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Chapter 1

Situation Analysis

Today, technology plays a vital role in most, if not all companies worldwide.
Automation and computerization of most processes are very rampant, thus provides a
great advancement in the environment. With these, works become easier, faster and more
reliable, therefore, it saves time and manpower and makes works more convenient.

According to Smith (2006), each year, the average hardware system invests
millions of dollars in hardware products. While hardware sales are expert at evaluating
the efficacy of different variety of lumber, paints, wires, and others, many haven't looked
closely enough at their inventory management processes. In fact, the typical automated
system hardware does not use calculated methods for determining product orders. As a
result, individual hardware average a relatively low 10.2 inventory turns per year, lose
contract compliance opportunities, and continue costly process inefficiencies.

Inventory is basically the total amount of goods and materials held in stock by a
factory, store, and other businesses. An inventory system is a process whereby a business
keeps track of the goods and material it has available. In its simplest sense, it can be done
manually by a count at the end of each day. In this way, it is possible to keep a record of
the goods coming in to the business and goods being sold. In hardware industries,
inventory management system is widely involved in their daily activities. The inventory
needs to be updated frequently.
According to Nephi (2009), when an inventory error occurs, the hardware income
statement and balance sheet are affected, as well as the cost of products that are sold and
the hardwares gross profit. Inventory errors often occur because of shipping terms and
consigned inventory. When an inventory count is understated, the calculation of the
hardwares assets is also understated. Obviously, the reverse situation is also true.
Miscalculating finances can lead to the perception that the hardware sales is being
managed incorrectly or even illegally. Therefore, it is important to understand that strict
accuracy in inventory management, inventory counts, and related financial statements
must be maintained.
Hitler (2007) claims that taking control of inventory is much easier than it was a
few years ago. The right inventory process redesign includes three components:
technology, buyer experience, and change management.
Since manual inventory consumes a lot of time and is prone to errors, it would be
helpful to build a system that will computerize the transactions from acquisition of the
product description to updating the inventory database. The computerized inventory
system will improve employees work efficiency by computerizing 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. The accuracy of the existing system
will also be improved, since the computerized inventory system would eliminate the need
of constantly encoding lengthy details of products by having an inventory database.
From the fact finding of Brown (2006) in his study Hardware Inventory Tracking
System (PITS), he concluded that hardware industries in the United States are looking
for opportunities to enhance their management to improve their customer services. Many
computer technologies have been adopted into their daily routine. The advantage gained
by this industry is that they can provide their services in a better and more effective way.
In the Philippines, the study of Guzman, et al. (2011) aimed to develop and
implement an online inventory and monitoring system or hardware supplies in Oriental
Mindoro. The system also allows for an accurate tracking of inventory records. The new
system provides the users with an efficient and convenient system for inventory of
hardware supplies of the individual hardware of Oriental Mindoro. The system generates
accurate reports and facilitates transactions fast. Being efficient and convenient, the
system improves the hardware user services.
Meanwhile, Jomin, et al. (2013) implemented the computerization of the manual
inventory system of Hardware and Merchandise Distributor. During the course of the
study, they were able to identify problems which occur in the current inventory system of
the company. They came up with an objective, to develop a computerized Inventory
Control System that is highly needed by the company for accurate and efficient recording
of daily products. Out of the tests that were conducted, they came up with solutions and
one of it is to computerize all the transactions made for accurate monitoring and
recording of products. It also allows the display of inventory and purchase order report.
They concluded that through the record and analyses presented, the Inventory Control
System of Boysen Hardware Company should be computerized because it can help them
increase their profits. Therefore, they encourage business owners to use and apply a
computerized Inventory Control System in order to achieve the aims of a business
enthusiast and could help boost the economy in terms of employment.
The Pilorins Hardware Stores mission is to provide quality, affordable, and
accessible services to all. It aims a higher category level from a primary to a secondary
level hardware store to cater to the needs of the people and to provide high technology
facilities for much better hardware services.
Since Pilorins Hardware Store is a small hardware with fewer inventories, the
hardware manually counts inventory through a periodic system. It performs inventory
counts on a daily, weekly, and monthly basis. The existing monitoring system of Pilorins
Hardware Store is a manual process of recording of all the data that they need for their
report such as the paints, nails, lumbers and merchandise, classification, the price, mark-
up price, the description, and other information. Its current inventory system though is a
semi-manual process of recording all hardware supplies with the aid of an electronic
spreadsheet. Still, mistakes happen and it should perform a count once or twice a month
to verify inventory accuracy.
With the abovementioned circumstances, the researchers were challenged to
develop an automated hardware sales and inventory system. It stores inventory
information of hardware supplies, paints, and lumber. The system provides the required
storage information in a faster and more convenient manner by storing a file of the raw
materials and merchandise in a computer system that will lessen the effort of the
hardware facility in its manual inventory every now and then. The system also keeps
track of the status of raw material and lumbers in order to determine its expiration and the
transaction involved.
Statement of the Objectives
The study aims to develop the Pilorins Hardware Store Sales and Inventory
System (PHSSIS).
Specifically, it aims to achieve the following objectives:
1. To identify the problems encountered in the existing hardware sales and inventory
system of Pilorins Hardware Store.
2. To determine the procedures in the existing hardware of Pilorins Hardware Store.
3. To develop the Pilorins Hardware Store Sales and Inventory System (PHSSIS).
4. To determine the usability of the developed Hardware Store Sales and Inventory
System along:
4.1. Usefulness,
4.2. Ease of use,
4.3. Ease of learning, and
4.4. Satisfaction.
Time and Place of the Study
This study will be conducted during the first and second semesters of school year 2016-
2017 at the Pilorins Hardware Store, Talogtog, Dolores, Abra
Definition of Terms

Pilorins Hardware Store Inventory System. It refers to automation of

inventory in different types of supplies.
Problems Encountered in the Existing Hardware Store Sales and Inventory
System. It refers to the manual inventory of owners/managers.
Procedures In the Existing Hardware Store Sales and Inventory System. It

refers to the practice of owners/managers the existing manual.

Development of Pilorins Hardware Store Sales and Inventory System. The

process of developing an inventory systems using Visual Basic 2008 which supports the

Microsoft .NET framework.

Usability of the developed HSSIS. It refers to the program of computers or

design the system to match the requirement of a system needs. Hardware

Store Sales and Inventory System .System. Refers to a program or a software

to be developed.

Usefulness. Computerized sales and inventory systems help

manage products and ensure that transactions are completed

correctly. These tools track products and provide ongoing inventory controls

that reduce shrinkage..Ease of use.It refers to the use of the inventory system to

provide a accessible, faster inventory of supply for the owners/managers.Ease of

Learning. It refers to the owners/managers to learn the inventory system in a easiest

way.Gives them a skilful and knowledgeable by using the system.Satisfaction. It refers

to the costumers satisfaction on how the owners/managers transact in faster and

containment of the product availed.

Chapter 2
Research Design
The descriptive-applied type of research will be used in this study. This study will
use the descriptive design because the problems encountered and the procedures in the
existing hardware store sales and inventory system and the usability of the PHSSIS will
be determined through interview, documentary analysis, and survey questionnaire. The
identification of the mentioned variables will be used as a basis for the development of
the PHSSIS which eventually led the researchers to use the applied type of research
This project study will use the applied research design that deals on design,
development, and evaluation. In connection to this, the researchers will apply the
Extreme Programming (XP) model which has four phases namely, requirements
gathering, software development, small releases, and maintenance. The paradigm in
Figure 1 shows the interaction of the Input-Process-Output (IPO) variables that were used
in the evaluation of the usability of the PHSSIS. The mentioned inputs will be processed
by way of validating in terms of usability to produce a useful, easy to use, easy to learn,
and satisfying PHSSIS.

Research Paradigm
The paradigm in Figure1 shows the interaction of the Input-Process-Output (IPO)

variables which will be used in the development of Pilorins Hardware Store Sales and

Inventory System. The researchers included the problems encountered in the existing

system and the procedures in the existing system.

All the mentioned inputs will be processed by way of conducting an interview,

documentary analysis, and survey questionnaire.

The data which result from the documentary checklist and analysis will be used in

the development of the software.

The output is the Pilorins Hardware Store Sales and Inventory System. The

feedback of the study will be based on the result of the conducting interview and will be

evaluated by the owners/managers.


1.Problems 1. Conducting an HARDWARE
Encountered in the Interview STORESALES
existing system.
2. Documentary
2. Procedures in the analysis INVENTORY
existing system. SYSTEM
3.Administration of
survey questionnare

4. Development of

4. Evaluation of the
developed HSSIS



b.Ease of use

c.Ease of learning


Figure 1. Research Paradigm

Sources of Data
The two owners/managers of in the Pilorins Hardware Store will be taken as the
only respondents of the study. Total enumeration will be employed, thus, only the
owners/managers will be taken.
They were chosen because they could provide needed information about the
problems encountered, procedures in the existing hardware store sales and inventory
system and in the evaluation of the usability of the PHSSIS.
Data Instrumentation
For objective 1, interviews with the owner/managers will be conducted to
determine the problems encountered in the existing sales and inventory system of
Pilorins Hardware Store.
For objective 2, will be employed in the identification of the procedures in the
existing hardware store sales and inventory system of Pilorins Hardware Store. The
researchers will analyze sample inventory reports, pricelist and other documents provided
by the owners/managers.
For objective 3, in the development of the PHSSIS, the researchers will use the
Extreme Programming (XP) model. As introduced by Back in the mid 1990s, extreme
programming is an agile method of software development focused on providing the
highest value for the customer in the fastest way possible. It involves short, tight
iterations of building, and releasing software.
Figure 2. Extreme Programming Model
In the requirements gathering phase, the researchers will identify and analyze
specific information needed based on the user stories in order to develop an effective
hardware store sales and inventory system. They will convert user stories into iterations
that cover a small part of the functionality or features required.
The software development phase will involve coding, testing, and the complete
design of the system. Coding constitutes the most phases in the extreme programming life
cycle. The researchers will use Visual Basic 2008 which supports the Microsoft .NET
framework as the programming language and MySQL as the relational database in
developing the system. Extreme programming integrates testing with development phase
rather than at the end of the development phase. All codes have unit test to eliminate bugs
and the code passes all such unit test before release. In designing, the researchers
considered the user interface and user-friendliness of the system.
In the small releases, the researchers will release the system to the users and they
received feedback from them. Each feedback that specifies revised requirements shall
become the basis of a new design. The process will iterate and the system will be re-
Maintenance phase resembles the final task in the system development life cycle
(SDLC) implementation phase, data conversion, testing, and user training. The system
will be released to the users and training shall be conducted in order for them to learn the
flow of the system.
For objective 4, the researchers will use a survey questionnaire from the concept
of Lund (2001) known as Usefulness, Satisfaction, and Ease of Use (USE) questionnaire
to determine the usability of the Pilorinss Hardware Store. Since the instrument is a
standardized questionnaire and has been used successfully my many companies around
the world and as part of several dissertation projects (Lund, 2001), it is presumed to be
valid and reliable and that no more validation and reliability tests were conducted.
The researchers will personally collect the questionnaire to ensure a one hundred
percent (100%) retrieval.
Data Analysis
The data gathered from the respondents will be analyzed and interpreted using the
statistical treatment weighted mean.
In terms of the usability of the PHSSIS, the data gathered will be interpreted by
using the Likert scale. It is a five (5)-point scale with corresponding descriptive
equivalent as presented below.

Point Scale Statistical Range Descriptive Equivalent Descriptive

Rating (DER) Interpretation
5 4.20-5.00 Strongly Agree Usable
4 3.40-4.19 Agree Usable
3 2.60-3.39 Neutral Usable
2 1.80-2.59 Disagree Not Usable
1 1.00-1.79 Strongly Disagree Not Usable
The variables with responses within the mean range of 2.60 to 5.00 will be
interpreted as Usable while those variables with responses within the mean range of 1.00
to 2.59 will be considered as Not Usable.

Smith (2006),

Nephi (2009),

Hitler (2007)

Brown (2006)

Guzman, et al. (2011)

Jomin, et al. (2013)