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TITLE DEFENSE FORM

SECTION BSIT32C GROUP NO.


LEADER De Castro, Janson L.
MEMBERS Gatchalian, Elhinor M.
Ramos, Arniel B.
Santos, Christian P.

DATE 05-09-17 TIME ROOM

TITLE NO.: ___


I. GENERAL SUBJECT AREA: SOFTWARE DEVELOPMENT

II. SPECIFIC TOPIC: POINT OF SALES AND WAREHOUSE INFORMATION


MANAGEMENT SYSTEM FOR M. AYROSO LUMBER AND HARDWARE INC.

III. DEFINITION OF THE TOPIC:

3.1 Project Context

A warehouse management system (WMS) whose primary goal is to manage the


movement and storage of products within a warehouse, and handle the connected
transactions is a main part of the supply chain. WMS also manages the stock based on real-
time information about the status of products and storage locations. There is no doubt that
WMS is extremely significant for most business. WMS can be an independent system or
modules of an Enterprise Resource Planning system or supply chain execution suite, which
provides an efficient, productive and accurate way to manage a warehouse.

M. Ayroso Lumber and Hardware Inc. aims to be the leading one-stop shop that
supports all your construction needs. The company and its people are committed towards
providing the customers the best service and most-suited construction material that would
need the customers budget.

M. Ayroso Lumber and Hardware Inc. is a corporation which incorporated last


August 28, 2008. The company has long been running and dominating the construction
retail industry in Bulacan since 1940s and a surviving entity of Bocaue Lumber Hardware
(BLH).

In the year 2002, under the new management of Mr. Patrick and Mrs. Melissa
Ayroso, the use of computers and recording of transactions using an Excel Spreadsheet
was introduced. The hardware store is located at the town proper of Bocaue, Bulacan,
Philippines two kilometers from NLEX (North Luzon Express Way) Bocaue Exit.
In 2007, the management felt the need to integrate the Inventory System of the
company due to increasing of operation, from MEGA POS the companys software
changed to POS in 2009 to resolve the companys current dilemma in inventory system.

The company currently has more than 4,000 Shelve Keeping Units (SKU). It is a
wholesale/retail company with the clients from North Luzon provinces such as Isabela,
Cagayan, Quirino, Ifugao, Nueva Vizcaya, Pangasinan, Tarlac, and Pampanga. Cities such
as Baguio, Cauyan, and Santiago. Regarding in Bulacan, the company has close to eighty
store clients and reaches almost every town of Bulacan in a weekly basis.

The company has three separated warehouses with different set of items each
warehouse. It is two to three kilometers away from the hardware store. That is why it is
hard for the company to have the inventory every day or every week even if they want it
also.

When the company orders an item to sell from the supplier, the head office
personnel will issue a purchasing order (PO) and ask for the approval of the owner. If the
owner approves the PO the office staff may now send it to the supplier. It may be via email,
fax, or call. After sending the PO to the supplier, the supplier will give a schedule for the
delivery of the items.

Upon the arrival of the stocks ordered, the warehouse staff counts the items and
matches with Purchase Order, then inspect the quality of items. After the inspection, items
are properly filed on allocated lot for the items received. If it is a regular order of the store
from the supplier, the warehouse staff must fill up the Material Receiving Report (MRR).
If it is from warehouse to main store or warehouse to warehouse, the company uses a
transfer slip. It is used if items are running out of stocks from the main store and if items
are coming in to the store. The return slip will be issued if the items delivered to the
customer returned to the store. It may be because of the suddenly change of mind of the
customer or the items are defective. Regardless if it is a regular order to receive from the
supplier, a transfer item from any of the warehouses, and returned items, the warehouse
staff must record and update the transactions happened and the items coming in in the stock
card. The guard on duty also records the items received regardless if it is a regular order to
receive from the supplier, a transfer item from any of the warehouses, and returned items,
and the other information such as the date, guard on duty, time in and out of the delivery
of the supplier, company name and receipt number in the log book. At the end of the day,
the warehouse staff accumulates all the MRR and prepare the documents for the
transmission to the head office. The original copy of the MRR with the suppliers receipt
attached on it will be given to the head office personnel and its carbon copy will be kept
by the warehouse staff. The head office personnel check the MRR, the suppliers receipt,
and purchase order (PO). Before recording the items to the point of sale (POS) and a back-
up in the Excel Spreadsheet Inventory template.
On the other hand, there were two slips involved in moving the items from
warehouse to main store and warehouse to customers. For the outgoing of the items, the
front liner checks for the availability of the stocks of the items ordered via phone call.
When the items are not available on the Main store but available on the other warehouses,
a Transfer Slip form will be issued by the front liner and ask for the approval of the owner.
The other slip is the withdrawal slip. The company uses it when the item ordered is not in
the main store and it is needed to pick up by the delivery team from the warehouse. The
delivery team will return to the store for the final inspection of the items and for the
issuance of the delivery receipts (DR) and then deliver it to the customer. The front liner is
in charge of issuing the either of the slips. Since an item will be release from the warehouse,
the ordered item will be deducted by the warehouse staff who is in charge for it and update
the stock card. The guard on duty also records the transaction held in the log book. The
head office personnel upon receiving the documents of the delivered items posts the
transaction to the POS then file the documents.

In the production, there were three items involved. These are roofs, lumbers and
hollow blocks. For the roofs, the company purchases plane roofs from their supplier. The
only thing they do in the production is that the company makes a customized roof for their
customers. For the lumbers, the company purchases a number of lumbers and cut it on what
their customers orders. The company also sells hollow blocks but for now they refrain
from producing because they have no hollow blockers. In every transaction, there will be
a production tag form involved. It is provided by the head office personnel and will be
given to the customers. The head office personnel will fill up the production tag form. After
that, the form must be brought to the office staff as a proof that there was a transaction
happened.

The company does the inventory every month but there were times that it depends
on the command of the owner. When the front liners check out that a specific item is
running out of stock, it is the time where the owner must be informed so that the company
can purchase from the supplier.

In terms of conducting the inventory of the items, the employees do it manually.


Starting from the front liner up to the delivery team measurements are item by item. There
were cases that the staffs are having hard time counting and doing the inventory of all the
items. There were also cases that the inventory is not that accurately done for the very
reason of misplacements of documents and receipts. Hence, it was being found but then
again it consumes a lot of time. There are also some possibilities of manipulating the record
of the products or other materials. There may be high risk of errors on the process of
inventory of the store.

3.2 Objectives of the Study


3.2.1 General Objectives

The general objectives of this study are to develop a Warehouse Information


Management System for M. Ayroso Lumber and Hardware Inc. that manages and monitors
the Warehouse Management including the information of the suppliers.

3.2.2 Specific Objectives

These are the following specific objectives of Enterprise Resource Planning


System for M. Ayroso Lumber and Hardware Inc.

1. To implement a system that can monitor the accurate status of the items in each
warehouse.
2. To create a system that will integrate the QR Scanner for managing the
products.
3. To develop a system that supports the large amount data records and prevent
data loss.
4. To develop a system that generates reliable and accurate reports such as
inventory and delivery transactions, and other reports.

3.3 Purpose and Description

The following individual will benefit on this study.

3.3.1 The Owner

The system will help the owner to monitor the tracks of inventory levels

of the business through the system's accurate and reliable inventory reports.

3.3.2 The Company

The Company will be the main beneficiary of the study. It will provide a system
that the company can actually use for a long term. This study can make their warehouse
management process faster and more reliable.

3.3.3 The Employees


The employee is also the one of the beneficiary of the system. It will lessen the
pressure to provide an accurate and reliable inventory reports.

3.3.4 The Proponents

The proponents may enhance their programming skills. And it can be also for the
fulfilment of the proponents for their major requirement to pass.

3.3.5 The Future Researchers

The future researchers will also benefit the study for those who will make a similar
system. The future researchers can make this study as the basis, reference, and related
literature.

3.4 Scope and Delimitation of the Study

The system defines which needs it addresses, including valuing the inventory,
measuring the change in inventory and planning for future inventory levels. Together the
inventory values and level changes, it allows the company to plan for future needs.
Additional to that, all data or information that currently stored in the drawers or racks will
be transfer to the database system that will be safely saved in the computer.

The system set up in the main store is in a LAN-Based connection. The devices in
the main store are all computers. The computer for the issuance of slips and forms is
accessed by the two store dispatchers and the warehouse staffs computer are connected to
the main server. The administrator was able to access the main server. In case the
connection of the computers in the main store was gone, the users can still view the level
of the stocks. The front liner was able to issue the slips and forms such as withdrawal slip,
return slip, and transfer slip. The head office personnel only accept all the reports such as
MRR and others documents that the warehouse staff has. The head office personnel keep
the documents by saving it to the database. The front liner was able to categorized and
input the information such as quantity, item description, date ordered, date delivered (if
scheduled to deliver), and name of the front liner in the computer. When the data has been
saved to the database it will be deducted to the inventory in the main store. Each warehouse
has one computer on it. The connection of these computers is through internet. Unlike in
the main store, if the connection was gone the system still able to show the level of stocks
but it cannot be updated and it loses its connection from the main server. Additional to that,
notification will be shown informing that the system is off line.
The Warehouse Information Management System for M. Ayroso Lumber and
Hardware Inc. is composed of the following module:

Warehouse management module, the module was able to manage the following
features: (1) The system notifies the warehouse staff if there is a schedule for receiving
deliveries from suppliers. The system will notify again the system a day before the
transaction for the preparation of the deliveries to the customer while when receiving it is
just to inform the warehouse that there will be a delivery from the supplier. (2) The system
can modify records such as products that contain information of each item, supplier,
category and manufacturer. The product information of each automatically retrieve and
identify through the use of QR code scanner. (3) Managing inventory which includes
adding, updating and monitoring the critical status of product. After receiving the deliveries
from the supplier, the warehouse staff will now update the inventory list by inputting all
the received items to the system. While when the company releases an item to deliver to
the customer, the system automatically updates the inventory and it will be deducted only
on the day of the transaction. (4) Ranks the most bought items per week. (5) Shelve
Keeping Units (SKU) creation for the new items. (6) Data Reports such as delivery and
inventory reports. (7) Tracking of inventory levels. When the system tracks that the
inventory of an item is running out of stock, there will be a notification about it. (8) The
system also records the returned and defective items. The companys production involves
only three items. These are lumber, hollow blocks, and galvanize iron sheet. The system
was able to do the following functions: (1) Record the production of the items such as
lumbers, galvanize iron sheet, and hollow blocks. (2) Categorize items according to its
respective categories. (3) Monitor the stock of the products. (4) It can monitor all the
materials needed if it is enough before producing the products (hollow blocks). (5)
Notification for critical items both raw and finished products. (6) The module was able to
set the sizes for galvanize iron sheets and lumbers. (7) Automatically computes the
expenses for the used items to produce the product and its selling price. (8) It can compute
the expected total number of hollow blocks from the amount of raw materials set. (9) This
module was able to maintain records such as products and supplier.

For the purchasing order module, the system can be access by the office staff. (1)
The system was able to view the history of the transactions and the current orders of the
company including the name of the suppliers. (2) The system has a module information for
regular supplier and was able to view the items the supplier sells and the items the company
bought. (3) The system generates a PO form and then the office now can now input the
items ordered. The office staff will now print out the form and ask for the approval of the
owner. If it is approved, it will now be fax to the supplier. The company will be informed
by the supplier on when will be the schedule for the delivery. When the supplier set a date
for the delivery, (4) the system was able to notify the warehouse management module that
the company has to receive a delivery on that date.
The system can access only by the System Administrator. The administrator was
able to add and update user account for the new employee, deactivate and monitors all the
active user that logs on the system. The system was able to do the following functions: (1)
It can maintain the suppliers information. (2) It has a backup and restore for saving the
information and data in case of hardware, software failure, and another catastrophe. (3)
The system has an audit trail to provide a complete history of adding, editing or updating
and archiving data from the system. (4) The administrator was able to view all the
transaction and can receive notifications if an item is running out of stock. (5) It can
generate reports such as inventory reports including the daily, weekly, monthly, and
annually.

The system is limited in updating the inventory of the stocks. If it hasnt a


connection at all it cannot be updated.