SRI LANKA INSTITUTE OF INFORMATION TECHNOLOGY- FACULTY OF BUSINESS
Group Assignment - 2016 June
IM100 - Business Information Systems
Lucky Lanka PLC Food Cafe Point of Sale System
SLIIT – Faculty of Business
Department of Business Management
BBA Special (Hons) Degree/ BBA (Honours) in Business Management
Year: One Semester: One
SRI LANKA INSTITUTE OF INFORMATION TECHNOLOGY- FACULTY OF BUSINESS
Yuresh Nadishan
1
Faculty of Business
Submission of Group / Individual Assignments: Cover Sheet
Date of Assignment: 04.07.2016 Due Date: 04.08.2016
Date of Submission: 02.08.2016
1. Course: Bachelor of Business Administration
2. Year: 1 3. Semester: 1 4.Module Code: IM100
5. Module Name: Business Information System
6. Lecturer-in-charge: Chathurangika Kahandawaarachchi
7. Title of assignment: Information Systems in Business
Declaration;
We certify that:
This assignment is our own work, based on our personal study and research.
We have duly acknowledged all material and sources used in the preparation of this assignment.
Neither the assignment, nor a substantial part of it, has been previously submitted for assessment
in SLIIT or any other institution.
We have not copied in part, or in whole, or otherwise plagiarized the work of other students.
We are fully aware of the rules and regulations of SLIIT regarding plagiarism and exam
malpractices. I/We understand that I am/all of us are liable to bear the consequences of (anyone
involved in) plagiarism.
The use of any material in this assignment does not infringe the intellectual property/copyright of
a third party.
All resources documents/reference materials are attached to this document.
Student ID Student Name Signature Contribution
%
BM16432376 Nadishan G.S.W.Y. 100%
SRI LANKA INSTITUTE OF INFORMATION TECHNOLOGY- FACULTY OF BUSINESS
Yuresh Nadishan
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In 1991 Mr. Lal Keerthi Gunawardena, the current chairman started Lucky
Lanka as a self-employment with a single cow and a delivery of 100 glasses of milk. Today
Lucky Lanka has proudly expanded to national level, buying milk from thousands of dairy
farmers across the country and serving millions of customers nationwide. We have created
hundreds of employment opportunities to fellow Sri Lankans, contributing to the country’s
economy.
At the early years of the business the production process was done manually
and only had the limited capacity of delivering 300 glasses per day. Achieving success over
the years the company became a limited liability company in year 2007 and currently
operates as a national level enterprise in a wider scale with the goal of reaching the global
market. In order to meet the needs of current and potential customers Lucky Lanka offers
traditional dairy products such as curd, Pasteurized milk, Sterilized milk, UTH milk,
(strawberry, chocolate and vanilla) flavored milk, drinking yoghurt, fresh fruit yoghurt and
(strawberry, chocolate and vanilla) along with wide range of wholesome non-dairy products
including treacle, fruit jelly and fresh fruit drinks.
So far Lucky Lanka journey has been exciting, challenging and most
importantly a learning experience for us. Accolades such as SLS, ISO 22000 -2011 and
HACCP international standards were remarkable milestones of Lucky Lanka’s journey
towards creating a healthier nation. We will continue our legend with determination and
excellence.
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Table of Contents
Abstract……………………………………………………………………………………..3
1. Introduction to Business Organization...........................................................................6
2. Automated Business Process…………………………………………………………..7
3. Information System……………………………………………………………………8
3.1. The components of the IS ………………………………………………………..9
3.1.1. Hardware …………………………………………………………9/10/11/12
3.1.2. Software .......................................................................................................13
3.1.3. Databases .....................................................................................................13
3.1.4. People………………………………………………………………………13
3.1.5. Procedures………………………………………………………………….13
3.1.6. Telecommunication networks……………………………………………...14
3.2. The Systems Concept ...........................................................................................15
4. Measures for ethics and security of the system ...........................................................16
5. Development/ acquisition process of the system …………………………………....17
6. Expected benefits from the system ………………………………………………….18
7. Management of the IS …………………………………………………………….....19
8. Problems/ Issues currently faced with the current IS activities ……………………..20
9. Suggested improvements…………………………………………………………….21
10. Conclusion………………………………………………………………………...22
11. Lessons learnt ………………………………………………………………….…23
References…………………………………………………………………………….…..24
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List of Tables
Table 1: The System Concepts…………………………………………………………..14
List of Figures
Figure 1: Display…………………………………………………………………………9
Figure 2: Mouse…………………………………………………………………………..9
Figure 3: POS Keyboard………………………………………………………………...10
Figure 4: Barcode Reader……………………………………………………………….10
Figure 5: Cash Drawer…………………………….…………………………………….11
Figure 6: Receipt Printer………………………………………………………………...11
Figure 7: Pole Display…………………………………………………………………...12
Figure 8: Credit Card Reader…………………………………………………………….12
Figure 9: Local Area Network.……………………………………………………....…..14
Figure 10: Wide Area Network……………………………………………………….....14
Figure 11: The System Concept…………………………………………………………17
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1. Introduction to Business Organization
Lucky Lanka Milk Processing Company is an incorporated Sri Lankan
company in the field of milk processing heading towards building a healthy nation through
sharing the goodness of every drop of milk, we deliver to your door step. A healthy nation is
a wealthy nation. It is vital to include good nutrition in delicious food, but is this possible?
With the generation of expertise, we ensure the delivery of good quality, nutritious milk
products adding more value to customers’ life. Engaging high quality ingredients with
advanced technology we explore the potential and possible nutritional values in the products
of Lucky Lanka to inherit it to the next generation to come.
As a responsible corporate citizen Lucky Lanka provides its millions of
customers with high quality milk products. Prior to the milk processing the pure natural
ingredients will undergo a quality controllable test to ensure that those are meeting
company’s standards. Hence Lucky Lanka is the only yoghurt manufacturer in Sri Lanka
which accredited with SLS certification for the first time in the region. We share a better
equation with our independent farmers in delivering good nutrition to the nation as one unit.
Thus lead us be the most competitive milk product provider in Sri Lanka achieving
excellence and quality and delight our customers more.
Recently they opened a food cafe in Matara town to sell their dairy products to
customers and they maintain a fresh milk bar in their shop. They named this food cafe as
“Kiri Katha cafe” They sell their own fresh dairy products using this café.
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2. Automated Business Process
The point of sale (POS) is the time and place where a retail transaction is
completed. It is the point at which a customer makes a payment to the merchant in exchange
for goods or after provision of a service.
We analyzed about Point of Sale System of Lucky Lanka food retail shop
[Kiri Katha cafe]. It is not only a food retail shop but also a restaurant.
POS system performs a major part in ‘Lucky Lanka Food Retail shop [Kiri
Katha cafe] transaction activities, and using this system they can do their business activities
easily as well as enables them to redeem their employees in other tasks hence this system
reduces the number of employees required in transaction procedure.
Business organization carry out several activities by using their POS system
and some of the tasks (or protocols) practicing them are mentioned below:
.Transaction Recording Process
Transaction are recorded against each cashier until one transaction is processed another will
not begin.
Inventory Control Process
When reach to the re-order level system can inform to management of branch. System can
update their stock level automatically.
Accounting Process
System can keep daily transaction. End of the day system provides performance of the day.
System update accounting database end of the year.
Credit/Debit card payment process
Kiri Katha cafe café introduced VISA and MASTER credit card facility to their customers.
Recently they introduced Sampath shopping debit card facility to their customers. When they
deal with debit or credit card automatically update their Sampath bank account.
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3. Information System
POS system is the time and the place where the transaction originate. At that
point trader shall calculate the amount or the monitory value of the transaction as well as the
needful other actions such as printing invoices help cashier to enter the payment method.
POS system which Kiri Katha café uses has the capability to record details about debtors and
when transaction happened that will cater the database to update figures about business
debtors as well.
To execute company has to register each item that they are trading and is vital
to design a unique barcode to each item. Kiri Katha cafe has their in house storing facility and
they allocate a barcode to their products when the products are storing. Once the stocks
arrival they update stock information to the system. When customers are purchasing dairy
foods from them, they use POS system to furnish the invoice, calculate discounts, select
payment methods and carry out other needful actions. Once the transaction has done POS
system updates necessary databases.
POS system contains hardware such as display, POS keyboard, cash drawer,
barcode reader and etc. POS system eliminates old methods such as band written invoices.
Furthermore we can explain the advantages of POS system as well as its benefits over other
methods.
Pros and Cons of Point of Sale System
Pros
Cons
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3.1. The Components of the Information System
3.1.1. Hardware
1. Display
Figure 1: Display
Counter top space is always precious. They will want to minimize the footprint of your POS
system.
Flat panel monitors are ideal for POS applications. They use far less power, generate far less
heat and do not rob counter space better left to product displays.
2. Mouse
Figure 2: Mouse
A computer mouse is an input device that is most often used with a personal computer.
Moving a mouse along a flat surface can move the on-screen cursor to different items on the
screen. Items can be moved or selected by pressing the mouse buttons (called clicking).
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3. POS Keyboard
Figure 3: POS Keyboard
One refinement you can make to your POS system is to replace the standard computer
keyboard with a POS keyboard. A POS keyboard more closely resembles a cash register key
layout. The keys are programmable and can be setup to do one-key functions such as Total,
Produce, Soft goods, Discount, etc.
4. Barcode Reader
Figure 4: Barcode Reader
The most efficient and accurate way of ringing up sales at your checkout station is by using a
barcode scanner. That is why all of the major food chains use them and why more and more
small businesses are using them. Many POS software applications have barcode label
printing capability.
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5. Cash Drawer
Figure 5: Cash Drawer
A cash drawer is essential. It is the major peripheral in any POS system. This cash drawer
opens when sales person ring up a sale, just like a cash register drawer. You can get locking
cash drawers, plastic inserts to separate your bills and coins, plus a slot to stuff your credit
card slips.
6. Receipt Printer
Figure 6: Receipt Printer
As the name implies, this device prints your customer receipts. It can also print out a-z out
tape if required. There are numerous types of receipt printers, categorized-like any other
computer printer by its printing technology and its computer technology.
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7. Pole Display
Figure 7: Pole Display
Customers frequently like to watch you ring up their items. A pole display is a LCD or LED
sign which shows the customer each item that is rung up. It can even flash little advertising
message to those waiting with their purchases.
8. Credit Card Reader
Figure 8: Credit Card Reader
A wireless POS terminal provides on ideal way for customers to pay for goods and services
from anywhere at any time without having to keep on hand or visit a fixed POS location.
Whether it is home delivery, Field service personnel, taxis a wireless POS solution allows a
business to accept credit card and debit card payment easily and securely.
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3.1.2. Software
Operation System
If you have a computer at home, it is most likely classified as a windows machine or a Mac.
There are other types, of course, but these comprise the majority of computers in the home
market. Microsoft windows is the leading operating system for enterprise computers. Kiri
Katha cafe also uses windows 7 Enterprise edition for their POS system.
POS Application Software
The POS application software adds the retail functionality to the POS system. It provides the
user interface and all the features that you will use during the operation of their business.
Later in this guide will enumerate those features and tell you which ones we think are
important.
Their POS application software was designed by SARASI Software Solutions Matara. They
also develop and maintain their POS application software.
Inventory Control Software
Inventory management software is a computer-based system for tracking inventory 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.
3.1.3. Databases
Kiri Katha cafe use databases to keep below information.
To keep information about their loyalty customers.
To keep stock and inventory details.
To record daily transactions (Selling, Purchasing,)
To record Credit and Debit card transactions.
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3.1.4. People
Kiri Katha cafe has 2 salesperson to handle POS system and SARASA software solutions
develop this POS system and POS application software.
3.1.5. Procedures
There are few procedures in Kiri Katha cafe.
Transaction recording procedure
procedure
procedure
procedure
3.1.6. Telecommunication Networks
Local Area Network
Figure 9: Local Area Network diagram
They use a local area network to connect their printer and scanner with POS system. They
use LAN switches, routers, network cables to build this network.
Wide Area Network
Figure 10: Wide Area Network diagram
They use a wide area network to connect their bank when Credit and Debit card transactions.
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3.2. The Systems Concept
Input Process Output
User Details. (Name,
Date of Birth, Address
and etc.)
Registering Users Login Credentials
User Name Login Registered User
Product Name,
Manufacturer,
Manufactured Date,
Expired Date
Add New Product Product ID, Barcode
Product ID Remove Product Removed Status
Product Name,
Product ID
Search Product Availability
Barcode Sell Product Not Available or
Available
Bill Details Refunding Cash Back
Table 1: The System Concepts
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First of all they should enter their cashiers’ details and they should create their
users’ accounts. To start the system they should log in to the system using their user name
and password. Using product name, Manufacturer name, Expired Date and Manufactured
Date they can add new products to the system. After add a product they can obtain Product
ID for that product. Using Product ID number they can remove or modify the product.
SRI LANKA INSTITUTE OF INFORMATION TECHNOLOGY- FACULTY OF BUSINESS
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Point of Sale system procedure.
Figure 11: The system concepts.
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4. Measures for ethics and security of the system
Security
To ensure the security of the system there is a user logging protect. User
logging system enables company to recognize the cashier who issued the bill. In Kiri Katha
cafe operations there are quite a few people access in the system hence this is very useful and
further system has the capability to change the password to strive the integrity as well.
Kiri Katha cafe management can monitor the functions of the users as well as
the time period each user active in the system.
System has a function to lock the cash drawer, to unlock the cash drawer there
should be either transaction or special procedure to execute by the user. As we discussed in
the 2nd paragraph company can track the user who did the transaction or opened the cash
drawer.
Kiri Katha cafe management use below methods to improve their security
1. Every cashier has a password and username to log in to the system.
2. They follow a network security method.
3. Branch manager can log in to the system anytime.
4. POS do not show important details about credit and debit card transactions.
5. Only cashier and branch manager can log in to the system. Other workers cannot log in the
system.
6. Branch manager can supervise the system using online method without any permission.
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Ethics
System has a database of customer’s details as well as system maintains the
orders that customers purchased (especially in whole sale) but these information are secured
and unauthorized users cannot retrieve information.
Kiri Katha cafe offers discounts to their whole sale and retail customers
throughout the entire year. Specially in April and December Company offers highest
percentage of discounts and the total and discount amount as per percentage is clearly shown
in the invoice in order to avoid deviation from the advertised discount the actual discount
offered.
Kiri Katha cafe management use below methods to improve their ethics.
1. They never disclose information about their loyalty customers.
2. Cashiers never exchange their accounts information among them.
3. They never disclose banking information to others.
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5. Development/ acquisition process of the system
Kiri Katha cafe has acquired their POS system from e Sarasa Software
Solutions. The system enables the company to automate the both retail and whole sale
transactions. This system helps company to offer speedy, reliable, convenient and attractive
service to their customers. Kiri Katha cafe has various methods of payments such as cash,
credit card, gift vouchers & etc. This system allows the user to accept any kind of payment.
To develop a system in house business organization has to use significant
amount of resources and comparing to the scope of the business as well as the requirement of
them out sourcing the development of the system is more desirable. To develop a system in
house business requires employees those who have knowledge and expertise to carry out
technical tasks. At the same time business needs more equipment and further consolidation to
prevailing infrastructure. Compared to the cost evolve in the in house development is very
high.
Kiri Katha cafe has general business activities hence there's no requirement
to have a tailor made system. Company has decided to hire the standard system which Sarasa
Software Solutions offers.
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6. Expected benefits from the system
Few years ago business organization really wanted an IS to meet their
requirements such as give expedite, orderly and quality service to their customers. System
enables Business organization to maintain database of their products, stocks, debtors and etc.
Kiri Katha cafe offers several methods of payments for their customers such as cash, credit
cards, and debit cards. This system helps Business organization to maintain accuracy of the
transactions and convenience of recording process. (Ex: - Information about debtors)
Another benefit of the system is recording their transactions and maintaining copies of bills
issues which allows business organization to recall a bill if they need.
Maintaining data about stocks and products prices helps Business
organization to satisfy their customer’s quarries in prompt manner. Kiri Katha cafe
participates Colombo and Jaffna international food festival which is organize by ministry of
cultural affairs annually and they have experienced convenience of this system when their
handling huge number of customers in a lesser time. Business organization says having an
information system helpful to reduce human errors as well as number of staff required and
also to minimize frauds and increase their efficiency. This system helps business organization
throughout their entire process which begins from stock arrival and ends from auditing. Kiri
Katha cafe deals with customer those who have different requirements of invoices (Ex:-
Government institutions required detailed invoices) System has option to select either normal
invoice or larger one more details. Duplicate copy of the bill which prints simultaneously
with the original helps staff to check and tally invoice and goods sold to avoid deviations. If
there is any doubt about a bill management can ask excuses from the cashier involved and
user login password system helps to identify the responsible personnel for a certain bill.
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7. Management of the IS
Kiri Katha cafe has out sourced the POS system. Once that was implemented
company maintains and enter needful data to the system. Entering data such as barcode, item
(product) s' name, price & etc. done by the Kiri Katha cafe. To gain the maximum use of the
POS system it's necessary to maintain it in a proper manner. Sarasa as the developers provide
the technical assistance to the operator while operator is executing slight managerial
functions of the system in order to maintain the system in higher standards.
They upgrade their system and POS software 1time for a year.
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8. Problems/ Issues currently faced with the current IS activities
Business organization has been using this system for more than 2 years and
they have experienced some issues of information system. Food cafe needs people those who
have special training on their system operate the system as well as they have to keep standby
crew in order to use the system continuously when there is an absence of trained employees.
When the staff wants to change the person who is operating the system it takes some time
because they have to execute certain procedures to hand over the system from one employee
to another employee. Once in a while there are some clients have special requirements in the
invoice. In that case business organization has to issue hand bill in order to satisfy their
requirements because the structure of the invoice is fixed and cannot change by the operator.
To run this system the operator needs various hardware such as computer, barcode reader,
receipt, printer and etc. When there is a malfunction of any equipment that may course the
entire system to break down. In order to achieve that kind of situation company maintains
standby set of each equipment and they have to spend money on that equipment also.
Kiri Katha cafe has in house graphic designing section as well as they
outsource the task of cover page designing and barcodes are design and insert at that point.
When there is an issue occurs at the initial stage and that may remain in the system for a long
time and some of them are detectable and some are very hard to identify. Even when they
found some error they have to follow certain procedures which are causing to increase staff’s
work load as well as business organization’s expenditure (Assigning same barcode for
different books.)
The business organization has experienced various issues as we discussed in
above paragraph when they are using the system. The operator has to monitor the system
from the beginning to the end. To minimize errors and use the system at highest efficient way
business organization has to train their employees continuously and also the staff needs better
multi crew coordination among them in order to minimize conflicts between users and the
system and also to give a better service to their customers.
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9. Suggested improvements
We as a group of students following business management degree at SLIIT
have done an assignment regarding the POS system used by Kiri Katha cafe and found some
defects of the existing system and the procedures executed by the user. In order to obtain the
maximum benefits of an IS it's compulsory to have at least few employees to play key roles
which required some sort of ICT knowledge. They should train to handle computer based
information system. Employees do not have sufficient knowledge about IT. We would like to
recommend employees should develop their IT knowledge.
At the moment company doesn't have employees those who are capable to
handle errors (disturbances) generated in the system. They cannot troubleshoot in the system.
We would like to recommend Kiri Katha cafe to hire employees those who have ICT
knowledge. We've seen another issue in the system which is the failures occurring while
carrying out transaction, in order to get rid of that we recommend company to install a new
POS application software.
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10. Conclusion
Kiri Katha cafe is one of the Sri Lanka's leading food café network develop by
Lucky Lanka PLC and throughout this assignment we studied POS system which are used by
them. We as a group of students following business management degree understood the
information system which is inside in the business organization. We visited to the Kiri Katha
café and studied components of the information system, ethics and security of the information
system, management of the information system, problems currently faced with the current IS
activities, development process of the system, expected benefits from the system and many
more about internal information of the system.
In this study we have realized that Kiri Katha cafe obtains more benefits using
the POS system. Accessing the technological environment and obtaining the systems like
POS is really beneficial for any kind of business organization. Furthermore we recognize that
technical support reduces errors, overhead and etc. At the same time company can experience
the privileges such as reliability, convenience and many more. In an ever changing business
environment it is crucial adjust accordingly. We have learnt that IT support is very critical to
every company in order to survive in the market as well as to satisfy their customers’
preferences in speedy, attractive and error freeway.
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11. Lessons learnt
We've carried out a study about an information system which is used by a
food cafe. They are using POS system in order to smoothen their transactions. We have
approached the system in various ways and we studied about benefits obtained by the user,
management of it, development, further improvement they need, hardware and software
needed and etc. We have learnt about computer based information system which is used in
food café. We have learnt about the fundamentals of a POS system as well as protocols of
using it. Furthermore we have learnt that proper management is very important in order to
maintain the system in rather higher standards. In an ever changing business environment
receiving information technology is very useful to reach organizations' goals in efficient
manner. We have learnt about how this system effects on a business as well as we have
identified pros and cons of it as well.
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References
https://en.wikipedia.org/wiki/Point_of_sale
https://www.sans.org/reading-room/whitepapers/bestprac/point-sale-POS-systems-security-
35357
http://www.sarasagroup.net/ [Software Developers]
https://www.cashierlive.com/book-store-POS
http://library.utem.edu.my/index2.php?option=com_docman&task=doc_view&gid=3204&Ite
mid=113
www.ultimatetechnology.com
http://www.barsnstripes.com/docs/POS4beginners.pdf
http://documents.mx/documents/POS-for-beginners.html