Contents

Chapter 1.................................................................................................................... 2

Introduction................................................................................................................ 2

Background of the Study...................................................................................... 4

Business Profile.................................................................................................... 4

History........................................................................................................... 5

Mission........................................................................................................... 5

Vision............................................................................................................. 6

Organizational Chart...................................................................................... 6

Business Processes......................................................................................... 7

Business Information..................................................................................... 7

Importance of the Study....................................................................................... 7

Statement of the Problem...................................................................................... 8

Statement of the Objectives................................................................................... 8

Scope and Delimitation of the Study.....................................................................9

Definition Of Terms............................................................................................... 9

Chapter 2.................................................................................................................. 10

Research Methodology............................................................................................... 10

Review of Related Literature................................................................................10

Chapter 3.................................................................................................................. 11

Existing and Proposed System................................................................................... 11

Overview of the Existing System..........................................................................11

Problems of the Existing System.........................................................................12

Overview of the Proposed System........................................................................12

0
 System Work flow................................................................................................ 14

Context Diagram.......................................................................................... 14

Lower Level Diagram Process 1.0..................................................................16

Decomposition Diagram................................................................................17

Data Dictionary............................................................................................ 18

Cost Benefit Analysis.......................................................................................... 20

Chapter 4.................................................................................................................. 24

Summary, Conclusion and Recommendation............................................................24

Summary............................................................................................................ 24

Conclusion.......................................................................................................... 25

Recommendation................................................................................................ 26

Bibliography.............................................................................................................. 26

Appendix................................................................................................................... 27

Prototype............................................................................................................ 28

Project Charter................................................................................................... 29

1
 Chapter 1

Introduction

The world is moving in an accelerated pace in terms of business.

Businesses nowadays aim to deliver products and packages more quickly to

their target destination. How exactly are these products tracked? They are

tracked through the help of GPS and Satellites. Global Positioning System (GPS)

is a worldwide radio-navigation system formed from the constellation of 24

satellites and their ground stations. A GPS tracking system uses the Global

Navigation Satellite System (GNSS) network. This network incorporates a range

of satellites that use microwave signals that are transmitted to GPS devices to

give information on location, vehicle speed, time and direction. GPS satellites

have atomic clocks on board to keep accurate time (About Us:Institute of

Physics).

General and Special Relativity however predict that differences will

appear between these clocks and an identical clock on Earth (Patrick Bertagna,

2010). Satellites around the globe simplify our everyday lives with

communication and positioning of locations and directions. The need for power

in these systems is an ever-increasing task for authorities and companies

building them (Brengesjo, 2011). Tracking system helps to identify the position

2
of the shipment and inform the customer in well advance. Without tracking

system it is almost impossible to find out delivered items and often considered

as lost or stolen item that causes business loss. (Shamuzzoha & Helo)

In todays time, customer service can be used as a competitive advantage

in the industry. The identification of location and knowing the conditions of the

transported shipment is a must for businesses who value their customers.

Providing efficient and reliable services to customers play a significant

and crucial role in the growth and success of a business. Consumers no longer

have to wait for long and dreadful days to receive notification about their
shipment. Needless to say, receiving packages by customer within a day or two

is now typical for most of the globalized countries of the world. The role of

courier service companies is therefore essential for smooth functioning of the

business.

The size and volume of a firm help dictate whether or not a firm is in

need of such an upgraded system as they can be quite extensive and costly.

Employees are the most important component of a firm. It is mandatory for the

firm to be confident that their employees will be able to use the system. If their

employees and users do not know how to use the system, then the cost of the

system and the implementation will be of no value to the firm. However, if all

employees will have the proper training and knowledge of the system and all the

aspects of how to successfully utilize all the features, then, this would help the

business benefit and should help them reach all their goals and objectives.

(Smith, Ericson, Millen, Alva, & Valdez, 2009)

Consequently, it is inevitable for industries and the individual businesses

therewith to encounter major problems and loopholes that significantly affect

its general functions and operations. A particular entity, for instance, can

experience detrimental glitches regarding the system being applied in carrying

out its overall business functions and affairs. These difficulties can result to

declining demands from customers, lost opportunities regarding stakeholders,

3
decrease in the entitys competitive edge against its competitors, and many

other factors which influence the success or failure of a business. But through

this work pitfalls mentioned would be responded immediately with proper

solutions.

Accordingly, there is no guarantee that a particularly companys existing

tracking system have no flaws. Although it may appear that the system is

working efficiently, countless improvements can still be made in order to provide

optimal services to customers. Actually, the system has difficulties in providing

updates and there is delay in notifying customers. And sometimes, it

interchanges the tracking numbers from customer to customer. Hence, our

study focuses on improving these particular flaws of the systems. One solution

would be to develop the current systems real-time tracking technologies. Real-

time tracking is the method of finding the current location of a person, vehicle,

or object in real time using a GPS tracking device. Using the signals that a GPS

device constantly receives from the satellite, the movement of the person or

vehicle can be tracked (Wilson, 2016). The delivery notification at real-time is

very important and the immediate status of delays or other delivery problems

are required to notify as soon as possible. By tracking and tracing the materials

flow, it is possible to detect and to react in any uneven o unexpected events

before they cause significant problems or at the very least, the damage can be

reduced (Karkkainen, J., Framling, & Artto, 2003) (Stefansson & Tilanus,

2001).

Having such improvement would increase time efficiency for both

external entities (customer and management). Besides that, it would provide

easy access of related information for the customers and the management to

use; it would also develop the flow of shipment details that would give

assurance to valuable customers.

4
 Background of the Study

In todays courier industry, time is a significant factor for competitive

edge. In fact, it can actually be a make-or-break factor for a business entity. The

entity must take every opportunity to efficiently utilize time to its maximum

potential. Hence, our study shall include reduction of time in handling orders

and delivering them, which will ultimately lead to a systematic and faster

processing of transactions. An example of an improvement that the entity can

do is to make it a goal to inform valid customers about the locality of their sent

items and to assure them that their items would be received by the respective
recipient in all honesty handled with extraordinary diligence and all of which

shall be achieved through improvements that will be made to the entitys

current system.

Furthermore, we believe that through this study of this kind of system it

would reduce, if it cannot be fully eliminated, the delay of order processing

which oftentimes open chances of erroneous delivery (e.g.: over or under

shipment of merchandise, shipments delivered to the wrong address, etc.).

Business Profile

SABM Express is a prominent express courier company that is based in

Baguio City, Philippines. SABM Express has the expertise to provide superior

service in monitoring packages. The company recently celebrated its 16th

anniversary of delivering excellent service. It has earned the trust of clients

throughout the Philippines, providing fast and reliable express courier and

offering the highest level of service at the most competitive rates available in the

region. It specializes on providing optimal services to students in colleges and

universities who aim to deliver their packages to their respective destination

through a low cost but outstandingly reliable courier. SABM Express has a wide

coverage and network with over 100 strategically located branches over the

Philippines.

5
 SABM Expresss continuous and aggressive growth in the domestic

market made it clear what the next major move needed to be: setting foot

overseas. Thus, SABM Express is now in the process of planning its expansion

outside the country starting with its neighboring countries.

History

SABM Express was established by Ann Marinelle Jimenez and colleagues

in year 2000. Being alumni of the School of Accountancy and Business

Management of Saint Louis University in Baguio City, the founders decided to

form a brokerage and courier service company that will ultimately provide
services to the students of the SABM, hence the name SABM Express. For

many years of hardship, SABM Express was then expanded into a forwarding

service provider. It also expanded its target market which now includes students

of any program nationwide who aims to deliver their packages to their

respective customers through a low cost but trustworthy express courier.

As a third party provider, SABM Expresss first business procedures were

to dispatch shipments via asset-based carriers and books or otherwise arranges

space for those shipments. The newly introduced method became popular for

Filipinos especially with business establishments. Hence, SABM Express have

been thinking of a plan that will further expand the service globally. SABM

Express is now regarded as one of the respected leaders in offering fast and

reliable express courier in the Philippines.

Mission

To help people gain better and accurate access to goods and merchandise

being shipped all around the Philippines and the neighboring countries

therewith.

6
 Vision

To be one of the fastest and most accurate courier companies to respond

to all shipments being delivered.

Organizational Chart

Figure 1 Organizational Chart of Existing System

7
 Business Processes

SABM Express is one of the leading courier, cargo & logistics, and

remittance service providers. As brokerage and cargo agent, SABM Express

serves consumers who want to connect and communicate with their loved ones

at the lowest possible cost at the fastest possible time, backed up by the latest

computer technology and online parcel track and trace facilities.

SABM Express offers a wide variety of services. We also provide the

flexibility of delivering documents door-to-door. Fast, reliable and secure

delivery of letters and important documents is guaranteed. We provide full

container (FCL) and loose cargo (LCL) movement with optional pick-up and

delivery service. We offer the widest range of time and day definite parcel

delivery services in the market.

We believe in making the process of using a courier service easy and

convenient for our customers in fulfilling their satisfaction.

Business Information

Business Name: SABM Express

Business Address: 152, Bonifacio Street, Baguio City, Philippines

Email: SABMXpress@gmail.com

Telephone Number: 555-777-9999

Importance of the Study

This study will be a significant endeavor in promoting a fast and reliable

tracking system. This study will also benefit the management to monitor and get

detailed report on the exact location of the shipments. With this information,

the receiver or customer can be informed on the delivery status such as the

accurate time the delivery will arrive. The management can have an overview

and can calculate the quickest and most economical route to be required

8
destination. Tracking system gives a greater foresight to the management of any

upcoming traffic problems, diversions or closures, allowing them to react more

quickly to avoid such an obstacle. By understanding the needs of the

customers, the system will provide services to put them at ease and assurance

that their deliveries are in good hands.

The findings of this study will rebound as a benefit for the society

considering that tracking system plays an important role in business today. The

greater demands of the customers just show the need for more effective, fast,

and convenient service.

Moreover, this study will educate individuals in deciding on whether a

business is really fulfilling its responsibility to the community or is just showing

off to promote a business.

Statement of the Problem

The identification of location and knowing the conditions of the

transported shipment is a must for businesses who value their customers. One

of the problems encountered by SABM Express is (a) delay on updates wherein

notification about the claimed shipment of the customers arrived after a week of

delivery. (b) The system also experienced crossover of shipments, wherein latter

order arrives first in case of money transfers. (c) Another problem of the system

is manual tracking, by this the compliance of work slows down because it is

done manually and it is also time consuming. All these problems

aforementioned affect the accuracy, speed, accountability, credibility, and

mobility of the system.

Statement of the Objectives

The objective of the study is simply to eliminate the flaws of the existing

system and that the proposed system would cover up such flaw, in a way that it

will improve the flow of information within the business which eventually will

9
improve the income of the firm. (a.) Due to delay of updates of notification about

the claimed shipments, a well-monitored system should be implemented like

assigning an employee in every branch of SABM Express to watch every updates

that enters the system. (b.) The interchanging of tracking numbers will be

avoided by providing unique tracking numbers in each of the customers and

also the system will conduct proper scheduling to avoid crossover of shipment.

(c.) In order to save time, the system will install a real time GPS (Global

Positioning System) tracking system to get rid of the slow compliance of work

and a website for the user to have an easy access to the system where his/her
shipment is or a question that needs to be clarified.

Also, to continue to strive for better and more advanced system in order

to gain further improvement of quality, safety and efficiency of our operations.

Scope and Delimitation of the Study

The SABM Express is a leading courier, cargo and logistics for students

with low cost nationwide (Rural and Urban Areas). SABM Expresss deliveries

are within 1-3 days for goods and immediate money transfers. SABM Express

will efficiently and effectively deliver your goods in no time for customers to be

satisfied and to continue working with us. The proposed system is limited to

Philippines couriers only (like LBC etc.). It is for tracking goods shipments only

and money cant be track because of the easy transfer transaction. Some

calculations, assumptions, and selections were made as a consideration of a

proper and realistic design.

Definition Of Terms

Real Time Tracking Technology - detects the current geolocation of a

target, which may be anything from a vehicle to an item in a manufacturing

plant to a person.

10
 Global Positioning System (GPS) - is a radio navigation system that allows

land, sea, and airborne users to determine their exact location, velocity, and

time 24 hours a day, in all weather conditions, anywhere in the world.

Atomic Clocks - an extremely accurate electronic clock regulated by the

resonance frequency of atoms or molecules of certain substances, as cesium.

Global Navigation Satellite System (GNSS) - is a satellite system that is

used to pinpoint the geographic location of a user's receiver anywhere in the

world.

FCL (Full Container Load) - an international ISO standard referring to

one (full) container load (20 or 40) containing cargo for one consignee (one

importer). FCL shipping is the cheapest mode of transportation when importing

from China.

LCL (Less that Container Load) - a shipment 'Less than Container Load',

and it means in practice that your freight forwarder is going to be earning his

money by getting you the best deal.

Chapter 2

Research Methodology

Review of Related Literature

Global Positioning System (GPS) is a worldwide radio-navigation system

formed from the constellation of 24 satellites and their ground stations. A GPS

tracking system uses the Global Navigation Satellite System (GNSS) network.

This network incorporates a range of satellites that use microwave signals that

are transmitted to GPS devices to give information on location, vehicle speed,

time and direction. GPS satellites have atomic clocks on board to keep accurate

time (About Us:Institute of Physics).

11
 General and Special Relativity however predict that differences will

appear between these clocks and an identical clock on Earth (Patrick Bertagna,

2010).The need for power in these systems is an ever-increasing task for

authorities and companies building them (Brengesjo, 2011). Without tracking

system it is almost impossible to find out delivered items and often considered

as lost or stolen item that causes business loss (Shamuzzoha & Helo)

If their employees and users do not know how to use the system, then

the cost of the system and the implementation will be of no value to the firm.

However, if all employees will have the proper training and knowledge of the
system and all the aspects of how to successfully utilize all the features, then,

this would help the business benefit and should help them reach all their goals

and objectives (Smith, Ericson, Millen, Alva, & Valdez, 2009).

Using the signals that a GPS device constantly receives from the satellite,

the movement of the person or vehicle can be tracked (Wilson, 2016). By

tracking and tracing the materials flow, it is possible to detect and to react in

any uneven or unexpected events before they cause significant problems or at

the very least, the damage can be reduced (Karkkainen, J., Framling, & Artto,

2003) (Stefansson & Tilanus, 2001).

Chapter 3

Existing and Proposed System

Overview of the Existing System

Customers give their packages in a shipment company and after that

customers give information about their delivery in our company. This

information includes the name, address and contact number of the customer,

the name, address and contact number of the receiver, and where will the

package be delivered. After giving the tracking information, we will receive their

12
payment and provide them their tracking number. These tracking numbers will

be used when the customers would claim their packages.

Start

Filling of tracking information

Process

Tracking number

End

Figure 2 Process of Existing System

Problems of the Existing System

SABM Express tends to improve its current system. As of the existing

system, the said company has faced a lot of problem encountered by their

customer. The main problem that lies in the system is it gives the wrong

information to its customer. This wrong information given to the customer

happens when the updates regarding the shipments has not been made, or if it

has been made, the update does not reveal the true location of the shipment,

thus, this causes delay notifying the customers. An example for this is when the

shipment has been received by the customer but the status of the shipment is

still in the hands of the shipping company. Another problem would be the

13
existing system doesnt provide any websites, thus, no track of record and

shipment for our customers. Eventually, it will resort to distrust of customers in

case of loss and damage of their shipment. Not only in locating the shipments

but also the system gives the wrong tracking number to its customers, if not the

tracking number interchanges from one costumer to another, giving the

customer a hard time locating their shipments. It gives lack of assurance of

giving shipment details. Due to wrong tracking number given, shipped items are

also delivered to wrong customers. A single mistake that lead to many errors,

this error occurred in the current system is the reason why there is a need for
the system to be updated. Hence, the proposed system will solve these problems

which will upgrade the system and will eventually improve in to an efficient

management.

Overview of the Proposed System

The proposed system of SABM express uses a Global Positioning System

(GPS). Using the signals that a GPS device constantly receives from the satellite,

the movement of the person or vehicle can be tracked. SABM Express helps

identify the position of the shipment and inform the customer in well advance.

The proposed system generally aims to reduce, if not fully eliminate the

flaws of the existing system. It consists of improved processes that verify

information before giving them to the customer. The said process gives updated

notification to customers which reveal the true location of the shipment. The

process works 24-hours meaning whenever the customer receives the shipment,

the process shall notify the sender immediately. The proposed system also has a

new process in which in verifies the tracking number given by the receiver

before preparing the tracking details that are to be stored in the transaction

records which is the source of the process that confirms the shipment to the

receiver as well as the process that issues the notification to be given to the

sender which states that the receiver has already claimed the shipment. The

14
system also has a new process in which it stores the customer details of the

sender immediately after processing them in order for the system to be in track

of their customers and for the latter to have easier and smoother experience the

next time they make use of the system because they no longer have to fill-up

the same information over and over every time they make a shipment. The new

data store named customer records store the previous customers information

and uses the same the next time the said customer makes a new shipment. The

customers personal informations are kept by the system and the only

information they need to fill-up is the details about their shipment that varies
from one transaction to another. This improvement helps the customer save

time by reducing time on filling-up the information needed. The system also

saves time in processing said information because information on previous

customers is already stored and awaiting further use.

The proposed system also provides sales report to the management by

processing sales information coming from the transaction records by way of

preparing the weekly sales total to help the latter to keep in track of the system

and for it to formulate ideas and promotion to be appropriately applied to the

said system.

The proposed system in general intends to fix all the flaws of the existing

system as much as possible. However, it is impossible to have a perfect system

because as stated previously, no matter how efficient a system may appear, it

can still have countless improvements. Accordingly, there are some areas that

have not been answered by the proposed system which shall be stated in the

latter part of this research paper which recommends ideas of further

improvement to the next researchers of this system.

15
System Work flow

Context Diagram

Customer
Tracking
Information
0 Number

Notificatio
SENDER n RECEIVE
TRACKIN
Customer R
Card G
Claimed
Shipment SYSTEM
Shipmen
Informati
ts
on
Sales Report

MANAGEMEN
T

Figure 3 Context Diagram

16
 17
Trackin Trackin
g g
Numb VERIFY Informa
RE er tion
TRACKIN
CEI 4.
Cla G
0
im VE NUMBER
ed R PREPARE
Shi TRACKIN
pm 3.
G
ent 0
DETAILS
Shipm
ent
Trac
CONFIRM Data kin
6. g
SHIPMEN Dat
0
T a
TR
AN
SA
ISSUE CT Sales
5. IO
NOTIFICA Transa NR Informa
0 PREPARE
Not TION ction tion
EC WEEKLY
ific 2.
Data OR SALES
ati 0
DS TOTAL
on D1
RE CU
CO ST
Shipme
RD OM
nt
Informa ER
tion RE Sales
SEN PROCESS CO MA
Shipm Report
DE RD NAG
1. CUSTOM ent
0 S
R ER EME
D2 NT
Custo DETAILS DataCustom
mer er
Inform
ation
Data

Customer
Card
Customer
Data

7.0
CARD

ISSUE
CUSTOMER
Diagram 0
 Figure 4 Diagram 0

Lower Level Diagram

Process 1.0

Shipment
Customer
Information
Information

1.1 1.2

REGISTER REGISTER
CUSTOMER SHIPMENT
INFORMATION INFORMATION

Customer Customer Shipment

Data Details Details

1.3

D2 CUSTOMER RECORDS
.0
PREPARE
SHIPMENT DATA

Shipment Data

Figure 5 Lower Level Diagram

18
 19
7. Issue
0 Costum
er Card
Con
firm
6. Ship
0 men
t
5. Issue
0 Notifi
cation
Verify
TRAC Trackin
0 4.
KING g
0
SYST Numbe
EM r
Prepare Figure 6 Decomposition Diagram
Trackin
3. g
0 Details
Prepare
2. Weekly Registe
0 Sales r
1. Shipme
Total
2 nt
Informa
Process tion 1. Prepare
Costum 3 Shipme
er Registe
1. nt Data
Details r
0 1. Costum
1 er
Decomposition Diagram Informa
tion
 Data Dictionary

Data Flow

NAME DESCRIPTION ORIGIN DESTINATION DATA

STRUCTURE
Customer Information Name of sender +
Data needed for auto- Record Customer (Telephone
registration Customer Records Number) + Mobile
Information Number

Customer Information Name of Sender +

Information needed for Address of Sender
shipment to be Sender Record Customer + (Telephone
sent orderly Information Number) + Mobile
Number

Notification Consists of Tracking Number

Tracking Number + Claimed Notice |
and Notification Issue Sender Pending Shipment
about the Notification Notice
shipment
Sales Sales Generated Transactio Prepare weekly Revenue +
Information for the week n Record Sales report Expenses
Sales Report Prepare Management Net Income
weekly
Sales
Report
Shipment Data which have Name of Sender +
Data the details about Process Transaction Name of Receiver
the sender and Shipment Record +
shipment Data Address of Sender
+ Address of
Receiver + Type of
Transaction Confirm Shipment +
Record Shipment [Money Transfer |
Deliver Shipment]
+ Transaction
Number

20
Shipment Information Name of Receiver
Information needed to receive + Address of
the shipment Receiver + Type of
Sender Record Shipment Shipment +
Information [Money Transfer |
Shipment
Delivery]

Tracking Data that should Prepare Tracking Data Name of sender +

Data be have the tracking Name of Receiver
similar data to Details + Address of
the shipment Sender + Address
data of Receiver + Type
of Shipment +
[Money Transfer |
Shipment
Delivery]
Tracking Verified Tracking Verify Process Tracking Name of sender +
Information Number Tracking Data Name of Receiver
Number + Address of
Sender + Address
of Receiver + Type
of Shipment +
[Money Transfer |
Shipment
Delivery]

Transaction Tracking Number Transaction

Data extracted to be Number
given to the Transaction Issue Notification
sender Record
Components of Data Flow :

Address of Branch = Street + City + [State | Province] + (Country) + Zip Code

Address of Receiver = Street + City + [State | Province] + (Country) + Zip Code

Address of Sender = Street + City + [State | Province] + (Country) + Zip Code

Branch = {Letters}

Claimed Notice = Name of Receiver + Date of claim + Branch + Address of

Branch + Type of Shipment

Current Location = {Alphanumberic}

21
 Date of claim = Month + Day + Year

Family Name = {Letters}

Mobile Number = {Numbers}

Money Transfer = {Numbers}

Name of Receiver = Given Name + Middle Initial + Family Name

Name of Sender = Given Name + Middle Initial + Family Name

Pending Shipment Notice = Shipment + Current Location + Type of Shipment

Shipment Delivery = Weight + Quantity

Tracking Number = {Numbers}

Type of Shipment = [Money Transfer | Shipment Delivery]

Cost Benefit Analysis

Cost of the manual system

Record Books (P77.75*12 pieces for 6 staffs) P 5598.00

Index Cards (P43*24 pieces for 6 staffs) P 3096.00

Pens (P5.50*36 pieces for 6 staffs) P 1188.00

Salary (P381000 for 6 staffs) P 2286000.00

Training Costs (P6179.60*6 staffs) P 37077.60

TOTAL ANNUAL EXPENSES P 2332959.60

*The staffs in the manual system contains 6 people: 2 for receiving shipments, 2 for
record keeping and another 2 for shipments claiming.
*The prices are based on the following sources:

Record book: http://www.officewarehouse.com.ph/product/993/

Index Card: http://www.officeworks.com.ph/products/index-card-white-5x8-
50-sheets.html
HBW Pen: http://www.officeworks.com.ph/products/hbw-2000-ballpen.html
Training Cost: https://psa.gov.ph/sites/default/files/TABLE%2010.pdf
Salary: https://www.glassdoor.com/Salary/LBC-Express-Philippines-Salaries-
EI_IE747234.0,11_IL.12,23_IN204.htm

22
Cost of the New System

Project Management Salary P 1879463.00

Desktop P 32900.00

Printer P 2495.00

SOFTWARE DEVELOPMENT COST P 1914858.00

*The prices are based on the following sources:

Desktop: http://ph.priceprice.com/Acer-Aspire-X1920-2117/
Printer:
http://www.canon.com.ph/PRODUCTS/PRINTERSFACSIMILES/INKJET/SING
LEFUNCTIONINKJET/PIXMAiP2770.aspx

**Project Management Costs (Annual)

Project Manager Salary P 895586.00

Business Analyst Salary P 453265.00

Web Developer Salary P 251622.00

Web Designer Salary P 278990.00

Total Project Cost Estimate P 1879463.00

*The salaries are based on the following sources:

Project Manager:
http://www.payscale.com/research/PH/Job=Project_Manager,_Information_Tec
hnology_(IT)/Salary
Business Analyst:
http://www.payscale.com/research/PH/Job=Business_Analyst,_IT/Salary
Web Developer:
http://www.payscale.com/research/PH/Job=Web_Developer/Salary
Wen Designer:
http://www.payscale.com/research/PH/Job=Web_Designer/Salary

Other expenses (per year)

Depreciation expense P 6580.00

23
Repairs and Maintenance (P2000*12) P 24000.00

Internet bills (P1000*12 months) P 12000.00

Inks (P300*12 bottles) P 3600.00

Papers (P191*12 reams) P 2292.00

Training Costs (P6179.60*4 staffs) P 24718.40

TOTAL EXPENSES PER ANNUM P 73190.40

*Depreciation expense is computed by dividing the cost of the computer by its useful
life of 5 years.

*We approximated the amount for Repairs and Maintenance and internet bills and
multiply it to 12 months to get the annual expenses.

*The prices are based on the following sources:

Ink: http://www.officewarehouse.com.ph/product/014368/
Paper: http://www.nationalbookstore.com/school-office/paper-supplies/best-
buy-copy-paper-a4-size-70gsm.html

SUMMARY OF COST

Manual Proposed Difference

Software Development Cost P 1879463.00

Other Expenses P 73190.40

Annual Expense P 2332959.60

TOTAL P 2332959.60 P 1952653.40 P 380306.20

The data shows that the cost of the Manual System for 1 year is P380306.20
more than the cost of Proposed System for 1 year. With this, we can say that

24
implementing the new system will render more benefits to the company.

25
 BENEFITS Manual System New System

Tangible Benefits* P 380306.20

Intangible Benefits** 1521224.80

Savings from easier set-up P 800000.00

Savings from correcting errors P 1006540.00

Savings from data loss P 712325.00

TOTAL P 2518865.00 P 1901531

Divide by 12 months 12 months

Monthly Cost of Delay P 209905.42 P 158460.92

Tangible benefits are computed by comparing the cost of the Manual System to the

cost of the Proposed System. Tangible Benefits include the following:

Reduced labor costs

Reduced costs associated with current recordkeeping

Lower costs to rectify errors

Savings from Proper Scheduling

Savings from On-Time Delivery

Savings from Increased Speed of Activity

There are also intangible benefits that are present in implementing the new system.
However, they cannot be easily measured in terms of monetary terms. According to
Moran & Riley, by including tangible and intangible benefits that are expected as a
result of addressing the problem and comparing them to anticipated costs of
undertaking a project, we can quantify the value of the project, measure its potential
value, and use it to prioritize projects. The proposed way to account for intangible
benefits is to have a multiplier for intangible benefits that the project can justify. Four
(4) is used as a multiplier since the system is expected to impact the process of the
company that will bring minor internal and major external intangible benefits namely:

Increase in organizational responsibility and transparency

Accurate and faster access to data for timely decisions

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 Improvement in customer response time

Significant decrease in time and effort needed in data entry

To calculate the monthly cost of delay is to divide the annual benefit by 12 months.
The benefits for the new system is actually the difference between the cost of the
Manual System and Proposed system. On the other hand, we estimated the amounts
of the benefits of the Manual system. As shown above, the expected monthly delay to
be incurred in implementing the Proposed System is lesser than the monthly delay
incurred with the existing system. This is a powerful motivator to get on with the
project, get the best people possible onto the task forces and avoid delays.

The benefits stage of the Manual System looks at three main areas of potential
benefit: savings from easier set-up, savings from correcting error and savings from
data loss

RETURN OF INVESTMENT

Formula: (benefits/cost) *100

- Wherein benefits is computed by getting the sum of Tangible

and Intangible Benefits. Tangible benefits is computed by
subtracting the cost of the manual system to the new system.

= {[380306.20 + (380306.20*4)]/1952653.40} *100

= 97.3819 %

PAYBACK PERIOD

Formula: (cost/benefits) * 12 months

= (1952653.40/1901531) *12

= 12.3226

= 12 months 1 year

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Chapter 4

Summary, Conclusion and Recommendation

Summary

This study is generally geared towards the improvement of the flaws of

the existing system. The new processes benefit both external entities (customer

and management). The process of verifying the tracking number given by the

receiver aims to reduce the risk of sending the wrong shipment to the latter.

Correspondingly, this process also provides a faster and more accurate way of

notifying the receiver the moment the sender has received his shipment. The

reports on the delivery status, such as the arrival of the shipments, will give

assurance to customers that the respective recipient has received the shipment.

The new data store named customer records also provide an easier way for

previous customers to carry out their transactions with the system because

they no longer have to input the same information every time they make use of

the system. The management is benefited in such a way that the system

generates sales reports by preparing the weekly sales total from the transaction

records. This provides the management ways to make decisions concerning

further improvement of the system.

As shown in the cost benefit analysis section of this paper, the expected

monthly delay to be incurred in implementing the proposed system is lesser

than the monthly delay incurred with the current system. This simply means

that the proposed system generates more benefits than the current system. The

proposed system has long-term impacts which results to reduced costs and

increased revenues. This serves as a significant incentive to proceed with the

project, and to get the best people possible onto the task forces and avoid

delays.

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 Overall, this study attempted to show the ways on how to achieve its

optimal objectives to attain customer satisfaction and to be of utmost help to

the management. Furthermore, if these objectives are met, the results will lead

to maximum efficiency of the system making it a faster, accurate and most

importantly, a reliable tracking system.

Conclusion

This study helps to improve efficiency and productivity and it also gives

better understanding to the customers how the work is being done. It includes

reduction of time in handling and delivering orders which leads to a systematic,

reliable, and faster processing of transactions. The management will also be

benefited from the detailed report on the delivery status, such as the accurate

time the delivery will arrive, which will ultimately be a significant endeavor

tracking system in promoting a fast and reliable tracking system.

We believe that through this study, the flaws of the firm will not be the

reason of its downfall but rather a great challenge to improve into a better

system, that the suggestions and ideas of the customers will be entertain for

their convenience and the delay of order processing will be reduced, if not be

fully eliminated. Moreover, the finding of this study will reflect as a benefit for

the society considering that tracking system plays an important role in business

in todays time. We also believe that a business is not just to earn money but

also to earn the trust and confidence of each individual by striving hard,

provide their needs, and execute an exemplar work to be the best amongst the

best and not just a mere showing off to promote ones business.

Recommendation

Couriers must keep transparent records and files of their past customers

for safety purposes. System must keep the records of responses and take

actions that are needed to be done in the given recommendations. Tracking

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 systems and couriers are partners. They may give discounts and loyalty cards to

their loyal customers who transact with them ever time. They may also need a

precise management for responding to evaluation recommendations. Other

tracking couriers or systems dont notify the receiver of the goods themselves.

We recommend that every transaction, even the sender will notify the receiver

itself, the courier must still notify the receiver.

Bibliography

About Us:Institute of Physics. (n.d.). Retrieved from physics.org:

http://www.physics.org/article-questions.asp?id=55

Brengesjo, M. S. (2011, November 9). Tracking System: Suaineadh satellite

Experiment.

Karkkainen, M., J., H., Framling, K., & Artto, K. (2003). Intelligent Products. A Step

towards A more effective project delivery chain.

KTH. (n.d.). Tracking System: Suaineadh satellite experimen.

Patrick Bertagna, G. C. (2010, October 26). Retrieved from eetimes:

http://www.eetimes.com/document.asp?doc_id=1278363

Shamuzzoha, A., & Helo, P. T. (n.d.). Tracking and Tracing of Logistics Networks:

Perspective of Real-Time Business Environment. Vaasa, Finland.

Smith, R., Ericson, R., Millen, S., Alva, E., & Valdez, M. (2009, May 11). Inventory

Management System.

Stefansson, G., & Tilanus, B. (2001). Tracking and Tracking. Principles and Practice.

30
Wilson, T. (2016, October 6). Retrieved from Trackimo: http://trackimo.com/real-time-

tracking-work/

31
Appendix

Prototype

32
 Figure 7 Prototype

System Interface - Customers Point of View

The customer simply inputs the tracking number given to him/her by the system and
the system gives the customer the location of his shipment.

Project Charter

Project Charter
A. General Information
Project Title: Proposal of an Upgraded SABM Tracking System
Brief Project A system that will present and update senders about the current
Description: location of the sent item.
Prepared by: JIMENEZ, Ann Marinelle S.
Date: October 13, 2016 Version: 1.1
B. Project Objective
The objective of the study is to remove the erroneous information and delayed updates
given by the current Tracking System used by the company and to determine ways by
which the efficiency of the system can be improved. The study will result in
recommendation that are feasible and can be implemented to facilitate a high service
quality in rendering shipping services to all customers.
C. Assumptions
One of the first and most important assumptions to address in a business plan is that
there is a demonstrated need for your product or service in the marketplace. You can
do this with a competition analysis, showing that others are making this product or
offering this service and selling it profitably. If you believe you have a new idea no one
has tried yet, demonstrate that theres a need or desire for the benefit you offer, which
can include showing how other companies currently address this consumer need, but
not as well as your new idea will.
D. Project Scope
The SABM Express project consists of leading courier, cargo and logistics for students
with low cost nationwide (Rural and Urban Areas). SABM Express delivers within 1-3
days for goods and immediate money transfers. SABM Express will efficiently and
effectively deliver your goods in no time for customers to be satisfied and to continue
working with us.
E. Project Milestone
Milestones Deliverables Date
Start of the Project Schedule of tasks List of September 08, 2016
Distributed tasks among
the members:

33
 Ann Jimenez -
Introduction and Editing
of works of the members.
Hylen Bellao -
Assumptions
Diana Dadulla - Logo and
Project Scope
Rainvick Gante - Project
Risks
Kristine Mendoza - Project
Objectives
Jazel Ramirez- Success
Measurements
Jemimah Serquina -
Assumptions
TJ Umali - Project
description and Roles and
Responsibilities.
Idea of Proposing the
Open Symposium Newly Developed SABM September 15, 2016
Tracking System.
Short reports with project
Processing of the Project activities as well as project September 29, 2016
monitoring.

F. Roles and Responsibilities

Project Leader: He/She should lead in the planning and development of the project;
Problem Solver; Active all throughout the project; Distributes the tasks assigned for
each member in the team; Manages and maintains all documentation including the
project plan; report and forecast project status; Frequently checks whether the project
have errors or error-free; Motivate the team members to finish their tasks; ensure that
the projects product meets the business objectives.
Name Email / Phone #
JIMENEZ, Ann Marinelle S. annmarinellejimenez@gmail.com -- 0936-456-0626
Team Member: Their responsibilities include giving of creative and realistic ideas that
will improve the development of the said project; Gathering of relevant and factual data
that will support the research; They need to communication and cooperate with one
another which includes the team leader for a better flow of information and updates
about the system within the group.
Name Email / Phone #
BELLAO, Hylen D. hylenbellao@gmail.com -- 0907-271-5318
DADULLA, Diana Grace A. msmds_dadulla@yahoo.com -- 0906-378-1173

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GANTE, Rainvick Ayrand lorienelder@gmail.com -- 09263630619
MENDOZA, Kristine Marie krstnmndzaa@gmail.com -- 0927-745-1870
G.
RAMIREZ, Jazel Kate R. jazelkateramirez@yahoo.com 0905-411-4217
SERQUINA, Jemimah jemimah_zorren10@yahoo.com -- 0936-458-6674
UMALI, Trojohn O. trojohnu@yahoo.com -- 09057386055
G. Project Risks
Risk Mitigation Strategy
Delayed Delivery Create an accurate documentation.
Train and educate employees for proper
Costly/ Expensive Repairs
management of the system.
Information regarding sender and receiver
Misrouted goods
should be clearly documented.
H. Success Measurements
SABM Express aims to improve its own tracking system, with this it will incur an
estimated amount of P1,000,000. But, with the succeeding operating month
customer satisfaction will increase at least 60%, thus making the profit increase
with the average amount of P120,000 per month.

I. Signatures
Project Leader
Name Signature Date
JIMENEZ, Ann Marinelle S. October 13, 2016
Project Members
Name Signature Date
BELLAO, Hylen D. October 13, 2016
DADULLA, Diana Grace A. October 13, 2016
GANTE, Rainvick Ayrand October 13, 2016
MENDOZA, Kristine Marie October 13, 2016
RAMIREZ, Jazel Kate R. October 13, 2016
SERQUINA, Jemimah October 13, 2016
UMALI, Trojohn O. October 13, 2016

35