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MELVIN CLOTHING INC.

System Proposal
1

INTRODUCTION

Can be
rd

found at 3
floor Farmers
Plaza Cubao,
Quezon City.

SYSTEM IDENTIFICATION
The system used by Melvin Clothings Inc. is Manual Recording which means to
record all the business activities in the BIR certified Ledger manually.

OBJECTIVE OF THE SYSTEM


The objective is to record the day to day activities of the
business.

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COMPONENTS OF THE SYSTEM

Main Branch

-The main branch supplies the good to the other Branch.

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BIR CERTIFIED LEDGER

-Contain day to day records of different business transaction.

CUBAO BRANCH

-Receives goods item from the main branch and uses manual recording system.

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CUSTOMER

-Buys goods to Melvin Clothing Inc.

CASHIER

-Receives payments from the customer and record the sales to the ledger at the end of
the day.

FLOW OF THE SYSTEM


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The main branch of Melvin Clothings Inc. supplies the clothes to its branch in
Farmers Plaza then the supplied clothes will be recorded in the branchs ledger
after recording, it will be available for sale.
As the customer buys clothes in the store he will pay it to the cashier then,
In the end of the day, all sales will be recorded in stores ledger.

PROBLEMS IDENTIFIED IN THE SYSTEM

Can be subject to discrepancies such as overstatement or understatement in the


General Ledger.
Time Consuming
No multiple copies / backup
Performing Searches

Candidate Proposals

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1.

2.

3.
3.

This feature creates excellent User-friendly environment.


Table creation for database management is easily done here.
That is direct interaction with tables created and editing is
possible. Table creation is done directly by typing its name,
property, etc., this leads to easy operation whereas other
have complex syntaxes for creating these. There is no need
for the user to have high programming knowledge for using
MS-Access. So, users with basic computer knowledge can
use it.

Microsoft project Software is an application which is produced by


Microsoft. It is project management software that is mainly used to
create plans, monitor progress, analysis workloads, designate
resources to tasks and manage budgets. The software also helps in
establishing critical path schedules and may also be helpful in
formulating critical chain and event chain methodology using third
party add-ons. It also helps in enable schedules to be resource
leveled while the chains are displayed in Gantt chart. Also, the
ability to view and retrieve information is decided by the user's
class. Other users are able to access information such as views,
calendars, filters and fields, and tables.

This
feature
creates
excellent
User-friendly
environment. Table creation for database management
is easily done here. That is direct interaction with tables
created and editing are possible. Table creation is done
directly by typing its name, property, etc., this leads to
easy operation whereas other have complex syntaxes
for creating these. There is no need for the user to have
high programming knowledge for using MS-Access. So,
users with basic computer knowledge can use it.

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PROPOSED
SYSTEM
MS-Access has
very easy operating

procedure compared to
other database management tools that are available. Also this
is fairly cheaper and can be installed in most of the computers.
Another advantage is, it provides excellent graphical user
interface (GUI) whereas most database management tools
provide console operating interface (CUI). This feature creates
excellent User-friendly environment. Table creation for
database management is easily done here. That is direct
interaction with tables created and editing are possible. Table
creation is done directly by typing its name, property, etc., this
leads to easy operation whereas other have complex syntaxes
for creating these. There is no need for the user to have high
programming knowledge for using MS-Access. So, users with
basic computer knowledge can use it..

As we compare all the candidate systems, weve


concluded that MS Access is the best system for
the Melvin Clothings Inc. because this system is
user friendly which means that anyone can use it
unlike the MS Project that is complicated.

Proposed System

System Proposal

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OBJECTIVES OF THE PROPOSED SYSTEM

To input less error data.

To record day to day business activities in a faster way.

To produce multiple copies

To search files easily

COMPONENTS OF THE PROPOSED SYSTEM

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1.

-Because of the new system, the main branch supplies goods faster.

2.
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-Receives payment from the customer and send the sale electronically.

3.

-The one who


buys the goods.

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4.

-Receives goods from the main branch and now using compute based recording system

5.

-Computer based system which contains all the business transactions.

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FLOW OF THE PROPOSED SYSTEM

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FLOW OF THE NEW SYSTEM

The main branch of Melvin Clothing Inc. supplies the goods to its branch in
Cubao, all the data are transferred using the new system then it will be available for
sale. As the customer buys a good he/she will pay it to the cahier and at the end of the
day, all transaction will be transferred to the new system.

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Sample of the System

Using the MS
Access the
Melvin Clothing
Inc. can now
easily add new
goods from the
supplier, search
goods if it is
available or not
and delete goods
if wrong input.

This is the sample


inventory system of the
Melvin Clothing Inc. after
searching the goods, this
will be the output, as you
can see in the last column,
it informs the Data Encoder
if the goods are available
or not.

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DIFFERENT COST OF THE PROPOSED SYSTEM

DEVELOPMENTAL COST
- For the license of the new system
- Wage of the Data Encoder who will use the new system
- A computer is needed to install the new system.

TANGIBLE OR INTANGIBLE COST AND BENEFIT


TANGIBLE COST

purchase of the new system


new computer
salary of Data Encoder

TANGIBLE BENEFIT

Producing output which error free


is.

INTANGIBLE BENEFIT
INTANGIBLE COST

Occasional breakdown of the


system

The Customers are now more


satisfied now how the Melvin
Clothing handle its customers
Improve company status

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Hardware

3,400.00

Software

23,500.00

Personnel

10,000.00

10,000.00

Maintenanc
e

5,000.00

5,000.00

5,000.00

Cost at
month end

41,900.00

15,000.00

15,000.00

Cumulative
costs

41,900.00

56,900.00

71,900.00

10,000.00

COST AND BENEFIT ANALYSIS

COST FOR THE PROPOSED SYSTEM

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COST AND BENEFIT ANALYSIS


BENEFITS FOR THE PROPOSED SYSTEM

BENEFI MONT MONT MONT


H
H
H
TS
1

10,000.00

10,000.00

Increase in
sales

10,000.00

Benefits at
month end

10,000.00

10,000.00

10,000.00

Cumulative
benefits

10,000.00

20,000.00

30,000.00

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BREAKDOWN OF COSTS

COST

COST PER
UNIT

QUANTITY

TOTAL COST

Windows XP Professional

10,000.00

10,000.00

MS Access Software

25,000.00

25,000.00

Development

5,000.00

5,000.00

Data Encoder

50,000.00

50,000.00

Developer

5,000.00

5,000.00

SOFTWARE

HARDWARE
Computer

TOTAL COST

115,000.00

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Benefits
Expected increase in sales:
month

10,000 a

Sales earned in a month:


= 25,000

15,000 + 10,000

For three months:


75,000

25,000 x 3 =

Now using net present value


Net present value

Loss %

75,000 115,000

-32% in three months

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Fact Finding Techniques

ON SITE OBSERVATION

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We, the analysts wanted to know how


the Melvin Clothing Inc. functions. So we
visited and observed how the staff record
their inventories and we found out that
they only use Ledger which is certified by
BIR.
From site visit, our group had a good
understanding on how the said business
functions. After that, we also performed
some personal interview to have more

INTERVIEW
ANALYSTS INTERVIEW WITH OIC
Analyst : Good day mam!, we are from
Technological Institute of the Philippines
Quezon City and we are conducting a study
about the system that used in a business,
so can we ask you some questions about
the system that you used here? Dont worry
mam this is for academic purposes only.
OIC : Sure! Do come in.
Analyst : are you using any kind of system
in recording day to day business activities?
OIC : we are not using any computer-based
system, we do it manually by using the
ledger which is certified by BIR.
Analyst : have you encountered any
problem in recording ?
OIC : yes we've encountered problems , like
discrepancies.
Analyst : do you have any back- up files or
copies in case of fortuitous events ?
OIC : none , we dont anticipate such events
.
Analyst : are you open in using computerbased system if it will be implemented ?
Analyst : of course we are .

FACT FINDING TECHNIQUE

DECISION TREE

D
E
C
I
S
I
O
N

After the interview with the OIC


of Melvin Clothings Inc. weve
decided to propose a computer
based inventory system to
record their day to day business
activities.

DECISION TREE

Shaw Branch

1
Y

2
N

Cubao Branch

Type of Clothes

Supplier

Main Branch

1
Y

2
N

MS Access

Branches who
sent request

No Request

1
Y

2
Y

Sales

Sold Goods

Different
Branches

X
Unsold Goods
MS Access

Remain

Main Branch

Graphical Data