Point of Sale Computer System Analysis

SECTION I

1. 1 Introduction

Nowadays, data processing uses one or more database at one or more certain organizations. Databases are use in transaction processing where information are stored, retrieved and transmitted at certain time it is needed. Examples of transaction processing systems are airline reservation systems, billing system, payroll system, library system, online marketing and online transaction processing. Handling business is not an easy thing to do.

In order to have a successful business, each of its sub departments must have this eagerness to learn new ways of how it will be competitive enough to deal with the ups and downs of the economic world.

* Company Profile Dante’s Radiator Enterprises Corporation In 1968, Dante’s Trading began as a trading firm dealing with repair of automotive. Organized by its President Mr. Dante Caguioa, an entrepreneur backed up by skills and sheer confidence. It started as a small shop located at the heart of A. Bonifacio Avenue, the road leading to North Diversion.

Since it as located on a busy site, the small shop was improved into a bigger one, for them to accommodate its fast and growing number of customers and clients. Afterwards, the company concentrated on servicing of automotive radiators. From the very first auto radiator, it moved on to making not only Marine radiators, but a fast growing demand for Industrial radiators made the company a name in the automotive service industry. Just recently, the company re-entered to Securities and Exchange Commission (SEC) from Single Proprietorship into a Corporation, one sign of the company’s progress.

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1. Background of the Study Small businesses are the heart and soul of the entrepreneurial economy. They create, inspire, and fundamentally change people’s lives. However, small business across the globe including here in the Philippines have problems coping up with the fast pace development because of three major aspects, to be exact: management, non-utilization of technology, and sales and marketing strategies. Small business owners tend to be involved in every aspect of their business from being the bookkeeper, marketer, human resources manager, mediator, customer liaison officer and cleaner.

They tend to do it all and find it hard to hand over these tasks for the main reason of the frown on spending any money. However, many fail to realize that if they invest their money wisely in accessing the right type of goods and services to grow their business and be more effective, they will see positive changes occur over time. They can become more productive and profitable. Small business companies tend not to use technology like computers and other productivity tools or if they tend to use it, they are under-utilized because of poor choices or cost effective decisions.

However, the utilization of automation is a matter of perspective. Almost all small business have the mindset of not needing it because what they knew is that the process they are doing is already working for them and adapting change would disrupt the operation. Additionally, they are thinking that these tools are just cost effective move; because they do not know how to use it or even their personnel don’t, though they could learn to use it and yield it to their full advantage. For small business the basic automation process would be point of sales system.

Sales or ordering system throughout the world has relied on pens and papers. Problems such as missing orders and information sent to the wrong place arise. Furthermore, some could not be able to handle the massive volume of orders. Under the old manual ordering systems, it takes up too much time to process. Here comes point-of-sale system – a company’s gateway to valuable information. When a store POS system isn’t able to share valuable information about customers, sales, and operations with other parts of the organization, it can impact the bottom line.

Real time ordering and improved efficiency has been the focus of entrepreneurs. As with many business scenarios, getting rid of paper improves efficiency, reduces human error and allows information to flow to an infrastructure without a time consuming data input process. There is also less chance of handwritten orders being misread and a higher customer turnaround as customers will be served faster. Thus, a POS Point-of-sale system is needed. 1. 3 Statement of the Problem 1. What are the tools needed to develop the Point of Sale? . How will the stakeholders assess the developed system? 1. 4 Statement of Objectives 1. 4. 1 General * Create a POS System that will fit the need of Dante’s Radiator Company. * To simplify the accounting and record-keeping tasks involved in business. 1. 4. 2 Specific 1. To develop a system using the following tools: a. VB. Net b. MSAccess c. Adobe Photoshop 2. To develop a system to be evaluated by the stakeholders in terms of the following: a. Speed b. Accuracy c. Reliability d. Efficiency e. Security 1. 5. Scope and Limitation

This Point of Sale system provides log-in process for security purposes and only admin can control the maintenance of the system as well as the process. The main control of the admin is on items; only admin can add, edit and remove item/s. The other access will be for the cashier, he/she can also view the items but unlike the admin he/she is not privileged to manipulate the products inventory. This system will list down all the products the company has. In transaction, the receipt will be filled by inputting the barcode of the product then it automatically displays the item name and the price.

When you input the same barcode, it will also be automatically counted and the price will be computed based on how many products were bought. In settings, we can select which printer is available and where we want our receipt to be printed. It also includes the dimension of the receipt and the size of the font. Once it was on the print view we cannot remove or add an item in the receipt else we go back to Fill Receipt tab. We also cannot save the filled receipt unless we select a printer. The system also counts the receipt or transaction held in a particular day by the receipt no. s primary key. The printed receipt will show the receipt number for that day, receipt date, item, price, quantity, sum of each product based on their quantity and the most important the total amount.

SECTION II

2. 1 Review of Related Literature

2. 1. 1 Foreign * History of POS Point of Sale Over the years, more enhancements were made to the cash registers until the early 1970s, when the first computer-driven cash registers were introduced. The first computer-driven cash registers were basically a mainframe computer packaged as a store controller that could control certain registers.

These point of sale systems were the first to commercially utilize client-server technology, peer-to-peer communications, Local Area Network (LAN) backups, and remote initialization. In the late 1980s, retail software based on PC technology began to make its way into mainstream retail businesses. Today, retail point of sale systems are light years ahead of where they began. Today’s POS systems are faster, more secure, and more reliable than their predecessors, and allow retailers to operate every facet of their business with a single, integrated point of sale system. (*http://www. retailsystems. com/history-of-retail-pos-systems. fm*, July 28, 2009) * 7 reasons to switch to a point-of-sale system If you’re a veteran retailer, you know the problem: Your inventory doesn’t match your tallies. Sales are going unrecorded. Your staff is spending far too much time chasing mistakes instead of tending to customers Something is seriously wrong, and you’re just not sure what the problem is. These and other snafus suggest that it’s time that your business did away with its cash registers and stepped up to a point-of-sale (POS) system, such as Microsoft Dynamics Retail Management System and Microsoft Dynamics Point of Sale (POS) .

A POS system is a computer software and hardware network that records sales as they’re occurring; it solves a variety of operational and record-keeping headaches. If you need more proof, here are seven signs that your business could boom with a point-of-sale system. 1. Your “sudden shrink” no longer goes undetected. POS systems such as Retail Management System are designed to immediately record any and all sales. Not only does that mean timely and accurate sales tracking, but a POS system also lets you readily identify inventory levels, particularly when what you have on the books doesn’t jibe with actual stock. You see it with the onset of sudden shrink—when you realize that inventory is missing or your numbers just never seem to match up,” says John Rarrick of RBS Inc. , a Nyack, N. Y. , consulting concern specializing in startups and small businesses. “Almost every modern POS has a receiving and inventory module that, when used properly, can help pinpoint the cause of the shrink. ” 2. Markdown management is much easier. A common land mine for many small to medium-sized businesses is price reduction—knowing which items have been marked down and recording those discounts accordingly.

Rather than wrestling with cash-register receipts at day’s end, a POS automates the process of introducing markdowns and, in turn, tracking them accurately. “The trends in POS are not just inventory accuracy but the use of pricing models to allow for markdown management,” says Gary Ruffing, senior director of retail services for BBK Ltd. , a business advisory firm in Southfield, Mich. 3. Promotions can be tracked more successfully. A similar dynamic holds true with promotions. Whether through coupons, special discounts or other vehicles, promotions can be central to attracting and retaining business.

Trouble is, managing and reconciling short-term specials—not to mention pinpointing their impact—can be nigh impossible without the automation and immediacy of a point-of-sale system. “Many small retailers invest in things such as direct home marketing,” Rarrick says. “At the end of the promotion, those with manual cash registers are hard pressed to tell you how successful the promotion was. The POS store can pretty much tell you to the penny how they did. ” 4. You can maintain control in absentia.

You may be surprised to discover that you actually run two businesses: one when you’re there and its evil twin when you don’t happen to be around. Many operations suffer in employee efficiency and customer service when the boss is away. Automating a host of functions via a POS can help boost those areas, no matter where the head honcho happens to be. “You simply can’t be there all the time,” says Jim Melvin, chief executive officer of Siva Corp. , a Delray Beach, Fla. , company which provides point-of-sale systems to restaurants. A POS lets you have that important level of control when you’re not there. ” 5. Your prices are consistent from one location to the next. Nothing can prove more embarrassing than having a customer question why one item has one price at one store, yet a different price at another. If your business operates at more than one location, a point-of-sale system ensures pricing consistency. Even better, a POS system automates overall inventory control, helping to keep stocks in proper balance depending on demand and other factors, which can vary from one location to the next. It really lends itself to a better overall customer experience—the sorts of things a customer expects when he walks through the front door,” says Melvin. 6. You get many tools in a single package. Buying business equipment piecemeal can be pricey. If you find your checkbook wearing thin from the expense of software and other gear, a comprehensive point-of-sale system may include them in a single package. “Most POS systems have add-on modules like payroll time clocks and customer preference databases,” says Rarrick. “That removes the need for small businesses to invest in separate systems for those purposes. 7. You can make better use of your personnel. Little is more maddening to a business owner than watching his or her staff bogged down with inefficient, unproductive responsibilities, from double-checking inventory disparities to seemingly endless cash-register reconciliation. Perhaps the greatest advantage to a comprehensive point-of-sale network is the freedom it can afford your personnel to devote their energy to what genuinely matters the most: helping customers. “A good POS allows you to allocate your human resources to the customer service area of the business,” Ruffing says. That means they no longer have to be counting, calculating, ordering, and checking cash-register accuracy. ” http://www. microsoft. com/business/en-us/resources/technology/business-software/7-reasons-to-switch-to-a-point-of-sale-system * Importance of computerization COMPUTERS have changed the world of business. They’ve helped increase productivity, improve recordkeeping, reduce paperwork, track sales, and control inventory. They’ve helped people work more efficiently and profitably than ever before. The world is changing and is changing fast.

With the globalization of markets, ever-shifting demands of the market, and the growing use of information and communication, small to medium business must learn to compete in order for them to survive. Especially in developing countries which the use and adaptation of technology is very slow;most small to medium businesses still operate with manual or semi-manual accounting systems. Such systems are labour-intensive to maintain, leave plenty of occasions for errors and create opportunities for abuse. It is difficult for managers to be competitive when they must work with outdated or inaccurate information.

The use of information and communications technologies can significantly improve results: they can facilitate the collection, analysis, storage and reporting of information much faster and more accurately than could be accomplished using manual systems. Computerization also can help cooperative managers streamline operations, cut operating costs, enlarge their networks of members and affiliated institutions, increase sales and respond to signals from far away markets. Connecting to the global network of the Internet also has its advantages, allowing faster communication with members, partners and clients at a fraction of the cost.

Speaking of cost, of course these benefits are not free; there are costs involved. Fortunately, in terms of hardware and software, the costs are relatively low and within reach of most small t0 mid-sized business companies. Yet they are not the only cost. Yet hardware and software costs are not the only costs. There are also “people-related” expenses to consider. Since the information processing needs of each cooperative are unique, these other expenses will depend on a host of factors, including: Size of the cooperative and volume of operations; Business activity of the cooperative;

The type and number of computers and other supporting equipment to be used and The kind of software selected, whether it is commercially available software or Open Source software. There is also the cost of the upkeep and maintenance of the equipment purchased plus the cost of upgrading the software used as new developments occur. Lastly, there is the cost of the training of the people who will use the system, not just the preparatory training at the start but the continued upgrade training of them as new developments and updates in software occur.

These “people-related costs” are usually underestimated and investing on your people is a must in businesses. Companies should realize that benefits do not come as quickly as might be expected. That happens because computerization is more than just a technical issue involving the installation and linking of a few computers and the development or use of appropriate software. It also means changes in work habits and the way people relate to one another; these behavioural and institutional changes cannot easily be predicted or planned for beforehand.

They are the result of experimentation and innovation after adoption of the technology, and this can take time. Plus there is this risks just like in any other business initiative, there is also a risks in computerization. There is always something that can go wrong, and if the process is poorly planned and provisions have not been made to cope with the problem, solving it may end up costing the business companies a lot of money. The main way to manage these risks successfully is to plan carefully and adopt a project approach.

Below is a table of computerization projects risks and ways to manage them. Risks Ways to manage risk EXTERNAL Electrical power supply is unreliable or erratic. Purchase of an auxiliary electric generator and/or battery-based uninterrupted power supply (UPS) for the cooperative may be required Unreliable fixed line telephone system. May require the purchase of a mobile telephone set-up, if mobile phone service is available in the area Local Internet service provider too expensive and service is poor. Find another less expensive or more reliable service provider.

INTERNAL ACCEPTANCE

Staff maintaining manual system fear computer will replace them. Explain that computerization can improve business efficiency which can lead to expanded operations and this will require more staff. Provide job re-training to redundant staff to work in new areas. Some staff feels threatened by new technology. Special on-the-job training implemented in a gradual manner may overcome this resistance.

PROJECT MANAGEMENT

Project objectives not met and member needs not satisfied. Develop a careful project design before starting and be sure to consider users’ needs.

Estimate resources with a certain safety margin Define measurable success indicators at each stage of implementation Define scope and cost of project: What problems have to be solved? Does the coop have the resources to solve it? What will the net benefits be? TIME The project took longer than expected. Prepare a detailed work plan with clear milestones indicated and be sure to define target dates for each.

COST

The project cost more than expected plan carefully. Estimate the time required and costs involved with a margin of safety.

Make sure that contracts with external service providers specify what has to be done, by when and by whom, along with penalties for missed targets. MAINTENANCE Post-project maintenance costs more than expectedAssess maintenance facilities before implementation. Plan upgrade (growth) of the computer system, both software and hardware Consider subsequent follow-up support requirements and costs, availability of a reliable service provider in the post-project period If computerization is so risky and costly, then why are businesses computerizing?

Mainly because they realize that improving the efficiency with which they collect, analyze and use information will help them achieve their business goals. Below are some list of benefits that business companies can gain from computerization. a) Business services and management: Accounting and management: computerization of accounting and administrative records (payroll, invoicing, accountancy, bookkeeping, purchases and sales) and tax requirements (assessment of taxes and duties) reduces paperwork and offers the possibility of keeping updated accounting records in real time.

Inventory control: product stock inventory records can be easily updated and additional information on production factors (agrochemicals, fertilizers, machinery, seeds), included. This allows for a better control of stocks, which can mean financial savings. b) Governance and member relations: Administration of member participation and member shares: computerization allows for the automated tracking of each member’s transactions and balances and calculation of his/her patronage refunds and dividends on shares can be quickly done. This improves the quality of service offered to members. examples are salary and shares) Improving member-management relations: automation allows for more frequent and detailed reporting to members by management and provides individual members with easier access to more detailed and current information on their business transactions. Improved communication and information sharing: computerization also broadens communication channels among members, suppliers and consultants, through the publication of contents on Web sites with restricted access (intranets), delivery of news by e-mail, newsgroups and discussion lists for debating subjects of interest, electronic publications, and so on. ) Policy level: Data access: raw data can be stored in digital format and accessed much faster. Using computer systems larger volumes of data can be easily saved and retrieved. Turning data into policy decisions: data can be more easily organized for analysis or presentation to assist in management and policy decision making. For example, cumulative historic production data can be analyzed and future trends projected in order to plan future scenarios. Networked computers allow for multiple analysis of data in an easy way.

Optimization of procedures: the logical setup of computer systems leads to a more unified way of doing things, easier compliance with regulatory and/or legal requirements, and better overall quality of the administration. d) Capacity building in business management Learning: training in the use of computers to solve day-to-day cooperative business and member service problems helps in building new abilities in cooperatives’ staff and members. Real time information: it allows for instant access to real business information that can be used to support staff training processes. ) Communicating beyond the boundaries of the business: E-mail, mailing lists, and newsletters: computers, connected via modems to the telephone system and to the Internet, permit the use of e-mail thus facilitating faster, cheaper and easier communication between managers and distant buyers and sellers of the business’ goods and services. Web sites: a business can easily create its own public Web site to provide partners, clients, and potential byers and sellers information on the business performance and services.

In summary, there are lots of ways in which computer and telecommunications technologies can help small business companies optimize their business results, solve problems, and assist in creating new member services or improving existing ones. Computerizing agricultural cooperatives: A practical guide by The Food and Agriculture Organization of the United Nations http://articles. directorym. com/Habits_Of_Unsuccessful_Business_Owners_And_Managers_New_York_NY-r971702-New_York_NY. html 2. 1. 2 Local * LevelUp’s POS Integration Makes Payment a Breeze

A tech startup is making it easier for quick-service operators to allow their customers to use mobile payment solutions. LevelUp, which created a customer- and business-friendly mobile payment process for restaurants, recently integrated with MICROS, POSitouch, and Dinerware point-of-sale systems. These three constitute 30 percent of all existing POS systems. This integration allows merchants to choose “LevelUp” on their POS during payment, and then scan a barcode that LevelUp customers have on their phones to complete payment transactions. When we integrate with a point-of-sale system, we supply [businesses] with just a 2D barcode reader that plugs directly into the POS via USB or serial, and it operates just like when you have a credit-card reader attached to your POS,” says Christina Dorobek, LevelUp’s vice president of partner development. In addition to making transactions faster and easier, Dorobek says LevelUp’s integration with POS systems also makes accounting more seamless and analytics more robust. “LevelUp, at its most basic, is able to track who your customers are, how often they’re coming in, [and] how much they’re spending,” Dorobek says. And one of the really cool net benefits of the loyalty program—the loyalty campaign that is built in to the system—is we see customers coming back, on average, about 20 percent faster, spending about 7 percent more on an average ticket. So there’re very tangible benefits to a business in terms of being able to grow. ” LevelUp services around 300,000 active consumers and about 3,800–4,000 businesses nationwide. Though Dorobek says a majority of quick serves are using LevelUp predominately at the counter, many are also using LevelUp at the drive thru.

The company has an open API, so any POS system is welcome to integrate, Dorobek says. She predicts that mobile phone use at quick serves will become a norm as time goes on. “When I look at the way customers are interacting with businesses, especially quick-service businesses, I think there is definitely a shift to consumers using their mobile phones, not only to pay, but also to check the menu ahead of time … or place an order for pick up,” Dorobek says. “I think that shift to paying with your phone will be an automatic next step, and obviously is already happening, at least with 300,000 LevelUp users. http://www. qsrmagazine. com/news/levelup-s-pos-integration-makes-payment-breeze 2. 2 Review of Related Systems * CREST POS CREST, (Complete Retail Electronic Sales Terminals) these are Self-contained, single unit, self-installing systems, and are available only through us. CREST units are built in a 12 gauge, powder coated steel case, 16″ by 16″ attached on a sturdy steel cash drawer of the same dimensions. Inside the case is an Intel computer with POS and Credit card processing software fully installed, configured and ready to use!

The touch screen, thermal receipt printer, magnetic strip reader and barcode scanner are all attached and ready to use. “Self-Installing” means you literally take the unit out of the packing box and plug it into power and the internet that is it! Complete Retail Express Software is standard, and other supported software is available. Different Hardware and software combinations are also available, contact us for specific information. www. point-of-salesystems. com * DELL POS Dell offers three POS solutions. You can choose from versions for QuickBooks, Cash Register Express or Restaurant Pro Express.

These are top-of-the-line POS software applications, and the computers Dell offers with the software are better than most POS systems. Through Dell, you can obtain a POS system with up to 4GB of RAM that is quite capable of running other business software. However, if you need a point of sale system but can’t afford to pay too much in out-of-pocket start-up expenses, Dell may be a bit out of your reach. The version with the lowest price starts out at about $3,500. Dell does offer financing for those who would like to set up a payment plan.

Through Dell, you can customize the computer and any of the peripherals that come with your POS system package to meet the needs of your business. The company offers multiple options for most equipment. The Dell/QuickBooks retail solution comes standard with a 15-inch flat panel monitor, a compact cash drawer, a barcode scanner, a POS keyboard and a thermal receipt printer. You can add upgrades such as increased RAM and speakers. Dell offers a wide variety of peripherals; however, the company does not provide POS products like kitchen printers, kitchen displays, scales, wireless inventory handhelds or PIN pads.

Dell also does not provide tablet or mobile versions of its POS software. Unlike some of the other complete POS systems, the Dell systems are fully functional computers. This means you can access the internet, use office applications such as Word, Excel and PowerPoint and any other software you might consider, including accounting and inventory software. This makes it a practical choice for those who need their system to perform more than one function. Dell hardware comes with a three-year parts-and-labor warranty.

If you need technical or customer support, you can contact Dell via phone, email or chat. They have training videos and manuals that you can access to help you get to know how to use their POS system. The POS system information says it comes with Dell’s Gold Technical support; however, this support service appears to be discontinued. We cannot find a description of this service on Dell’s website, and the link to the Gold support is a dead link. If you need help with the POS software, the software providers offer that support . pos-systems-review. optenreviews. com 2. 3 Methodology 2. 3. 1 SDLC Implementation Implementation Coding Coding Design Design Analysis Analysis Project Planning Project Planning Testing Testing Maintenance Maintenance

SECTION III

3. 1 Description of the Existing System

The group had an interview with the company Manager, tackle about their existing system upon getting the orders of the customers for them to start the making of their product, since, they were made-to-order service, and the process of getting the customer’s order needs to be accurate.

By then, the company had this system of depending onto pens and papers on their transaction process upon the customers that sometimes lead to some problems: missing order, wrong delivery details, losing of proper information of the products, less security, cannot update easily the total payments made by the customers in the whole day, and lastly the inaccurate computation of bills and inventory of the products itself that could get the company to lost profit.

Upon interviewing some personnel, they keep on complaining about their system that it was an old-fashioned type of transaction process where they were all depending on just a sheet of paper that may lost or something, yes they had these computerized transaction using MS Excel 2007 yet it still remains not so organized because redundancy of data occurs.

Based on the answers stated by the employees of Dante’s Radiator Enterprises Corporation about the problems encountered by the branch about their current transaction process which is paper and pen dependent, the proponents concluded that the Dante’s Radiator Enterprises Corporation really needs the proposed system. The process of existing system in terms of maintaining the current information of each items are first the checking on the MS Excel 2007 of the current status of the customer, how much is the total sold for each of the items.

Second, the cashier will get the payment to the customer then the sold product will be deducted to the total number of stocks of the company. Third, the cashier will save the current changes made to the records. Then lastly, the cashier will issue an Official receipt to the customer as a proof of payment. 3. 2 Use Case Diagram Ordering Sub-System Ordering Sub-System Point of Sale Point of Sale Automation Boundary Automation Boundary Look up for the availability Look up for the availability Create new order Create new order Update Order Update Order

Owner Supplier Purchased Sub System Purchased Sub System Point of Sale Point of Sale Automation Boundary Automation Boundary Look up item order Look up item order Update order and price of item Update order and price of item Update Purchased Items Update