RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

CHAPTER 1 RSG Builders Inc. Inventory & Equipment Monitoring System (The Problem and its Background) 1.1 Introduction
In todays business environment, even small and midsized businesses have come to rely on computerized inventory management systems. Certainly, those are plenty of small retail outlets , manufacturers and other business that continue to rely on manual means of inventory tracking due to lack of capital outlay for the purpose. Inventory 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

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

that an employee writes down the information of different materials every time it is transferred in and out of the room. The same case applies in RSG Builders Inc.; and as a result, the inventory system becomes prone to human error and would be more time consuming which will most likely be a loss for the company. Effective monitoring system is an important aspect for a manager; especially that so to on RSG Builders Inc. They are cashed to make consistent, reliable and timely decisions under the challenges of uncertainty, pressure and lack of information. Often, they do not have enough time or (information) reference to make appropriate decisions hence they tend to solve problems using resources within their control. Managers are required as well to ensure inventories of the right items in the current quantities. Over stacking results to waste of money since procuring, storing and accounting for unnecessary items requires time, and costs which could have been allocated on more critical assets.

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

BACKGROUND OF THE COMPANY RSG Builders Inc, is a Construction business type where they have their own warehouse and contacts from their supplier. It is a family business owned by Mr. Rodante Garcia managed by his son Mr. Roland Vincent Garcia. Their limited shares means that the company has shareholders to creditors of the company is limited to the capital originally invested, i.e. the normal value of the shares and any premium paid in return for the issue of the shares by the company. 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

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

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. 1.2 Statement of the Problem The main problem is the frequent loss of items in stock. The warehouse in charge has no means to account for missing items, Recurrence of untraced destinations of materials are usually unexplained. Since are the record are done manually, possibilities of files loss also occurs. At times, wrong entries are recorded resulting to distorted reports. When such instances, occurs it will redound to failure to most set targets. Attempts to meet this challenge are in progress, however the

person entrusted with the tasks has no with the tasks has no appropriate training and understanding on materials handling and storage.

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

On deliveries and purchase receipts haphazardly accomplished forms are common. Reasons being the personnel assigned sign them without consent and as knowledge of a previous arrangement with the warehouse in charge. Purchased items are released by other employee not assigned or involved in the operation. They can also sign for Delivery Receipts. Using their manual system, the company has no record to prove occurrence of transactions. When this happens, items are returned resulting to unsatisfied customers and clients. Sometimes poor handling of items occur which head to damages and defects in view of poor service. The rather slow movement in view of manual listing causes delay to add to the slow production. The process involves unnecessary time consumed which results in the customer long wait. 1.3 System Design Paradigm Introduction The Figure below introduces several techniques that can be apply for locating, pinpointing, and identifying a problem that shows how the system paradigms serve as the philosophical basis for numerous tools, techniques,

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

and methodologies. This identifies the steps how the processing steps required to transform the inputs into the outputs.
INPUT PROCESS OUTPUT

Incoming and Distributio n of Stocks.(Av ailable) Expenditur es

(SDLC)/

System Development Life Cycle

Highly Effective and more suitable data manageme nt

1.) Monitoring available stocks 2.) Summary of Records

FIGURE 1

Figure 1 describes the INPUT that shows how the system will be able to handle all the requirements that are needed especially when updating Incoming and distribution of stocks. PROCESS shows all the techniques that are used to create a system, how it is deeply analyzed & SDLC (System Development Life Cycle) serves as the guide to modify the system

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

properly. OUTPUT shows the progress within the system, it is represented by means of feedback, levels, and rates require a careful distinction between stocks and flows of real physical quantities and of information. 1.4 Objectives of the Study The aim of our proposal system can help the companys productivity, especially on monitoring of items in their warehouse. How this should be done refer to the following. Computerization would be a big boost. Monitoring current items thru computerization can make a big difference. It will shorten the process hence, less time consumed. Logging of particulars as to specific items, supplier, date of transactions, nature, purpose etc., can easily be indicated. Reporting as to deliveries receives to indicate date of transaction, supplier, number of items and other particulars will readily be reflected. Purchase receipts will be separately shown to indicate amounts, items, etc. Equally important of course will be designation of particular employee to man the tasks. It will assure that the records will be done by one person only who would be responsible and accountable as maybe necessary.

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

The FIFO principle should be introduced. To ensure that the current stocks will be able to use properly The segregation of stocks in good condition and those now as well should be noted. The administrator of the system can readily coordinate with the supplier from where defective or damage item originated. Replacement request can easily follow. Inventory can be done daily for a brief look on the computer will provide necessary information immediately. 1.5 Significance of the Study The study will not only be beneficial to us students but also to company executions who can readily refer problems and solutions as suggested. Importance of authorized authority and persons accountable to receive and release items from the warehouse should be noted. It will not only free them from worries as to the status of their stocks (SMFM).

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

The warehouse man will be benefited as well as use of extra to physically count stock will not be necessary. The customer, in view of all these will be satisfied in view of the fast service done to them. This will result in their loyalty and trust, hence they will always come back to be served. 1.6 Scope and Delimitation The System provides monitoring the number of products that is delivered inside and out of the warehouse. It produces a daily report that is needed to be submitted to the Accounting Department to update and make some changes or even the records of income that they accrue. The scope of the study is to mainly focus on providing security to their products using monitoring system that enables the company to monitor deliveries and aims to provide accurate and reliable process on every transaction. The study result into an increase of production which helps the company to give a higher sale. It may also require a person who will handle and monitor the list of materials and equipments. She/he will

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

be responsible for the ordering and releasing of the items to their warehouse. The proposed system can also provide a hard copy or either list of their transactions to easily compute their sales and record of their suppliers from where the materials came from. On the other half, the delimitation of the study is not uploading the system to the internet. It may require a lot of fundamentals which may affect the whole system. The company also suggested not making their system online because their transaction mostly happens on the field and they only have to make a direct call to make transactions. The need for a cashier in charge will be eliminated because the items particulars to include costs are already available. Printing transaction can be made on case to case items particulars to include costs are already available. Printing transaction can be made on case to case basis only. Hence minimizes on cost.

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

1.7 ASSUMPTIONS As of our assumptions, the proposed system might be approved and later be used by our client effectively, not just for our benefits but mostly for them, for its will help the company to be more productive. This will help a company to be more productive in terms of how to maintain a proper monitoring of their stocks. This will also eliminate the slow productivity that the manual system provides for them.

1.8 DESIGN METHODOLOGY Incentives agile development accelerates the delivery of initial business value, and through a process of continuous planning and feedback, is able to ensure that value is continuing to be maximized throughout the development process. As a result of this iterative planning and feedback loop, teams are able to continuously align the procedures, and easily adapting to changing requirements throughout the process. In addition Agile structured is use a set of tools for facilitation and concept analysis.

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

Analysis tools provide objective criteria for the team to compare proposed design concept leading to a better decision earlier in the design process. By measuring and evaluating status based on the undeniable truth of working, testing, is much more accurate visibility into the actual progress of projects is available. Finally, as a result of following an agile process, at the conclusion of the study is effective system that much better addresses the business and customer needs. Adaptive planning, evolutionary development and delivery, a timeboxed iterative approach, and encourages rapid and flexible response to change.

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

FIGURE 2 FIGURE 2, Agile shows where requirements and solutions evolve through collaboration between self-organizing, cross-functional teams. It promotes

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

1.9 DEFINITIONOF TERMS

DELIVERY- Transporting of Items, goods or products or distribution. DELIVERY RECEIPT (DR) - A letter of proof after the transaction is made. A document that has been signed by the person receiving goods to show that they have been delivered a document sent by the post office, telling someone who has sent a letter by recorded delivery that it has been delivered DELIVERY ORDER (DO) A letter that show that list of the order products. A document from which orders the release of the transportation of cargo to another party PURCHASEItems that is ordered or buy. To

obtain ownership of other asset in exchange for money or value.

a security or

PURCHASE RECEIPT- A proof of Purchased Items, and includes has amount of items that is bought. A document which typically shows the date and time a purchase was

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

made, items purchased, amount of purchase price and totals, the name and location of store/entity where the purchases were made, and supplemental information concerning store returns,

the method of payment used and other relevant sales-related information. Sales receipts are often necessary for store returns or exchanges. TRANSACTIONagreement A way of processing the items. between An

a buyer and

a seller to exchange an asset for payment and recorded in the book of accounts. CASHCurrency and coins on hand, bank balances,

and negotiable money orders and checks. Paid by exact amount. CREDITTotal Amount in that is not paid exactly.

A contractual agreement

which

a borrower receives

something of value now and agrees to repay the lender at some later date.

RIZAL TECHNOLOGICAL UNIVERISTY College of Engineering and Industrial Technology

DEFECTS-damage items Want or absence of something necessary for complet eness or perfection; deficiency; opposed tosuperfluity. ADMINISTRATOR- the one who is responsible for systems updates. DATABASE ADMINISTRATOR- the one who uses and updates the system. PURCHASE ORDER- list or record of items being avail