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A Project Report On Software Automation of SHM Group
A Project Report On Software Automation of SHM Group
ASSIGNMENT ON
This Report presented to the faculty of Business Administration in Partial Fulfillment of the
Requirements for the Degree of Executive Masters of Business Administration (EMBA)
Submitted By:
Name ID Signature
S M SHARIFUL ISLAM 20-91800-2
MD HASIB UL ALAM 20-91741-2
MD IQBAL MAHMUD 20-91792-2
Submitted To:
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INTRODUCTION
2. SHM Group started its operation in 2005 as processors of fruit and vegetable in
Bangladesh and in 2011, SHM GROUP becomes one of the biggest business groups in
Bangladesh. SHM Group is currently one of the most admired food & beverages brand
among the millions of people of Bangladesh and other 23 countries of the world where
SHM Group Products are regularly being exported. SHM Group comparative advantage as
an economy lies in agriculture. They believe the way to economic prosperity is through
agro-business. SHM stands for “Shorif, Hasib and Mahmud”
4. Today consumers of SHM Group not only value “SHM Group” for its authentic
refreshing juice drinks products, but also for its mouth-watering quality confectionery
products with high visual appeal and exciting texture and intend to expand their presence
to every corner of the world and strive to make “SHM Group” a truly international brand
to be recognized globally.
c. SHM GROUP’S AIM: “To generate employment and earn dignity and self-
respect for our competitors”.
a. Consumer care.
b. Supplier care.
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c. Employee care.
d. Trade care.
6. SHM Group puts a lot of importance on their employees. They always try to recruit
efficient, dedicated, creative and hardworking employees for their organization. Equal
opportunity is given in both male and female workers. Their recruitment structure is very
developed and fair, so that they could build a strong team of employees. After the
recruitment SHM Group provides them proper training to develop working skills, good
salary, commission on the profit, reward among the best employees and many more. They
consider the employees as asset. From one example about their responsibility is; they
always try to give salary before 29th day of the month, so that the employees don’t have to
suffer from any kind of financial problem. There is a huge amount of employees in SHM
Group. The number of employee details is given below:
Management Pyramid
INITIAL INVESTIGATION
The Environment
7. SHM Group is having good corporate culture in their office. Their workers have a
good job satisfaction among them. But some issues are arising sometimes which is
hampering the environment. Management are often facing problem to tracking their
inventory, warehouse controls, managing warehouse space. SHM follows first in first out
inventory management system. At some point, it becomes a huge challenge for
management to manage it manually.
8. Presently we are flowing some of the most commonly used calculations on an Excel
inventory spreadsheet. Those are Quantity in stock, Purchase costs, Inventory value,
Quantity in reorder. To avoid mistakes, we carried out audits and reviews our inventory
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every month. But it becomes huge challenge for us because our inventory moved
frequently between different locations.
Needs
10. SHM Group needs to introduce automated inventory management system and
accounting software. Automation has taken every industry by storm. Automation means
improving efficiency of work done by humans and difficult parts to be done by machines.
It aims at increasing the accuracy, quality, and quantity of output along with cost-saving.
Inventory Management is one area where there are problems of accuracy, speed and are
needed to be solved. It is obvious that in order to thrive in this market scenario inventory
managers have to keep updated with the latest innovations. As we are handling items with
expiration dates, like food and beverage, they can become rotten or unusable if not sold in
time. And spoiled products mean our investments go down the drain, along with your
potential profits. So a solid inventory management system can be your front line of
defense against spoilage. If we have real-time data to know the lifecycle of our stock, and
our warehouse workers can organize items to ensure older products get sold first. Dead
stock are items that can’t be sold for a number of other reasons: they’ve gone out of style,
out of season, or the products become otherwise irrelevant. Often an item is declared
“dead” after sitting on a shelf for 12 months. Again, an efficient inventory management
system will provide the knowledge we need to order the right amount of these particular
items. Sales reports can aid in recognizing if an item is dead weight before we buy it.
These reports will be very useful for us without wasting time. Warehousing expenses
fluctuate, based upon how much we store during a given season. When our store has too
many products at once or ends up with a product that’s difficult to sell, our storage costs
will go up. An inventory management system can help forecast what items sell and what
doesn’t, as well as how many sold. This accurate forecasting will help us to make more
informed purchasing decisions, avoiding high storage costs and saving your business
money.
Symptoms
11. Here are a few symptoms, we faced with excel inventory management and
accounting system:
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Mishandling of goods leading to breakage and loss.
Complaints from customers about delayed delivery, broken goods, wrong shipment,
etc.
Lost customers
Problem Definition
S - Specific. Many errors are taking place for not having automation system in inventory
management and accounting system. Our production, profit and waste management is
suffering for not having a software for this. we want to launch a Enterprise resource
planning (ERP) software for better output in inventory and accounting system.
M - Measurable: Creating a software for our company will require a lot of resources. To
make it worthwhile, we need to compile huge data and a team who will make the module
for software. We will need money for preparing this software where 50% will be paid with
work order.
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A - Achievable: The accounting and inventory management departments will be able to
manage their work in faster way. Various repot will be generated from this software which
will help the management to take decision faster. Production, waste management and
space management in warehouse will be more smooth. Accounting department will be
able to make faster loss and profit calculation. It will help them to prepare the forecast of
budgeting.
T - Time-Bound: In order to achieve more profit, we need to activate this software in our
company within this year. Software developing company must provide the software within
45 working days. Users from our company need to be trained immediately. All our data
need to input the software which will take much time.
Objectives
Statement of Work
14. For having central control and avoiding errors, SHM Group will introduce a
software for inventory management and accounting system.
Proposal requirements
15. For this project work, SHM Group have some requirements from vendor. If any
vendor fulfills the below requirements, SHM Group will make the agreement with them
for this project work:
Total cost of the project should be less than four lacs BDT.
Total duration of the project work must be within 90 days.
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Payment method will be by cheque. 50% of the total cost will be given with the
work order. Rest of the 50% will be given after handing over the project.
Software must have following provisions:
Project wise material purchase
Project wise material requisition, receipt and use
Project to project material transfer and damage information
Project, item wise cost analysis
Material wise inventory and cost
SR wise Summary Report
Stock Report (Date Between)
Stock Reports with Price
Issue Reports (Date wise, Product wise, SR wise)
Purchase reports (Date wise, Product wise, Supplier wise)
Chart of Accounts
Voucher Entry
Voucher Report
Account wise Ledger Report, sub ledger report
Cash Book
Bank Book
Trail Balance
Profit Loss or Income Expense
Receive Payment
Balance Sheet
Contractual provisions
16. SHM Group and software developer company will have following contractual
provisions:
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Software Developer company shall give development update of the Software to the
SHM Group in every week and they will also send a demo version of the Software
within 30 working days.
Software Developer company shall ensure the timely delivery of the Software and
the software license to the SHM Group no later than 80 (eighty) days after taking
the order from us.
Software Developer company shall bear the responsibility to train the employees of
the SHM Group in order to operate the Software in the correct manner and with
ease.
SHM Group shall hold all application rights in the Software and exercise its right as
the complete and exclusive owner of it after the delivery and installation of the
Software and the software license has been completed.
The Warranty period shall be effective for only 3 (three) Months commencing from
the date of installation of the Software. During this period, Software Developer
company shall provide service, free of charge, to the SHM Group for any kind of
technical support required by us. The SHM Group shall provide Tk. 3,000on a
monthly basis as a service charge for any technical support required after the expiry
of the warranty period.
After successful installation of the Software, if the SHM Group is facing difficulty
with the operation of the Software due to any bug or glitch, it is Software Developer
company’s responsibility to fix the bug or glitch and ensure smooth functioning and
operation of the Software.
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programming Java,C#,Ruby, PHP
languages
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Language LINQ 4.3.0 LINQ is uniform query syntax in C#
Integrated and VB.NET used to save and retrieve
Query data from different sources
Technical capabilities
Vendor experience and Quality
Project approach
Total price
Customer success practices
Reputation and customer references
Social policies
Legal and Data security
Terms and conditions
Background/Experience
Cost-Benefit Analysis
19. A cost-benefit analysis is the process of comparing the projected or estimated costs
and benefits associated with a project decision to determine whether it makes sense from a
business perspective. Generally speaking, cost-benefit analysis involves tallying up all
costs of a project or decision and subtracting that amount from the total projected benefits
of the project or decision. If the projected benefits outweigh the costs, you could argue
that the decision is a good one to make. If, on the other hand, the costs outweigh the
benefits, then a company may want to rethink the decision or project. When tallying costs,
you’ll likely begin with direct costs, which include expenses directly related to the
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production or development of a product or service. Labor costs, manufacturing costs,
materials costs, and inventory costs are all examples of direct costs. But it’s also important
to go beyond the obvious. Other cost categories you must account for includes:
a. Cost.
Direct Costs: Development of the software will cost 1,70,000 tk. Indirect Costs:
These are typically fixed expenses, such as utilities and rent that contribute to the
overhead of conducting business. In this case this is previously fixed. So no new
cost will be required.
Intangible Costs: These are any costs that are difficult to measure and quantify.
Examples may include decreases in productivity levels while a new business
process is rolled out, or reduced customer satisfaction after a change in customer
service processes that leads to fewer repeat buys. In this case this is previously
fixed. So no new cost will be required.
b. Benefits. Direct: For example, increased revenue as the inventory will be
automatically updated and HR functions will take less time. Indirect: Such as
increased customer interest in your business or brand. Intangible: For example,
improved employee morale as HR functions will be fast. Competitive: For
example, being a first-mover within an industry or vertical.
c. For Our Project. In our case, our company is adding two new software. The
CEO of our company decides to run a cost benefit analysis to determine whether the
decision will be beneficial to the company - and to what degree. The company is
analyzing a time horizon of one year, and estimates that revenue would increase
some 50% if the two software are installed. On the cost side of the equation, the we
must examine the cost of the two software- estimated at 1,70,000 tk. Additionally,
there is the cost of additional maintenance charge for software around per month
10000 tk , in a year 1,20,000 tk. The total direct and indirect costs would total
around 2,90,000 tk. When calculating benefits, the CEO would examine the benefit
of additional revenue within a 12 month period, estimated around 5,00,000 tk.
Additionally, the increase in product quality resulting from the new software (and
therefore presumed customer satisfaction) would increase by 10%, adding an
estimated 50,000 tk in value to the company. In total, the benefits would be
5,50,000 tk. Using the benefit-cost ratio equation, that would be BCR =
5,50,000/2,90,000, or 1.89. Given that the value is positive (and the total benefits
are greater than the total costs), the cost benefit analysis indicates the decision to
install two additional software would be a beneficial move for the company.
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Description of Task Effort in Days Days Authority
Needs Analysis and User System Analyst and 10 Vendors &
requirements Study. Executive officer concerned SHM group
the Project
Preparation of Needs Analysis 1 System Analyst 5 Vendors
Report & System Design.
Approval of Design Executive officer concerned - SHM group
the Project
System Development 1 System Analyst 5 Vendors
Coding & Testing 4 Programmers & 2 System 30 Vendors
Analyst
Beta release and Training 2 officers 5 Vendors
Final approval Executive officer concerned - SHM group
the Project
Final tuning and Final Version 2 Programmers & 1 System 5 Vendors
Delivery Analyst
22. Software risk encompasses the probability of occurrence for uncertain events and
their potential for loss within an organization. Risk management has become an important
component of software development as organizations continue to implement more
applications across a multiple technology, multi-tiered environment. Typically, software
risk is viewed as a combination of robustness, performance efficiency, security and
transactional risk propagated throughout the system. Also there are potential risks that
automation technology will ultimately subjugate rather than serve humankind. The risks
include the possibility that workers will become slaves to automated machines, that the
privacy of humans will be invaded by vast computer data networks, that human error in
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the management of technology will somehow endanger civilization, and that society will
become dependent on automation for its economic well-being.
Assumptions:
(1) Delivery: Within 60 (Sixty) working days after getting work order.
(2) Warranty: 2 (Two) Months from the date of installation.
(3) Technical Support: After warranty period UCAS will provide all technical support
subject to Service
(4) Contact between Vendors & SHM Group.
(5) Monthly service charge shall be 10,000/= (Tk. Ten Thousands) only.
24. Events Of Force Majeure: Neither party shall be considered in default in the
performance of its obligations under this Agreement – other than its obligation to pay any
sum – or be liable in damages or otherwise for any failure or delay in performance that is
due to any of the following: strikes, lockouts, concerted acts of workmen or other
industrial disturbances, fires, explosions, floods or other natural catastrophes, civil
disturbance, riots or armed conflict whether declared or undeclared, curtailment, shortage,
rationing or allocation of normal sources of supply labor, materials, transportation, energy
or utilities, accidents, acts of God, delays of subcontractors or vendors, sufferance of or
voluntary compliance with acts of government and government regulations (whether valid
or invalid), embargoes, or any other similar or dissimilar cause which is beyond the
reasonable control of the party affected and which makes performance commercially
impracticable.
(1) Vendors shall develop the Software described in which includes Accounts,
Human Resource, Stock & Store department and HR integration with Accounts, Stock &
Store integration with Accounts & credit realization with Accounts.
(2). Vendors shall develop the Software in a manner desirable to the Second Party
and where each Type shall be developed separately and distinctively having their own
exclusive nature. Second Party shall have the right to make amendments when necessary
and shall inform vendors of such amendments.
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misappropriation or breach of trust of the Second Party’s property or any attempt thereof
while providing the Services under this Agreement.
26. Completion Date: Vendors shall ensure the timely delivery of the Software and the
software license to the Second Party no later than 80 (eighty) days after the singing of this
Agreement and as per the scheduled time outlined in Annexure C.
27. Contract Type: The term of this Agreement is for 80 (Eighty) Days commencing
from 10 July 2021 and ending on 30 September 2021, if mutually agreed between the
Parties. The parties agree that the Agreement shall be ultimately terminated, if both
parties decide to renew it by the expiration of this Agreement.
28. Payment Terms: The Terms & Payment schedule should be as follows for the
above-proposed software.
29. Customer Obligations And Items to Be Supplied: Vendors shall bear the
responsibility to train the employees of the Second Party in order to operate the Software
in the correct manner and with ease.
30. Warranties And Guarantees: The Warranty period shall be effective for only 3
(three) Months commencing from the date of installation of the Software. During this
period, Vendors shall provide service, free of charge, to the Second Party for any kind of
technical support required by the Second Party. The Second Party shall provide Tk.
3,000on a monthly basis as a service charge for any technical support required after the
expiry of the warranty period.
31. Limitations of Liabilities: Vendors warrants that it will perform its obligations
hereunder:
(ii) In conformance with that level of care and skill ordinarily exercised by other
professional firms in similar circumstances;
32. Tax Matters: The quoted prices are excluding all VAT & Taxes. This Agreement
shall be construed in accordance with the laws of Bangladesh.
34. Insurance: After successful installation of the Software, if the Second Party is
facing difficulty with the operation of the Software due to any bug or glitch, it is Vendors’
responsibility to fix the bug or glitch and ensure smooth functioning and operation of the
Software.
35. Ways for Handling Project Termination, Changes, Delays, and Cost
Escalation: If Vendors fails to deliver the Software within the scheduled time of
delivery, a grace period of 7 (seven) days will be added. After the grace period, 2% shall
be deducted from the total price of Software for each day. Feedback and/or
implementation time for each module or system would be 7 (seven) days from the delivery
date which would not be included in the total project duration. All hardware & networks
required for the Software implementation will be provided by Second Party at their
premises; vendors shall suggest the product & procedure. As already outline the total
effort to develop and implementation of the Inventory, Accounting, CR & Marketing
Software, so the estimated cost is mention. Sl. No. Description of the Software Amount:
Total 1,70,000.00 (In Word: Taka One Lac &seventy Thousands Only)
36. Upon receiving proposals from multiple contractors, the customer compares and
evaluates them. Selecting the best proposal, reaching an agreement with the contractor,
and committing funds are all part of the “project selection” process.
Criteria 1 2 3 4
Technical capabilities Poor Adequate Good Excellent
Vendor experience and Poor Adequate Good Excellent
Quality
Project approach Poor Adequate Good Excellent
Total price ›8,000,00 ›6,000,00 ›4,000,00 ›3,000,00
Customer success Poor Adequate Good Excellent
practices
Reputation and customer ‹3 ‹5 ‹7 ‹10
references
Social policies Poor Adequate Good Excellent
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Legal and Data security Poor Adequate Good Excellent
Terms and conditions Poor Adequate Good Excellent
Background Poor Adequate Good Excellent
37. Simple Rating: In response to its RFP for the software project SHM Company
received proposals from three contractors: MicroDreamIT; Smart Software and DataSoft.
Each proposal was reviewed and rated by a group of operations managers at SHM on ten
criteria using the following 4-point scale. The results of the assessments for the three
proposals were as follows:
Based on the sum of simple ratings, Smart Software was rated the best.
38. Weighted Rating: Using the simple rating, DataSoft was clearly the worst, but
MicroDreamIT and Smart Software were considered too close to differentiate. The rating
group then decided to look at the criteria more closely and to assign weights to the criteria
based on their relative importance:
Criteria Weight
Technical capabilities 1
Vendor experience and Quality 1
Project approach 1
Total price 1
Customer success practices 1
Reputation and customer references 1
Social policies 1
Legal and Data security 1
Terms and conditions 1
Background 1
Sum 10
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Taking the weights into account, the proposals scored as follows:
Using the sum of the weighted ratings, Smart Software is clearly the superior proposal.
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