3 SYSTEM ANALYSIS AND METHODOLOGY
For the design and implementation of
online supermarket to be accomplished, system analysis of the organization is
carried out. A thorough study is made on the existing system with a view to
spot out the problem it has. Feasibility study and data collections where done
through interview, questionnaire and assessing all vital forms and studying the
system manually. The analysis involves the investigation of the present
supermarket and its operation. The evaluation of the envisaged system is
through gathering of information and analysis of the existing system. The
extent to which this analysis is done determines the efficiency of the
resulting system. A thorough analysis produces a system, which can easily be
adapted to change in functions and applications. The system analysis report has
been divided into two parts, since check points should be incorporated into the
system design. The two sections of this system analysis report are:
Ø Documentation
package report
Ø Progress
and recommendation report
3.1 DOCUMENTATION PACKAGES
This documentation package is the result
of the investigation during the analysis. It includes
Ø Organizational chart of the affected area of the investigation
Ø Operations of the present system
Ø Input and output analysis
Ø Summary of the interview conducted during the investigation
3.2 OPERATION OF THE PRESENT SYSTEM
For
us to be able to analyze the operation of the present system, we have been able
to divide the organization into functional units.
Ø Purchase
unit
Ø Sales
unit
Ø Main
store and warehouse unit
Ø Account
unit
3.2.1 Purchase Unit
The
purchasing section of CY supermarket is charged with the responsibility of
making all the purchases on behalf of the company. They work hand in hand with
the main store section because orders are placed for more supplies only when
existing system stock goes beyond the companies approved re-order level.
Information about the re-order level can only be obtained from the main sore.
Purchase section maintains two files:
Ø The
purchase form used to record all the items purchased.
Ø Transfer
files where duplicated of transfer note books, which the purchasing section
issues to the main store, are kept.
3.2.2 Sales Unit
The sales department in CY
supermarket is charged with the responsibility of company’s goods and keeping
record of all sale transactions carried out. It places selling price for
customers from the information obtained from the purchases department on the
cost price of goods. So that when an order is made, the sales department raises
on invoice, which will be signed by the customer before the goods are supplied
to him. Also, sales department maintains for the sales, item and stock
information.
3.2.3 Main Store/Warehouse Unit
This
is where the company keeps the various goods they have in stock. Also, it is
where the inventory control activities are carried out. When the purchasing
unit issues a transfer note book to the main store, the store manager in turn
issues out a store receipt book for the goods received after cross checking the
quantity quoted by the purchasing section. When the sales department makes
request for goods from the main store, the store manager raises an invoice. The
sales man who will convey the goods to the customer must counter sign this
invoice.
Since the goods come in and go out
of the main store, records are kept for each transaction which involves the movement
of goods from the store. Calculations can be made to ascertain what quantity of
any product is left in the store. Records of stock are however kept in
stock/inventory file. The main store department works hand in hand with the
suppliers. Once any good is getting out of stock, the store manager signals the
supplier of more goods to replenish the store.
3.2.4 Account Unit
The
account unit of the company is charged with the responsibility of keeping
financial records for the company. This record helps the company’s management
for adequate planning strategy for the company’s survival. The account
department keeps track of the financial details accompanying each transaction
so that at the end of the day, profit/loss from sales of the companies’ goods
is obtained. When profits are made, the company in turn will be able to pay
their staff wages, taxes and so on.
3.3 DATA COLLECTION AND ANALYSIS
The
analysis of the present system is based on the data collected as well as the
information gathered during the investigations. Interview was carried out in
the concerned departments and questions based on the inventory and stock was
gathered and sent across to departments. Also, personal observation of the
system was undertaken. They include the study of the necessary files and
documents; the collection of data yields all the elements of the system;
objectives, constraints, input and output processing control and feedback.
Based on the information so gathered, a flow chart, which shows the affected
area by the proposed system, is provided.
3.4 SUMMARY OF INTERVIEW
It
was discovered from the investigation that there is a lot of redundancy,
duplication of data and files which makes the present system inefficient. From
the observation, majority of the workers attitude towards their jobs is not
encouraging and this could be as a result of redundancy. Also, a lot of money
is wasted preparing customers list every day.
3.5 INPUT AND OUTPUT ANALYYSIS
In
input analysis, it involves invoice, sales waybill, order form, goods supplies
form sales as the initial input for the companies’ daily transaction process.
The invoice and sales waybill are issued to the customer by the sales man as
soon as products are collected or when goods are delivered to the customer.
Goods supplied and received by the sales department as well as the date of
transaction are recorded by the sales department. Goods received form indicates
the quantity of goods supplied by the manager. Based on this, the sales manager
then prepares a sales report and this serves as a summary of all forms received
from the sales supervisor. The report reflected:
Ø The
quality and type of each item soled
Ø The
quantity at hand
Ø Financial
report
Also, the purchasing manager prepares a
report, which serves as a summary of all forms received from the purchase
supervisor. This report reflects:
Ø Stock
level (quantity of stock at hand)
Ø Purchase
report (quantity of item bought)
Ø Transfer/Supplier
report (quantity of each item supplied to the sore).
In output analysis, this is the form any
interested buyer should fill and submit before the required goods will be
delivered to him or her.
3.6 PROGRESS AND RECOMMENDATION REPORT
This
report is a continuation of documentation package report. It keeps the original
scope and objective and the study along with an evaluation based on the
available fact. As operational feasibility of the recommended charge is also
discoursed in this section and it includes the consideration of the personal
and the organizational factors that would be affected. A brief summary of the
operation of the present system problems and a recommendation set of general
specification that will be needed to overcome the problems are discoursed. The
system design phase in the next chapter is developed as a result of the
designed work covered in the investigation.
3.7 OPERATIONAL PROGRESS AND RECOMMENDATION
The
operation of the present system along with the recommendation solution to
overcome the identified problems from the operational progress and
recommendation report, considering the present system which already been
outlined, the following recommended solution help in solving the identified
problem and these are;
3.7.1 Efficient Management Control
These
are the many ways used by the management to control its inventories.
Ø Simplification
and standardization of goods and services.
Ø Maintaining
inventory record and furnishing data for accounting.
Ø Planning
and determining total inventory requirement to meet the need of sales and
purchases.
Ø Controlling
the storage and flow of goods in progress.
Ø Procuring
the required quantity of item in proper quantity at the right time.
3.7.2 Efficient Inventory Control
Efficient
inventory control can be achieved by;
Ø Determining
the place of inventory controls in the organization.
Ø Developing
a method of classifying and identifying inventory.
Ø Setting
up procedure for goods procured for specimen and for control.
Ø Establishing
the step in the stock control cycle for the regulation of the flow of items
from the requisitioning to the sales of goods.
3.7.3 Efficient Account Control
Ø Determining
profit made during transaction
Ø Determining overhead cost of running the
company
Ø Determining
the actual facts about the company’s operations by producing a report showing either
profit or loss for given period.