DESIGN AND IMPLEMENTATION OF AN
AUTOMATED INVENTORY MANAGEMENT SYSTEM FOR FINE BROTHER, ENUGU
ABSTRACT
This research
work is concise and generally summarizes the activities duly carried out in the
design and implementation of an automated inventory control system for Fine
Brothers. The system is designed to efficiently handle the movement and
tracking of goods. The manual method is labour intensive, costly, and error
prone and cannot ensure that the inventory remains up-to-date due to oversight
and internal shrinkage. With the proposed new system, inventory can be updated
in real time without product movement, scanning, or human involvement. The
automated system helps in; (i) the determination of inventory status, (ii)
registration of new stock, (iii)registration of new customers, (iv) supply of
goods to registered customers, (v) printing of transaction invoices for
customers for transactions that have taken place as well as viewing the
available transactions that were carried out at a particular time. The study
outlines the main concepts of the analysis and design methodology of the
proposed system, compares it to the existing and goes further to explain the
design and implementation of the system. The tools used were; Visual Basic 10
and Microsoft access 2007. The fact finding techniques employed is interview,
observation, online and library research.
TABLE
OF CONTENTS
Cover
page i
Title
page ii
Certification
Page iii
Dedication
iv
Acknowledgement
v
Abstract
vi
Table
of Contents vii
CHAPTER
ONE
INTRODUCTION
Background
of the Study 1
Statement
of the Problem..............................................................2
Aims/objectives
of the project.....................................................3
Justification
for the project...........................................................3
Objectives
of the Study.................................................................4
Scope
of the Study.........................................................................4
Definition
of Basic Concepts.........................................................5
Project
report organisation……………………………………..6
CHAPTER
TWO
LITERATURE
REVIEW
Comprehensive
Overview...............................................................7
Types
of Inventory Control System................................................7
Four
types of Inventory Control Systems........................................8
Manual
Inventory Management System........................................8
Barcode
Technology......................................................................8
Radio
Frequency Identification (RFID)..........................................9
Warehouse
Management System....................................................9
How
Inventory Control Systems really work..................................11
What
Industries use Inventory Control Systems.............................13
Application
of ICS in the Manufacturing Industry........................12
Importance
of Inventory Control Systems.....................................14 8
Warehouse
Management Systems (WMS).....................................15
Warehouse
Management Rules Engine...........................................15
Rules
Workbench..........................................................................16
Warehouse
Management System Strategy....................................16
Importance
of Warehouse Management Systems..........................17
ICS
vs. WMS..................................................................................18
Automated
Inventory Control System Software..............................18
CHAPTER
THREE
Research
Methodology...................................................................20
Data
Collection...............................................................................21
Primary
Source...............................................................................20
Secondary
Source...........................................................................20
Observational
Method....................................................................20
Analysis
of the existing system....................................................21
Limitations
of the Existing System................................................22
System
Design.................................................................................23
Input
Specification...........................................................................23
Output
Specification........................................................................23
Processing.........................................................................................23
Data Base Design………………………………………………......28
System
Flow Chart………………………………………………....29
Top
Down Diagram………………………………………………...30
CHAPTER
FOUR
Choice
of development tools.........................................................32
System
Requirements…………………………………………....32
Software
Requirements.................................................................32
Hardware
Requirements................................................................33
Functional
Requirements...............................................................33
Non-functional
Requirements........................................................34
System
Implementation..................................................................34
System
Testing................................................................................37
Unit
Testing....................................................................................38
System
Testing................................................................................41
Testing
Process................................................................................41
integration…………………………………………………….......42
CHAPTER
FIVE
Summary
of
findings.....................................................................43
Limitations
of the project.............................................................43
Recommendations.........................................................................43
Conclusion.....................................................................................44
CHAPTER
ONE
INTRODUCTION
BACKGROUND
OF THE STUDY
An inventory control system contains a list of orders to be filled
and then prompts workers to pick the necessary items, and provides them with
packaging and shaping information, inventory control may be used to automate a
sales order fulfillment process and also manage in and outward material of hardware.
Automation is the replacement of human workers by technology. For optional
sales and inventory management process, robust functionality is needed for
managing logistic facilities. Ware house management functions for inventory
control cover internal ware house movements and storage and its support helps
in the recording and tracking of materials on basis of both quantity and value.
This application takes care of all supply orders reducing cost for
warehousing, transportation while improving customer service. It significantly
improves inventory turns, optimizes flow of goods and shortens routes within
warehouse and distribution centres. it also improves cash flow, visibility and
decision making providing efficient execution of task using this fast and reliable
computerised method. Automation is the replacement of human
workers by technology. For optimal sales and inventory management process,
robust functionality is needed for managing logistics facilities. Warehouse
management functions for inventory control cover internal warehouse movements
and storage and its support helps in the recording and tracking of materials on
basis of both quantity and value.
This
application takes care of all supply orders reducing cost for warehousing,
transportation while improving customer service. It significantly improves
inventory turns, optimizes flow of goods and shortens routes within warehouse
and distribution centres. It also improves cash flow, visibility and decision
making providing efficient execution of tasks using this fast and reliable
computerised method.
The
design and development of an automated inventory control system for the Fine
Brothers Int,l will no doubt bring immeasurable relief from the problems
associated with the manual system.
1.2
STATEMENT OF THE PROBLEMS
The Fine Brothers Intl is
to an extent manually operated and reveals a number of problems.
Ø The recording of sales and cash received are done manually on a
book that appears rough, thus the books are exposed to physical damage,
information can be lost and dust particles are accumulated.
Ø The long list supply order waiting to be attended to on daily
basis.
Ø The control system is time consuming, less accurate and less
efficient and the environment is not user friendly.
Ø
Inaccuracies often ensue
from human error.
The manually system is quite tedious and can be reduced or
eliminated with the introduction of the proposed system.
The
manual system is quite tedious and can be reduced or eliminated with the
introduction of the proposed system.
OBJECTIVES
OF THE STUDY
The main objective of the study is to develop an automated
Inventory Control System for Fine Brothers. While other subsidiary objectives
include:
Ø To provides total asset visibility.
Ø To ensure the reduction inventory stocking levels giving full
inventory history
Ø To reduces lead time, shelf space, and errors due to damage,
fatigue of staff and overall cost of operations.
Ø
To facilitates ―just in
time‖ deliveries
Ø To
provides higher level security as the system would be pass worded to prevent
unauthorized access.
Ø To
shortens cross docking time and spends up sort/ pick up rate.
Ø
To helps the management plan, monitor,
optimize resources and ascertain their financial position at any time.
JUSTIFICATION
FOR THE PROJECT
This
study is primarily aimed at increasing efficiency in operations, reducing
maintenance and running cost, monitoring the supply of goods and its
distribution and increase profit in the Fine Brothers by introducing an
automated inventory control system.
The
new system will among other things help to;
Maintain
accuracy in database handling.
Improve
flexibility.
Increase
efficiency and reliability of the system.
Provide
a user friendly interface.
Save
time, manpower and paperwork.
These,
no doubt will possibly affect the quality of services rendered to customers.
1.5
OBJECTIVES OF THE PROJECT 15
The
main objective of this study is to develop a computerised inventory control
management system. Others include;
i.
To provide total asset visibility.
ii.
To allow reduced inventory stocking levels giving full inventory history.
iii.
To reduce lead time, shelf space, and errors due to damage, fatigue of staff
and overall cost of operations.
iv.
To facilitate “just in time” deliveries.
v.
To provide full process control for products.
vi.
To provide higher level security as the system would be passworded to prevent
unauthorised access.
vii.
To shorten cross docking time and speeds up sort/pick up rate.
viii.
To help the management plan, monitor, optimize resources and ascertain their
financial position at any time.
SCOPE
OF THE PROJECT
The
scope of the project covers the development of a computer based database
application for use by the fine Brothers to replace their old paper notebook
recording system.
The
requirements include designing a user interface for the application and
providing options for a user to log into the application by supplying the
correct username and password combination; register new customers and view a
list of already registered customers; to keep track of stock going out and
coming into the company’s warehouse; view users registered on the database;
create, delete or edit the information for a user, etc. It also covers writing
the background programming to ensure that the interface works with the database
through the underlying codes to perform the required actions. If also involves
the testing, improvement and optimization of the application.
DEFINITION
OF BASIC CONCEPTS
Automation:
This is the use of technology or computers to control and process data reducing
the need for human intervention.
Database:
This refers to a large store of related data on a computer that a user can
access and modify.
Password:
This is a secret code that must be entered into a computer to enable access to its
applications. It is made up of numbers, letters, special characters or a
combination of any of the above categories.
Inventory
Control System: A list of orders to be filled, and prompts workers to pick the
necessary items and provides them with packaging and shipping information.
Computerization:
This is the conversion of a manually operated system to a controlled, organized
and automated system.
Research:
A careful study of a subject to discover facts, establish a theory or develop a
plan of action based on the facts discovered.
System:
A set of computer components functioning together.
Technology:
The study of techniques of mobilizing resources such as information for
accomplishing objectives that benefit man and his environment.
Software:
A computer program or set of instructions that direct a computer to perform
processing functions.
Information
System: A collection of procedures, people, instructions and equipments to
produce information in a useful form.
Processing:
This is dealing with something according to an established procedure.
THE ORGANISATION AND HER
ENVIRONMENT
CHAPTER
TWO
LITERATURE
REVIEW
COMPREHENSIVE
OVERVIEW
According
to Microsoft Encarta (2009), Inventory is the quantity of goods and materials
on hand that a manufacturer uses to represent those items that are ready and
available for sale.
An
inventory control system is a set of hardware and software based tools that
automate the process of tracking inventory. The kinds of inventory tracked with
an inventory control system can include almost any kind of quantifiable goods
including food, clothing, books, equipment and other items that consumers,
retailers, or wholesalers may purchase. Modern inventory control systems are
exclusively based on using technology to track and control inventory. (Kotler,
2003)
Inventory
control systems work in real time using technology to transmit information to a
central computer system as inventory is monitored and as transactions occur to
ensure an organised management system and generate detail-oriented records and
reports that cover all aspects of the business. (Harry, 2005)
TYPES
OF INVENTORY CONTROL SYSTEMS
Properly
managing inventory requires a system of some sort. It does not matter if the
system consists of writing inventory levels on the back of an envelope or using
the most sophisticated radio frequency identification system. As the old saying
goes, “there are many ways to skin a cat”, the different types of inventory
control systems all have pros and cons. Choosing the right one boils down to
which system holds the most value for the company. (Rubin, 2007)
2.2.1
Basically, there are four types of inventory control systems:
Manual
inventory management system
Barcode
technology
Radio
Frequency Identification (RFID)
Warehouse
Management System
Manual
Inventory Management System
Many
small business owners, especially if the business has very few products, keep
track of inventory manually using a spreadsheet. Spreadsheets are set up to
calculate when products need to be reordered. At the start of each week, the
owner manually counts products and materials that are on hand and enters the
values in the spreadsheet and also enters expected usage based on existing
orders. Using the appropriate spreadsheet formulas, the owner can determine if
he has enough materials for the week or if purchases should be made. Manual
systems allow the small business owner to manage inventory with very little
investment in systems or training. Maintaining data integrity is a major downside
to manual inventory management as a single data entry or formula error can
cause major inaccuracies in the data output. (Lysons, 2001)
2.2.1.2
Barcode Technology
Barcodes
consist of series of parallel vertical lines, or bars, used to assign a unique
identification code to an item. The major use of barcode identification system
is to track inventory automatically. A barcode combines several sequences to
create a unique set of numbers or characters that identifies the item.
(Encarta, 2009)
All
major retailers use barcode technology as part of an overall inventory control
system because it increases the accuracy and efficiency of managing inventory.
When a barcode is read at the point of sale, inventory sales data is
immediately read and sent to a broader system that maintains usage statistics.
20
Barcodes
manage inventory at the warehouse level as it facilitates movement of inventory
within the confines of the warehouse. (Kenneth, 2002)
Radio
Frequency Identification (RFID)
This
technology is relatively new and it works by having a tag that emits
information that can be collected by a reader from a distance. RFID uses two
types of technology to manage inventory movement; active and passive
technology. Active RFID technology uses fixed tag readers assigned throughout a
warehouse such that anytime an item with an RFID tag passes the reader, the
movement of the item is recorded in the inventory management software. Active
systems work best in environments that require real time inventory tracking or
where inventory security problems exist. Passive RFID technology requires the
use of handheld readers to monitor inventory movement. Because RFID technology
has a reading range of up to 40 feet using passive technology and 300 feet
using active technology, it greatly increases the accuracy of moving inventory
around a warehouse. (Hamlett, 2006)
2.2.1.4
Warehouse Management System
This
is the management of storage of products and services rendered on the product
within the four walls of a warehouse. (Sande, 2003)
It
is a key part of the supply chain and primarily aims to control the movement
and storage of materials within a warehouse and process the associated
transactions including shipping, receiving, putaway and picking. It can be
described as the legs at the end of the line that automates the store, traffic
and shipping management. Warehouse management systems help to efficiently
monitor the flow of products. Once data has been collected, there is either
batch synchronization with, or a real time wireless transmission to a central
database. The database can then provide useful reports about the status of
goods in the 21
warehouse.
The Warehouse management system would be discussed further to reflect its mode
of operation.
The
types of inventory control systems are used generally to track and control
inventory. Many companies are now using sophisticated Warehouse Management
Systems integrated with Supply Chain Systems, Enterprise Systems and Electronic
Data Interchange (EDI). The movement and tracking of goods through the
manufacturing and supply chain process is still a complex procedure which is
difficult to manage. In many instances, the goods being distributed to the
retailer must go through one or more third party distribution processes before
they reach their final destination.
Currently,
most material tracking systems employ two dimensional barcodes that must be
close to and within the “line of sight” of the barcode reader. This requires
manual scanning or a conveyor like process to position the barcode and scanner.
Barcodes can run the risk of getting wet or scratched due to mishandling or a
harsh environment, which often prevents accurate reading by the scanner. Manual
intervention is labour intensive, costly and error prone. In addition,
scheduled scanning or manual method cannot ensure the inventory remains up to
date, due to oversights, errors and internal shrinkage. With RFID, inventory
can be updated in real time without product movement, scanning or human
involvement. The fully automated system allows inventory status to be
determined and shipping and receiving documents to be generated automatically.
The system also triggers automatic orders for products that are low in
inventory.
2.3
HOW INVENTORY CONTROL SYSTEMS REALLY WORK
The
systems work like this, first, barcodes or RFIDs tell scanners which items
consumers are buying. The scanners transmit the information to computers by 22
reading
the barcodes and sending that information to the software. The software then
interprets the numbers from the barcodes and matches those numbers to the type
of merchandise they represent. This allows the merchant to track sales and
inventory either at the checkout counter or with a handheld scanner keeping the
store abreast of which items are selling. (Zenz, 2004)
Specialized
software keeps track of how much stock is going out the door via purchases and
how much remains on shelves and in the warehouse, giving managers a real time
picture of what is happening. The software analyzes the data and makes
recommendations for reordering strategies. Sometimes they are programmed to
automatically order at a certain point. It is important to note, however, that
good systems leave room for human decision making. The systems provide good
information to support decisions but leave the final call up to managers. Once
mangers make a reorder decision, the system uses Electronic Data Interchange
(EDI) to communicate its needs for additional merchandise to a vendor.
Electronic Data Interchange is the process of sending and receiving data
between two parties, a retailer and a vendor, for example using data
transmission lines, such as the internet. The data is stored in a computer’s
memory bank and read by managers at both ends of the line.
While
inventory management systems offer retailers and vendors many advantages, there
are some pitfalls. Because the system aims to keep a bare minimum of stock in
store, retailers can be caught short if an item unexpectedly becomes a big
seller. Retailers traditionally have additional stock on hand known as safety
stock or buffer to prevent that occurrence but many have discontinued the
practise. And as with all technology, these types of systems are subject to the
effects of a wide spread computer crash or software failure.
Some
computer groups have objected to RFID technology too, claiming it invades their
privacy by providing additional information about their buying 23
habits
and personal data. They argue that the information could be used to push other
products on individual customers, or be sold to other businesses for similar
purchases. The RFID signals can also “step on” or “collide” with each other,
making accurate readings difficult.
Most
retailers, however, have bought into the vast advantages offered by such
systems. They include the high efficiency, the need for less warehouse space,
less cash tied up in inventories and better sales. The systems also promote
better information sharing between the retailer and the vendor, which helps
drive down cost for both, as well as for the consumer. Inventory control
systems can help a worker locate the items on the order list in the warehouse,
it can encode shipping information like tracking numbers and delivery
addresses, and it can remove these purchased items from the inventory tally to
keep an accurate count of in-stock items. The benefits of modern inventory
control systems are not just for the retail and manufacturing sectors. They
also offer great advantages for any organization that manages a supply chain
for consumable items. (Michael, 2002)
Everywhere
you look, inventory control systems are making sure the products are there when
we need them by providing businesses with real time inventory tracking
information which makes it simple to locate and analyze inventory information
in real time with a simple database search.
2.4
WHAT INDUSTRIES USE INVENTORY CONTROL SYSTEMS FOR
Inventory
control systems are employed in a wide variety of applications, but they all
revolve around tracking delivery of goods to customers. Inventory control is
crucial in retail stores especially to those with a large number or variety of
merchandise items for sale. Inventory control also used in warehouses to track
orders and shipments, and for automated order processing. Other important
applications of inventory control systems are in manufacturing, shipping and
receiving.
Application
of Inventory Control Systems in the Manufacturing Industry
Manufacturers
mainly use inventory control systems to create work orders and bills of
materials. This facilitates the manufacturing process by helping manufacturers
efficiently assemble the tools and parts they need to perform certain tasks.
For more complex manufacturing jobs, manufacturers can create multilevel work
orders and bills of materials which have a timeline of processes that need to
happen in the proper order to build a final product. Other work orders that can
be created using inventory control systems include reverse work orders and
automatic work orders. (Bolton, 2001)
Its advantages include;
a)
Cost Savings: It helps companies cut expenses by minimizing the amount of
unnecessary parts and products in storage and helps keep lost sales to a
minimum by having enough stock on hand to meet demand.
b)
Warehouse organisation: It helps distributors, wholesalers, retailers,
manufacturers optimize the warehouses. If certain products are often sold
together or are more popular than others, those products can be grouped
together or placed near the delivery area to speed up the process of picking,
packing and shipping to customers.
c)
Time Savings: It gives employees enough information access to receive products,
make orders, transfer products and do other tasks without compromising company
security by issuing administrator passwords to prevent unauthorised access.
The
disadvantages of its application are mostly cost and complexity. Many large
companies use inventory control systems but small businesses may not afford it
and if an IT technician leaves, the system might be too complex for the users
except another technician is employed.
Importance of Inventory Control
Systems
Inventory
control is important to ensure quality control in businesses that handle
transactions revolving around consumer goods. (Benson, 1999) Without proper
inventory control, a large retail store may run out of stock on an important
item. A good inventory control system will alert the retailer when it is time
to reorder. Inventory control systems are important means of automatically
tracking large shipments. For example, if a business orders ten pairs of socks
for retail resale but only receives nine pairs, this will be obvious on
inspecting the contents of the package, and error is not likely. On the other
hand, say a wholesaler orders 100,000 crates of malt and 10,000 crates are
missing, manually counting each crate of malt is likely to result in error.
An
automated inventory control system helps to minimize the risk of error. In
retail stores, an inventory control system also helps track theft of retail
merchandise, providing valuable information about store profits and the need
for theft-prevention systems.
WAREHOUSE
MANAGEMENT SYSTEMS
A
warehouse consists of area, equipment, items, devices and people. According to
Microsoft Encarta 2009, it is a large building or store in which goods,
commodities, or raw materials are stored. Within this warehouse, the processes
of purchasing, receiving, put away, storage, value added services, picking,
packing and shipping are constantly taking place. To aid in this endeavour, the
use of Warehouse Management Systems have been introduced. It spans the areas of
warehouse resource management, warehouse configuration, task management,
advanced pick methodologies and value added services. Warehouse Management
Systems optimize the material handling business processes for warehouses,
manufacturing facilities and distribution centres, as well as, providing
integrated barcode scanning and label generation to improve material
transactions and advanced shipping process. (Gramaccioni, 2009)
A
crucial part of a manufacturing organisation’s supply chain inventory
management involves proper storage and transportation of products to a chain of
retailers and wholesalers. Poor supply chain inventory management could spell
disaster for any company. The higher the inventory investment as a percentage
of total assets of a company, the higher the damage caused by poor inventory
control. To ensure that this does not happen, Warehouse Management System uses
a user defined rules engine coupled with its Advanced Task Framework to ensure
inventory accuracy.
Warehouse
Management Rules Engine
Warehouse
Management System can provide rules driven processes meaning that flexibility
meets needs without customizations. The rules driven processes eliminates
customization, can easily be changed or evolved, increases long-term
flexibility, and accelerates implementation. They are also supported for
directed picking, directed putaway, task assignment, costing and labelling.
Through the rules engine, companies can enforce proper work processes and employees
interact with the system with instructions that are fed and tasks that follow a
predefined work process based on conditions found in the warehouse. (Finchley,
2001)
The
Rules Engine can be used to create six different types of rules including
picking, put away, task type assignment, cost group assignment, label format
assignment, and operation plan assignment in a Warehouse Management System
enable environment. It is seeded with several default rules which allows for
material organization. Rules must be defined in a strategy and enabled using
the rules workbench.
Rules
Workbench
The
Rules Workbench is used to create rules to effectively dispatch tasks and
manage inventory. It can be used to streamline picking and put away of goods,
assign newly received products to a cost group, ensure customer complaint
labelling, assign tasks to a resource with the appropriate training and
equipment, and select the correct operation plan for tasks.
Warehouse Management System
Strategy
A
strategy is a sequence of rules that the rules engine runs to try to allocate
products, space, or fulfill a request. Picking, put away, cost group assignment
rules use strategies. Strategies are constructed from one or more rules and
rules can be reused for multiple strategies. If a strategy cannot find enough
products to fulfill an order or find enough space for a put away, the product
is backordered or the put away fails.
Importance of Warehouse Management
Systems
Warehouse
Management Systems provides for daily businesses with access to real time and
complete business information. With this information, employees receive real
time feedback on activities they perform and their impact on operations. The
system has an in-built performance management tool that enable mangers to
proactively manage warehouse performance. The Board Management can view the
company’s current financial status, perform transactions, and calculate product
availability. It is also used to monitor and refine facility activity thereby
providing real time status with active alerts and notifications to handle last
minute changes and keep key personnel informed with multiple reporting options.
The
warehouse management systems enable warehouses to maintain accurate, real time
inventory information through physical inventory management and cycle counts.
The warehouse would manage inventory levels using automated replenishment and
transfers between facilities. It enables companies to maximize their
utilization of labour, space and equipment by coordinating and optimizing
resource usage. The systems also direct and optimize stock putaway based on
real time information about the status of bin utilization. It provides a set of
computerised procedure to handle the receipt of stock and returns into a
warehouse facility, model and manage the logical representation of the physical
storage facilities, manage the stock within the facility and enable a seamless
link to order processing and logistics management in order to pick, pack and
ship product out of the facility.
Warehouse
management system is not just managing within the boundaries of a warehouse; it
is much wider and goes beyond the physical boundaries. It acts as an
interpreter and message buffer between existing systems. It does not just start
with receipt of products but with actual initial planning. It monitors the
progress of products through the warehouse. It uses the physical warehouse
infrastructure, tracking systems and communication between product stations to
monitor and deal with receipt, storage and movement of normally finished goods
to intermediate storage locations or to a final customer. It helps in optimal
cost of timely order fulfilment by managing the resources economically.
(Haywood, 1985)
2.5.3
Inventory Control Systems vs. Warehouse Management Systems
An
inventory control system can be extended by the warehouse management system
which manages to store bins in complex warehouse structures.
While
inventory control systems manage stock by quantity and value, the warehouse
management system reflects the special structure of a warehouse, and monitors
the allocation of storage and transfer transactions in the warehouse.
2.6
AUTOMATED INVENTORY CONTROL SYSTEM SOFTWARE
The
automated inventory control system software is a computer based system for
tracking product levels, orders, sales and deliveries. It can also be used in
the manufacturing industry to create a work order, bill of materials and other
production related documents. Companies use inventory management software to
avoid product overstock and outages and also, as a tool for organizing
inventory data that was generally stored in hardcopy form.
The
software is made up of components working together to create a cohesive
inventory control system which include;
i.
Asset tracking: This involves tracking products via its barcodes and other
tracking criteria such as serial number when they are in a warehouse or store.
ii.
Order management: Once products reach a certain low level, a company’s
inventory control system can be programmed to tell managers to reorder that
product. This helps companies to avoid running out of products or tying up too
much capital in inventory.
iii.
Service management: Companies that are primarily service oriented rather than
product oriented can use this software to track the cost of the materials they
use to provide services. This way, they can attach prices to their services
that reflect the total cost of performing them.
Automated
inventory control systems are efficient, effective and have helped to improve
the manufacturing industry thereby providing more security to warehouses while
improving customer service.
CHAPTER THREE
SYSTEM
ANALYSIS AND DESIGN
REAEARCH
METHODOLOGY
This
involves the specification of procedures for collecting and analyzing data
necessary to define or solve the problem for which the research is embarked
upon. The scope of this research covers the Fine Brothers Intl Enugu in
particular.
DATA
COLLECTION
This
project was achieved by gathering materials from different sources. One of the
invaluable sources of data was oral interview, which I conducted with stack
holders in industries and prospective users of similar systems.
Another
source that gave me a wealth of information was the internet, which provided
some of the details used to analyse some key issues. Some websites are willing
to provide vital information on Inventory control.
The
state and federal library were also resourceful in finding data concerning the
topic.
Primary Source
This
involves oral interviews conducted with various personnel in the Fine Brothers
Intl, Enugu, reviewing and sharing their experience about the difficulties they
undergo in using the manual inventory control system.
Secondary Source
This
includes the use of textbooks, dictionaries, journals, newspapers, electronic books
and internet downloads to collect data and aid comprehension of the system.
Observational Method
This
covers my personal visit to the Fine Brothers Intl, Enugu during the business
time. I observed the warehouse which looked disorganized, the queue of
retailers waiting to be attended to and the difficulties faced by the staff in
service delivery.
ANALYSIS OF THE EXISTING SYSTEM
The
existing system is one that has been manually operated over the years. It is a
system in which all the methods of controlling inventory is of a manual
approach. Critical analysis of this system reveals that it is prone to errors.
Careful analysis also shows that due to the complexities of the manual system,
records of inventory kept are inaccurate and manually operated in such a way
that requires the clerk to register sales on a book, thereby making a staff
handle two or three jobs at a time. An example is a staff trying to register
sales and at the same time rushing back to face a queue of impatient retailers
waiting to be attended to. This makes the place so crowded with customers with
just one person attending to them. Sometimes, due to unavailability of staff,
customers who have other things to do, end up missing their various
appointments. As a result of this, the attendant finds it very difficult to
have an accurate record as pressure is being mounted on him. The attendant
might end up writing an order meant for another customer and have it delivered
to the wrong person.
The
Fine Brothers Intl operates manually and has not adopted a computerised mode of
operation. This generates inadequate records or exercise 33
improper
management of the company and in extreme cases, the company may lose her
customers.
LIMIATIONS
OF THE EXISTING SYSTEM
As
we know, manual inventory control systems are quite tedious, time consuming and
less efficient and accurate in comparison to the computerised system. The Fine
Brothers Intl has the following problems/weaknesses.
a)
Compilation of inventory records consumes a lot of time and manpower.
b)
Some records get lost over time while some are not easily found.
c)
It involves lot of paperwork and data processing is very slow.
d)
The environment is not user friendly.
e)
The system does not calculate and give financial reports at a glance and as
such, the degree of decision making in urgent matters is not applicable.
f)
The system is unable to detect faults within the system in case of rectifying
fraud.
g)
It takes a long time for mistakes to be rectified and sometimes throws the
system into confusion.
SYSTEM
DESIGN
The
major fact taken into consideration in the design of the new system is the
automation of the inventory control system for effective management. In the
course of the design, the daily report on customer order status are captured,
databases were created to keep customer order.
3.5.1
Input Specification
Inputs
are raw materials that are fed into the computer for processing. The system
accepts input through the mouse and the keyboard. The registering of the data
of records is done via the mouse and keyboard. The mouse plays an important
role in closing windows, validating password. The keyboard is used to enter
text and values into the boxes.
Output
Specification
An
output is the information or result obtained from processing data which has
been fed into the computer e.g. screen, printer etc. The major output documents
here will be the accounts and financial reports and also customer order
reports.
Processing
There
are items which are sold and distributed to customers. An order is placed by
the customer-required details which are item name, quantity, and delivery time.
The order processing executes, looks up the stock of each item to find out
which is available or not and then fulfils the order. After formalities are
fulfilled, bill is generated by the system and sent to the customer by printing
an invoice. The work area is automated and maintained by the management to
generate a more efficient system.
DATA
BASE DESIGN
Files
used in this project are made up of different data types. Some of the files are
designed and linked with database. There are several advantages of storing data
in database and Microsoft Access database was used in this project design.
•
All data is stored at one location when a database is used, all tables are
stored in a single file thus, and we need not deal with separate buttons using
the single database file. Though all data is stored in a single file,
distinctions exist because tables are used since each table is stored as a
separate entity in the file.
•
It is possible to define relationship between tables and these are also stored
in the database.
•
It is possible to define validation at fields as well as table level and this
ensures accuracy of data being stored.
•
Query, report, sorting etc. are also used.
SYSTEM
FLOW CHART
Fig
6: System Flowchart 41
3.8
TOP DOWN DIAGRAM
Fig
7: Top down diagram
This
diagram breaks down what is contained in the software .when the software is
run, the login form appears and the user must input the information required by
the software to allow access to all its features which are; username and
password. Once information is inputted, the user can finally gain access to its
features (i.e. software). After passing through the login form, you find the
customer maintenance button which contains two forms, the register new customer
form and edit customer record form. The next button you’ll see is the stock
button which carries also two forms; the register product and edit product 42
form.
The next button that you’ll see is the transaction button that houses two
forms; the supply and view transaction form. Another button you’ll see is the
security button which carries only one form; the user form. Next button is the
summary button which also carries only one form; summary records form. The next
feature to be seen is the logout button, when clicked takes the user back to
the login form thereby putting the system on some sort of lock mode. The next
feature to be seen is the exit button, when clicked on, closes the entire
software. The next button seen is the help button which contains only one form;
about IVS. 43
CHAPTER FOUR
4.0 DESIGN, IMPLEMENTATION AND TESTING OF THE EXISTING SYSTEM
4.1 DESIGN STANDARD
The major fact taken into consideration in the design of the new
system is the automation of the inventory control system for effective
management. In the course of the design, the daily reports on customer order
status are captured; databases were created to keep customer order.
4.1.1 Input Specification
Inputs are raw materials that are fed into the computer for
processing. The systems accept input through the mouse and the keyboard. The
registering of the data of records is done via the mouse and keyboard. The
mouse plays an important role in closing windows, validating password. The
keyboard is used to enter text and values into the boxes.
Output Specification
An output is the information or result obtained from processing
data which has been fed into the computer e.g. screen, printer etc. the major
output documents here will be the accounts and financial reports and also
customers.
Processing
There are items which are sold distributed to customers. An order
is placed by the customer-required details which are item name, quantity, and delivery
time. The order processing executes, looks up the stock of each item to find
out which is available or not and fulfils the order. The system periodically
checks the stock of each item and if is found below the order level, and order
is placed for more production. After formalities are fulfilled, bill is
generated by the system and sent to the customer. The work area is automated
and maintained by the management to generate a more efficient system.
Database
File Design
Files
used in this project are made up of different data types. Some of the files are
designed and linked with database. There are several advantages of storing data
in database and Microsoft Access was used in this project design.
All data is
stored at one location when a database is used, all tables are stored in a
single file thus, and we need not deal with separate buttons using the single
database file. Though all data is stored in a single file, distinctions exist
because tables are used since each table is stored as a separate entity in the
files.
It is possible
to define relationship between tables and these are also stored in the
database.
It is possible
to define validation at fields as well as table level and this ensures accuracy
of data being stored.
Query,
report, sorting etc are also used.
SYSTEM
REQUIREMENTS
The
requirements for the implementation of this system are as follows;
v Hardware requirement.
v Software requirement.
v Functional requirement.
v Non-functional requirement.
Hardware
Requirement
For
effective operation of the newly designed system, the following minimum
hardware specifications are recommended:
a) The computer
system to use should be 100% IBM compatible since they are considered done
systems.
b) The computer
system processor to be used be Intel Pentium technology.
c) The minimum
Random Access Memory (RAM) should be 128MB.
d)
The system should have a hard disk of at least 20GB, 3.5 floppy drive and
CD-ROM drive.
e)
The system to use should be equipped with 14‖ VGA or SVGA monitor (colored).
f)
The mouse, keyboard and printer are also required.
The
listed configurations are the minimum requirements, but if the configurations
are of higher versions, the processing derived will definitely be better and
the program will run faster.
Software
Requirements
The
following specification are needed
a) Operating
System-Certified distribution of Windows.
b) Front
end-Visual Basic 6.0 Professional Edition.
c)
Black end-Microsoft Access 2007
Some
additional features of VB like Data grind, Data Report.
A
Input /Output
I. System shall
have a form to accept the customer details.
II. System shall
have a form to customer order.
III. System
shall display transaction details.
IV. System
should provide facility for change in address/name.
V.
System should maintain details about placing order/dispatch or order status.
B.
Error Handling
I. System should
report any errors on duplicate primary keys.
II. System
should report out of range values on numeric fields.
III. System
should report data type mismatches on fields on the form.
IV. System
should report invalid dates.
V. System should
report violation of rights authorization.
VI.
System should report invalid login errors.
Non
–Functional Requirements
I.
All user manuals should be provided in the necessary format.
II. Application
should support 5 simultaneous user.
III. Transaction
should be completed within seconds.
IV.
There will be backup procedure to maintain records.
4.3
SYSTEM IMPLEMENTATION
The
new system is designed to be put into efficient use here, we will look into the
various technical aspects that influenced the successful implementation of this
system and determine the effective operation of the system. System
implementation follows the approval of the system proposal and its objectives,
thus it is to arrive at a satisfactory, implemented, completed, and function
evaluated automated system. It also embodied the preparation of resources
including equipments and personnel.
The
supplier login password and identification is entered, he checks, tracks order,
dispatch order on customer and sends invoice after which he updates records.
The customer studies and makes a list of requirement, places the order, makes
payment and receives his invoice
SYSTEM
TESTING
Testing
presents an interesting anomaly for the software engineer where he attempts to
build
Software
from an abstract concept to a tangible product. During testing, the engineer
creates
Series
of test cases to discard preconceived
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
SUMMARY
The
main objectives of the study have been to determine the automated control
system for a manufacturing organization and the subsidiary objectives are:
1. To provide
total asset visibility
2. To ensure the
reduction in inventory stocking levels giving full inventory history
3.
To reduce lead time, shelf space and errors due to damage, fatigue of staff and
overall cost of operations
In
order to provide a theoretical framework for examining the above issues,
related literatures were reviewed. The literature reviewed covered the concept,
of development of inventory management system, impact of inventory management
system, best practice in inventory management system, inventory control system,
methods of inventory control system, implementing effective inventory
management system, benefits of using inventory management system, successful
inventory management system, future of inventory management system, analyzing
inventory management system, challenges of inventory, accurately tracking a
moving inventory, and Finally, the advantages of using automated inventory
control management system.
CONCLUSION
Based
on the literature review, it was quite evident that most organizations strive
to improve their inventory operations without increasing inventory cost. The
main idea however was to integrate and automate all of these processes to
achieve a one single cohesive software package. By investing in inventory
management systems, organizations can achieve strategic business objective and
increase their return on investment ROI.
The
purpose of this project is to provide a more reliable solution to Petroleum
Equalization Fund (Management) Board Stores to gain a competitive edge and
realize its objectives through increased sales and reduced cost.
RECOMMENDATIONS
If
one thing must be researched in the automated inventory control system with the
mind of perfecting it and making it more useful in the real sense of things, it
is the security of information handling software. The security of inventory
control system is very crucial considering the prevention of inventory crime
and similar vices so it is worth further researching.
Therefore,
I Recommend that that petroleum equalization fund management board Abuja should
set up a powerful computer based system.
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