

Att

ribu

te

Att

ribu

te

Att

ribu

te

Att

ribu

te

Att

ribu

te

Att

ribu

te

Att

ribu

te

Att

ribu

te

~ ~ ~ ~ ~ ~ ~ ~ ~ 5 ~ ·~

0\

-...J

Tab

le C

.3

Pur

chas

e O

rder

No.

F

ield

Nam

e

1 P

urch

ase

Ord

er N

umbe

2 S

uppl

ier

Num

ber

3 P

urch

ase

Ord

er D

ate

4 S

uppl

ier N

ame

5 P

aym

ent M

etho

d

Fie

ld T

ype

varc

har

(8)

varc

har

(8)

Dat

e

varc

har

(30)

varc

har

(30)

Inde

x U

niqu

e N

ulla

ble

For

eign

Key

fro

m T

able

C

heck

K

ey T

ype

y y

Pri

mar

y K

ey

Sup

plie

r A

ttri

bute

Att

ribu

te

Att

ribu

te

Att

ribu

te

0\

00

Tab

le C

.4

Pur

chas

e M

ater

ial

No.

F

ield

Nam

e

1 P

urch

ase

Ord

er N

umbe

r

2 M

ater

ial

Num

ber

3 Q

uant

ity

4 P

rice

Tab

le C

. 5

Sup

plie

r D

eliv

ey

No.

F

ield

Nam

e 1

Sup

plie

r M

ater

a! N

umbe

r 2

Pur

chas

e O

rder

Num

ber

3 D

eliv

ery

Dat

e 4

Sup

plie

r Nam

e

Tab

le C

.6 M

ater

ial

No.

F

ield

Nam

e 1

Mat

eria

l Num

ber

2 P

art N

ame

Fie

ld T

ype

varc

har

(8)

varc

har

(8)

Int

Int

Fie

ld T

ype

varc

har

(8)

varc

har

(8)

Dat

e va

rcha

r (3

0)

Fie

ld T

ype

varc

har

(8)

varc

har

(30)

Inde

x U

niqu

e N

ulla

ble

For

eign

Key

fro

m T

able

C

heck

K

ey T

ype

y y

Pur

chas

e O

rder

P

rim

ary

Key

Mat

eria

l P

rim

ary

Key

>=O

Att

ribu

te

>=O

Att

ribu

te

Inde

x U

niqu

e N

ulla

ble

For

eign

Key

fro

m T

able

C

heck

K

ey T

ype

y y

Pri

mar

y K

ey

Pur

chas

e O

rder

A

ttri

bute

A

ttri

bute

A

ttri

bute

Inde

x U

niqu

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fro

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ribu

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0\

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Tab

le C

.7

Mat

eria

l D

etai

l

No.

F

ield

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1 M

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umbe

r

2 D

eliv

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ber

3 C

ost

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uant

ity

Tab

le C

.8 M

ater

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Out

No.

F

ield

Nam

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eria

l O

ut N

umbe

r 2

Mat

eria

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ut D

ate

Tab

le C

.9 M

ater

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Out

Det

ail

No.

F

ield

Nam

e 1

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eria

l O

ut N

umbe

r 2

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eria

l Num

ber

3 D

eliv

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ber

4 C

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ype

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(8)

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e Fie

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(8)

varc

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(8)

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uppl

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Del

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>=

O A

ttri

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>=

O A

ttri

bute

APPENDIX D

DATA DICTIONARY

70

DATA DICTIONARY

Table D. l. Data Dictionary

Field Name Meaning

Address The address of the customer consist of street, district, and amphur

Customer The company's customer

Supplier The company's supplier

Customer ID. The identification number of the customer

Customer Customer's details such as owner name, address, customer's Information telephone number and etc.

Customer Name The name and surname of the customer

Inventory The company's inventory section

E-mail Customer and Supplier electronic mail address

Report On demand and/or periodic report

Quantity on Hand Quantity of that product at current timer

Purchase Order Send purchasing order to supplier

Product Information Products detail

Material Raw Material for produce the product

Payment Method Type of Payment to Supplier: Cash, Cheque, Transfer

New Customer The detail of new customers who have just subscribed Subscription

Receive Product Receive material from supplier

Password The verification password for the customer to log into the system

71

Table D.1. Data Dictionary (Continued).

Field Name Meaning

Check Inventory Request to check inventory level

Supplier Number The identification number of the supplier

Defect Product Defect products from production line

Work in Process Product which is not finished in production line

Production Plan Daily or monthly target of production

Updated Customer Updated customer information into the customer database Data

Delivery Date The day that supplier deliver their parts

72

APPENDIX E

USER INTERFACE DESIGN

73

Delete 1

Save I Cancel J

76

Delete 1 Save f

77

APPENDIX F

REPORT DESIGN

84

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Page

1o

f1

APPENDIX G

FEASIBILITY ANALYSIS

91

Table G 1 Estimated Cost of Candidate 1

Cost items Price

Develo12ment Cost

Hardware:

1 Server unit @ 75,000 25,000.00

1 Modem unit @ 7,000 7,000.00

6 UPS 500 VA unit@ 3,000 9,000.00

5 Client unit @ 16,000 20,000.00

6 Printer units @ 9,500 14,250.00

Total Hardware Costs 75,250.00

Software

1 Server unit@ 50000 25,000.00

5 Client unit@ 20,000 20,000.00

Total Software Cost 45,000.00

Salary Ex12ense

1 System Analyst ( 4 months @ 20,000) 80,000.00

2 Programmer (6 months@ 20,000) 240,000.00

1 Database Specialist (1 month @ 50,000) 50,000.00

2 Network Specialist (1 month @20,000) 20,000.00

Total Salary Expense 390,000.00

Im12lementation Cost

Training Cost 25,000.00

Installation Cost 5,000.00

Total Implementation Cost 30,000.00 Total Develooment Cost 540,250.00

Project Annual 012erating Cost:

User: 1 Manager (person @25,000) 300,000.00 1 Purchasing Officer (person @ 12,000) 144,000.00 1 Inventory Officer (person @ 8,000) 96,000.00

Office Su1212lies & Miscellaneous Cost:

Stationary Per Annual (2,083 Baht/Month) 25,000.00 Paper Per Annual (2,500 Baht/Month) 18,000.00 Utility Per Annual (3,083 Baht/Month) 37,000.00 Miscellaneous Per Annual (833 Baht/Month) 10,000.00

Maintenance Cost:

1 Server Mainte. Cost 1 set @ 40,000 40,000.00 6 Clients Mainte. Cost 6 sets@ 3,000 18,000.00 2 Software Mainte. Cost 2 sets@ 1,000 2,000.00

Total Annual Operating Cost 690 000.00 Total Project Annual Cost 1,230,250.00

unit: Baht

92

Table G.2 Estimated Cost of Candidate 2

Cost items

Development Cost

Hardware:

1 Server

1 Modem

6 UPS 500 VA

5 Client

6 Printer

unit @ 75,000

unit @ 7,000

unit @ 3,000

unit @ 16,000

units @ 9,500

Total Hardware Costs

Software

1 Server

5 Client

unit@ 70,000

unit@ 30,000

Total Software Cost

Salary Expense

1 System Analyst 2 Programmer 1 Database Specialist

1 Network Specialist

(6 months@ 20,000) (3 months @ 20,000) (3 month @ 25,000)

(1 month @ 20,000) Total Salary Expense

Implementation Cost

Training Cost Installation Cost

Total Implementation Cost Total Development Cost

Project Annual Operating Cost:

User: 1 Manager 1 Purchasing Officer 1 Inventory Officer

(person @ 25,000 ) (person @ 12,000) (person @ 8,000)

Office Supplies & Miscellaneous Cost:

Stationary Per Annual (2,083 Baht/Month) Paper Per Annual (2,500 Baht/Month) Utility Per Annual (3,083 Baht/Month) Miscellaneous Per Annual (833 Baht/Month)

Maintenance Cost:

1 Server Mainte. 6 Clients Mainte. 2 Software Mainte.

Cost 1 set @ 40,000 Cost 6 sets@ 6,000 Cost 2 sets @ 1,000


Total Project Annual Cost

unit: Baht

93

Price

25,000.00

7,000.00

9,000.00

20,000.00

14,250.00

75,250.00

30,000.00

37,500.00

67,500.00

120,000.00

120,000.00 75,000.00

20,000.00

335,000.00

65,000.00

8,000.00

73,000.00 550,750.00

300,000.00 144,000.00 96,000.00

25,000.00 18,000.00 37,000.00 10,000.00

40,000.00 36,000.00

2,000.00

708,000.00

1,258,750.00

Table G.3 Estimated Cost of Candidate 3

Cost items

Development Cost

Hardware:

1 Server

1 Modem

6 UPS 500 VA

5 Client

6 Printer

unit @ 75,000

unit @ 7,000

unit @ 3,000

unit @ 16,000

units @ 9,500

Total Hardware Costs

Software

1 Server

5 Client

unit@ 50,000

unit @ 20,000

Total Software Cost

Salary Expense

1 System Analyst 2 Programmer

1 Database Specialist 1 Network Specialist

(4 months@ 20,000)

(2 months@ 15,000) (I month @ 25,000) (1 month @ 20,000)

Total Salary Expense

Implementation Cost

Training Cost

Installation Cost

Total Implementation Cost Total Development Cost

Project Annual Operating Cost:

User: 1 Manager 1 Purchasing Officer 1 Inventory Officer

(person @ 25,000) (person @ 12,000) (person @ 8,000)

Office Supplies & Miscellaneous Cost:

Stationary Per Annual (2,083 Baht/Month) Paper Per Annual (2,500 Baht/Month) Utility Per Annual (3,083 Baht/Month) Miscellaneous Per Annual (833 Baht/Month)

Maintenance Cost:

1 Server Mainte. 6 Clients Mainte. 2 Software Mainte.

Cost 1 set @ 10,000 Cost 6 sets @ 3,390 Cost 2 sets @ 400


Total Project Annual Cost

umt: Baht

94

Price

25,000.00

7,000.00

9,000.00

20,000.00

14,250.00

75,250.00

25,000.00

20,000.00

45,000.00

80,000.00 30,000.00

25,000.00 20,000.00

155,000.00

25,000.00

5,000.00

30,000.00 305,250.00

300,000.00 144,000.00 96,000.00

25,000.00 18,000.00 37,000.00 10,000.00

10,000.00 3,390.00

800.00

644 190.00

949,440.00

Table G. 4 The Benefit of the Proposed System

Benefit Items

I . Personnel Reduction Purchasing Officer (I Person @ 12,000 Baht I month) Inventory Officer (I Persons@ 8,000 Baht I month) Total Annual Personnel Reduction Benefit:

2. Operating Time Saving Manager (I Persons@ 3 Hours@ 312.0 Baht) Purchasing Officer (I Persons @ 4 Hours @ 200.00 Baht) Inventory Officer (I Persons@ 4 Hours@ 133.00 Baht) Total Annual Operating Time Saving:

3. Office Supplies and Miscellaneous Cost Reduction Stationery Per Annual Office Supplies Per Annual Utility Per Annual Miscellaneous Per Annual Total Annual Office Supplies and Miscellaneous Cost Reduction:

4. Elimination of the Possible Long Run Cost Inventory Officer ( l Persons @ 8,000 Baht I month) Purchasing Officer (1 Person @ 12,000 Baht I month) Temporary Staff (2 Person @ 8,000 Baht I month) Purchasing Manager (I Person @ 25,000 Baht I month)

Total Benefits of the Proposed System:

unit: Baht

95

Price

144,000.00 96,000.00

240,000.00

74,880.00 48,000.00 31,920.00

154,800.00

5,000.00 3,000.00

1,000.00 9,000.00

96,000.00 144,000.00 192,000.00 300,000.00 732,000.00

I, 135,800.00

\0

0\

Tab

le G

.5

The

Ben

efit

of t

he P

ropo

sed

Sys

tem

(Y

ear

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5),

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t.

Ben

efit

Y

earO

Y

ear

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Y

ear3

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ear4

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enve

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om o

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of t

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ew s

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tors

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ime

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coun

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3%

; it

depe

nd o

n in

tere

st r

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fine

d th

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rest

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ect.

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RO

I is

11 %

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e bu

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ss g

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back

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n in

vest

men

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d th

e

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nt in

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Lif

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me

cost

s)/ E

stim

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= (6

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Ave

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RO

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1 % p

er y

ear

"° -..J

Tab

le G

.6

Pay

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dida

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2

BIBLIOGRAPHY

English References

1. Babara C. McNurlin, Ralph H. Sprague, Jr. Information Systems Management in

Practice, Fourth Edition. NJ: Prentice-Hall, Inc.,1998.

2. Elaison, Alan L. Systems Development: Analysis, Design, and Implementation.

Boston: Little Brown, 1987.

3. Fizgerald, Jerry. Internal Controls for Computerized Information Systems. Redwood

City, CA: Jeery Fitzgerald & Associates, 1978.

4. Forouzan, Behrouz, Catherine Coombs, and Sophia Chung Fegan. Introduction to

Data Communications and Networking. NY: McGraw-Hill, 1998.

5. Page-Jones, Meilir. The Practical Guide to Structured System Design. NJ: Prentice-

Hall International Company, 1998.

6. Philip J. Pratt, Joseph J. Adamski. Database System Management and Design, Third

Edition. Davers, MA: Boyd & Fraser, 1994.

7. Wetherbe, James and Nicholas P. Vatarli. Systems Analysis and Design: Best

Practices. 4ed. St. Paul, MN: West Publishing. 1994.

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101

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