LYCEUM OF THE PHILIPPINES UNIVERSITY CAVITE

LYCEUM OF THE PHILIPPINES UNIVERSITY CAVITEGen. Trias, Cavite

A System Proposal EntitledPOINT OF SALES SYSTEM & INVENTORY SYSTEM FOR AMANTES LEATHER REPAIR SHOP

Submitted By:Macaspag, Grace AnnProject LeaderLoyola, JeremyLoyola, JeromeMembers

IT-202Program & Section

Submitted To:Mr. Genson P. MendozaFaculty, DCS

ACKNOWLEDGEMENT

We, the proponents, are using this opportunity to express our unending gratitude to everyone who supported and helped us throughout the course of this project. We are thankful for those people for their excellent guidance, priceless constructive criticism, and friendly advice.First, we would like to endlessly thank our Almighty God for gifting us with the skills, patience, knowledge, and strength that we needed to finish this project; for without His guidance, we never would have gotten this far.Second, we extend our profoundest gratitude to our project advisers, Mr. Genson P. Mendoza and Ms. Maricar R. Sucaldito, for pouring out all their knowledge and advice in every lesson; because all those helped us, the proponents, push this project with grace until the end. Another person we would like to extend our gratitude to is the business owner, Mr. Jetson Amante, for entrusting us with the opportunity of providing his growing business with a working automated system.Lastly, we would like to extend our deepest appreciation and gratitude towards our family, friends, and loved ones for all the support that they had given us to carry out and accomplish this study.

ABSTRACT

TABLE OF CONTENTS

LIST OF FIGURES

LIST OF TABLES

Chapter 1INTRODUCTION

IntroductionInventory system is an effective way for monitoring and tracking different materials that are transferred in and out of a companys warehouse or establishment usually for accounting purposes. It is also important for a company to monitor all the transactions and movement of goods in order to keep an account of all their stocks. However in some establishments, the inventory of materials is done manually in such a way that an employee writes down the information of different materials every time it is transferred in and out of the room. In POS-Inventory System, there is a corresponding form for every incoming or outgoing item (from the stock room). These forms serve as the basis of comparison when inspecting, that is the amount of item that goes in or out must tally with those written in the forms. In addition to the complexity of the process, the employee responsible on this task also needs to check the stocks once in a while so as to monitor which items are already getting below the allowable minimum quantity. Because of the draining work, there were circumstances when the inventory record in the computer does not tally with the actual amount of the available items. Another thing to consider in manual inventory is prone to errors since it is inevitable that the employee assigned to do the inventory would commit mistakes. Due to the inefficiency of manual inventory, security is also being risked. If not properly monitored, theft and loss of items can actually take place. It is also time consuming to take note of several details each time an item is brought in and out of the stock room.Since manual inventory consumes a lot of time and is susceptible to errors, it would be helpful to build a system that will automate the transactions from acquisition of the product description to updating the inventory database. Work efficiency of employees is defined as how productive they are in their work. The automated inventory system will improve employees work efficiency by automating routinely and time consuming tasks such as the time spent in taking down product information. As a result, the time can be used in more productive activities. Accuracy is defined as the correctness of accessing information. The accuracy of the current system will also be improved, since the automated inventory system would eliminate the need of constantly encoding lengthy details of products by having an inventory database.

In a world where business and commerce is now always present, the IT industry !!!!!! A Point of Sales System (POS) and Inventory System are fundamentally critical for any business that offers a physical item. The POS for keeping track of all the transactions occurring inside the business, and the inventory system to monitor the products and materials the company has accessible.

Project ContextFor this project, our team agreed upon using a POS or Point of Sales System alongside an Inventory System for a small business called Amante's Leather Repair Shop run by the owner, Mr. Jetson Amante. This business fine-tunes any material made of leather; may it be from shoes to bags to wallets and belts.

With a staff composed of not more than five, they are in charge of all the work done inside the shop. Every process is done manually; meaning all transaction records are purely paper work and is written down on a log book. This process is the only way used by Mr. Amantes business ever since his father instituted it.

According to the interview conducted by the researchers last January 20, there are two main problems in the leather repair shop. These include difficulty in keeping record of past transactions and struggle of maintaining and monitoring materials in the inventory. Doing these tasks manually can be really time-consuming and can even cause trouble and hassle to the people involved in the business. Due to the absence of a system to do this, Mr. Amante experiences great inconvenience in record keeping.

Mr. Amantes business provides a strong business case because these two systems, POS and Inventory, would be very much valuable to his business since his shop tenders services to people. He will definitely need a Point of Sales system to record all the transactions most especially the payment of a particular business transaction after the provision of a specific service that the team can render.

For the Inventory system, regardless of the way of any business, the owner should have to monitor the items or materials his company has so as per Mr. Amante who uses a number of equipment to run his business, he will need this system specifically to monitor the growth and shortfall of his stocks, and also to have an over-all control of the goods that goes in and out of his firm. Not only will the system be very useful, it will also be helpful in the efficiency of the business, leading to success.

Project DescriptionRecordkeeping and inventory monitoring are the primary components of the system. Recordkeeping being concerned with listing down and keeping track of all the transactions done within the day, and inventory monitoring, on the other hand, concerned with keeping account of all the supplies or materials used by the workers to repair items. Besides keeping track of the business deal and the materials needed, recordkeeping and inventory monitoring is also concerned with maintaining the records accurately.

From the two features mentioned, the system provides a simple user level for all the users making use of the system. Each user only sees the feature custom-made for the user level designated to them. The system administrator will be the owner, Mr. Jetson Amante, and his user level gives him full control of the whole system including adding, updating, and deleting items and transactions from the inventory and point-of-sales component of the system respectively. The employees, on the other hand, can only add transactions and items in the point-of-sales and inventory.

Objectives of the ProjectThe project aims to develop an efficient system that will try to increase productivity in the workstation and alleviate or lessen, at the very least, the problems that the business are currently experiencing due to the lack of an effective system that can be used in the firm.

Specifically, the study aims to:1. Design the system with the following features:a. Add, update, and delete transactions and items that are present in the system,b. Maintain the inventory of the materials by providing a user-friendly inventory component in the system itself,c. Present a detailed data about a specific transaction by including the information regarding the customer and the transaction that took place.2. Create the system using the following front-end and back-end programs:a. Microsoft Visual Studio Express 2012 for the Graphical User Interface (GUI) of the system,b. MySQL Workbench 6.3 for the systems database,c. PhotoScape for editing images.3. Test and improve the acceptability of the developed system using selected criteria from ISO 9126:a. Functionality, which is a set of attributes that bear on the existence of a set of functions and their specified properties. The functions are those that satisfy stated or implied needs.b. Reliability, which is a set of attributes that bear on the capability of software to maintain its level of performance under stated conditions for a stated period of time.c. Usability, which is a set of attributes that bear on the effort needed for use, and on the individual assessment of such use, by a stated or implied set of users.d. Efficiency, which is a set of attributes that bear on the relationship between the level of performance of the software and the amount of resources used, under stated conditions.e. Maintainability, which is a set of attributes that bear on the effort needed to make specified modifications.f. Portability, which is a set of attributes that bear on the ability of software to be transferred from one environment to another.

Scope and Limitations of the ProjectThis part of the documentation shows the time frame of how the researchers managed to create the whole system using the time allotted to finish the project. Kindly refer to Appendix B for the Gantt chart that will show which activities were done, how long it took, and at which month it was finished. There are eight (8) activities done by the researchers in the span of five (5) months. The longest activity done is the team meeting, which lasted for the whole span of time allocated for the project since the researchers have to meet as often as possible to brainstorm and talk about changes regarding the system. Next up is the System Planning which lasted for two (2) months because the team had to identify which features to include in the system. Title proposal happened only on the first month because it only took days for the researchers to accomplish this task. The next activity is the client interview that lasted for three (3) months because the client needs to be informed of the progress and involved as much as possible in whatever change there may be. Data gathering and System Documentation lasted also for three (3) months because while the system gets developed every information/data that was needed gets collected and everything that was done is documented so the researchers can keep track of their progress. The System Testing and Evaluation lasted only for the month of March as well as the Defense.The technical scope of the proposed system includes: storing of customer details in the database, recording of specific details about a particular transaction including the date and full description of the business exchange which includes the service offered and the sales information (cash tendered, amount paid, change, etc.) and lastly, real-time monitoring of the inventory condition to fully control and keep up with the stocks of the materials needed to run the business.

Alongside the scope of the system are the technical limitations as well. Though the POS System has the capacity of displaying details of a specific transaction, it cannot print out an Official Receipt (OR) since the system does not come with the needed hardware to do so. Unlike other POS Systems, the system we have created specifically for Amantes Leather Repair Shop is not Web-based. Since the business does not have any other branch, it needs not of a server to access information using an internet connection. Additionally, doing so is much too intricate for our team to push it through and we also did not find the need to create it that way because the business is small therefore needing only a simple system. Another limitation of the system is its inability to display the exact time when the transaction was added.

Significance of the ProjectThe researchers led this study for the benefit of the following people: the business owner, the employees, the customers, and the developers themselves.

The business owner handles all the business processes (like the negotiation with the customer) and executes all the tasks that directly affect the jobs of his subordinates. With the automation of the system that complements the manual processes, the business owner can then easily keep track of the transactions without having to go through stacks of papers.

The inventory portion of the system benefits the workers bigtime because this will keep them updated about the current status of the materials in stock; now their work has a meager chance of being delayed because this system will make sure that the inventory is monitored and is updated real-time.

The system can also benefit the customers because having an automated system like the one proposed can improve the work of the business owner and his team resulting into a better service. Lastly, another beneficiary of the project are the developers of the project for they are given the chance to enhance and put their skills to good use, treating this project as a training ground for future assignments.

Chapter 2CONCEPTUAL FRAMEWORKIntroductionThe chapter presents the review of related literature and studies underlying the framework of the study. These studies are focused on providing useful information that will give clarity and understandability in the process of the development of the system.Related LiteratureComputerized Record Keeping SystemA computerized system and a manual system act the same when it comes to a certain principle, but a computerized system automates all the processes so it becomes faster and more accurate. MS Money and Quicken are some examples of the programs that can be used to eliminate manual processes. The users can easily input information and assign a specific category where it is included so the system could easily organize all its contents.How Inventory Management Systems WorkAn inventory management system provides customers satisfaction if the system is regularly maintained. From a scale of big companies to smaller businesses and vendors, an inventory system is an essential part of the business. It provides the business a way to easily manage and maintain all their products. For the customers, the owner of the business can easily show them which of the products they need are available for purchase. Faster production rates, proper organization of products and having a wide variety of choices between products are just few factors that may affect the business.Inventory Management: Advance Methods for Managing Inventory within Business SystemsSuccessful inventory management can expand income, decrease costs, and enhance cash flows. Inventory Management teaches managers proper methodologies to take control of their inventory system and guarantee that operations run smoothly. Looking past the complexity and theory of inventory management, Geoff Relph and Catherine Milner concentrated on the most imperative choices managers need to make when managing stocks. They scrutinized how inventory management ought to function, how to control it, and how to balance it.Inventory Control SystemAn inventory control system is utilized as a part of numerous warehouses to track the area, amount, and status of products that are to be sold. Dispatching and receiving of items is appointed by an inventory control system. Inventory control utilizes barcodes and RFID labels to track particular items. An audit, or a physical check of inventory, is utilized to discover how many items are in an inventory. Inventory taking is regularly required so as to get a precise count for accounting valuation purposes. Some inventory components have barcodes attached or etched on them. These barcodes can be read amid an audit by barcode reading gadgets.Perpetual Inventory SystemAccording to article of Rosemary Peavler, a perpetual inventory tracking system is a method of immediately accounting for inventory sales in the inventory account, if there is no theft or spoilage. It is an inventory management system where store balances of inventory are recorded after every transaction. It eliminates the need for the store to close down constantly for inventory stock-taking as perpetual inventory systems allow for continuous stock-taking. Perpetual inventory systems keep a running account of the company's inventory.Perpetual inventory systems involve more record-keeping than periodic inventory systems. Every inventory item is kept on a separate ledger. These inventory ledgers contain information on cost of goods sold, purchases, and inventory on hand. Perpetual inventory management systems allow for a high degree of control of the company's inventory by management. Perpetual inventory management is generally used by companies who have the ability to scan the inventory items sold and who usepoint-of-sale inventory systems.Related StudiesForeignRecord Keeping SystemThe record keeping data that is manually entered is accompanied by the printed data to ensure that the system is able to produce accurate amounts of information. By applying this method, the system is able to show all the information manually given by the users and synchronize them with all the printed information intended for the system. Each section intended for the hand entered and printed data are separated do the system can show the users where to put as the exact informationLocalKorean Red Ginseng Enterprise Sales and Inventory SystemUnder the Korean Red Ginseng Enterprise Sales and Inventory System, the researchers came up with a computerized sales and inventory system. The researchers used databaseto easy access offiles and for easier and faster processing of the selling and inventory transaction. The program was designated to generate reports such as monthly reports, inventory reports, sales invoice and list of items.In connection with the proposed system, the researchers proposed a new and faster way ofprocessing business transactions. The system also helped the user to know the availability of the products. It also helped the manager to monitor the stocks and to get immediate notice for acquisition ofadditional products. The Proponents acquired knowledge about the file processing and report generations through this study. It also gave the proponents ideas to create the proposed systems reports in online sales and inventory system. Automation is mandatory, thus automated report generation for precise reports is to be included in the proponents proposed system.Online Supplies & Equipment Inventory System of Bee Gee Machine Shop & Engineering Works(Parentela et al., 2012) The Inventory Management System and the Inventory Control Process provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities, and communicate with customers.Point of Sale and Inventory System with Online Ordering and Bar Code Scanner for PhilComPhilCom uses an existing manual system in everyday transactions. The cashier literally writes down the customers order in a common printed receipt used also by the store or shop without computerized system. Using Microsoft Excel as the main storage of the companys inventory and sales report will cause problems such as data redundancy, data lost and data integrity because anyone can easily access the companys master list. PhilCom is a competitive business company that exercises manual system in their transactions such as purchasing of stocks, inventory ordering of products and providing sales report.Now a days, most of the business depends on the fast-phased changing of technologies being applied in the business. This technology helps business to run smoothly and able to make the work easier and more accurate. Having this technology, the company spends less time in doing such work and can able to do more jobs in the business.The study aims to develop a computerized sales and inventory system for Willyson Merchandising for accurate and faster transactions such as purchasing of products and inventory. The only difference is that the proposed system will include the Point of Sale (POS) system that uses barcode reader that makes marking down prices and recording the markdowns easy. The similarity of this system is that they have inquiries to the supplier for the supply of making their products.Proposed Sales Monitoring SystemAccording to the study of Anna Marie Beltran Distor of Proposed Sales Monitoring System issued 1995, The accelerated work structure of the company proper monitoring is key in keeping track of the business's sales activities. Her system targets to come up with an effective and precise mechanized system of providing receipts that will monitor the everyday transaction in order to generate reports. Essential data will be given by this study with a specific end goal to prove that the computerization of the business's operation will bring about a more dependable and proficient method for observing everyday transactions. Her system concentrates on the analysis and configuration of the sales monitoring system which will keep an eye on the stacks inventory of the sales department.R.M. Supermarket Point of Sale System(Celis, et al., 2013) A Point of Sale System will keep an accurate count of every product in a company or establishment. Its easy to see which items are selling and what needs to be ordered. Using a POS, it makes a business much more efficient, lowering the cost of running the business while improving customer service and making the business more pleasant to work in.SynopsisComputerized system and a manual system act the same when it comes to a certain principle, but a computerized system automates all the processes so it becomes faster and more accurate. The users can easily input information and assign a specific category where it is included so the system could easily organize all its contents.It provides the business a way to easily manage and maintain all their products. Inventory Management teaches managers proper methodologies to take control of their inventory system and guarantee that operations run smoothly. Looking past the complexity and theory of inventory management, Geoff Relph and Catherine Milner concentrated on the most imperative choices managers need to make when managing stocks.Inventory taking is regularly required so as to get a precise count for accounting valuation purposes. Some inventory components have barcodes attached or etched on them. These barcodes can be read amid an audit by barcode reading gadgets.

Perpetual inventory systems involve more record-keeping than periodic inventory systems. Every inventory item is kept on a separate ledger. These inventory ledgers contain information on cost of goods sold, purchases, and inventory on hand. Perpetual inventory management systems allow for a high degree of control of the company's inventory by management. Perpetual inventory management is generally used by companies who have the ability to scan the inventory items sold and who usepoint-of-sale inventory systems.

By applying this method, the system is able to show all the information manually given by the users and synchronize them with all the printed information intended for the system. Each section intended for the hand entered and printed data are separated do the system can show the users where to put as the exact information.The program was designated to generate reports such as monthly reports, inventory reports, sales invoice and list of items.

Conceptual Framework of the Project

Chapter 3METHODOLOGY Project DesignProject DevelopmentSystem RequirementsOperation and Test ProceduresTest Standards/Criteria

Chapter 4RESULTS AND DISCUSSIONProject DescriptionProject StructureProject Capabilities and LimitationsTest Results and Analysis

Chapter 5SUMMARY, CONCLUSION AND RECOMMENDATIONSSummary of FindingsConclusions The system was mainly designed to reduce the manual work of updating and tracking and also make it easier for the user. It also provides flexible and powerful reports regarding customer details, issue details and stock details. Thus inventory system was implemented successfully.Recommendations Therefore, the group recommends Automated Inventory System to eliminate data redundancy errors and inconsistency of data. It is also recommended that they had at least two persons that should be trained for the system