CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

As today’s technology offers different complex devices. Business procedure has

been improved thru the use of it that resulted to an easier transaction, faster processing

and providing meaningful reports that leads to a good decision making. With these

advancements of technologies, a single action on the computer can gross important

processes of an organization or a department.

The goal of Concepcion Holy Cross College, Inc. is to provide a quality education

that develops the passion for the people of Concepion, Tarlac that is strengthened and

supported by a set of core values.

Staffs manually do their work especially on paper works that would lead them

use so much of their time working on the papers. Then, information technology was

introduced in the society that increases the accuracy and productivity of their processes.

Automation of the manual process leads to the increase of productivity and efficiency.

For the past years in Concepcion Holy Cross College, Inc., procurement and

monitoring of supply is hard for the person in charge to store and keep track for the

supplies because it is done manually. Actual count of items is one at a time counted but

with automated system, actual count of items coming in and out will be monitored real

time.
 The problems they are experiencing now is that, the management needed an

automated monitoring system which will provide an accurate, fast, efficient and reliable

results so as to maximize working time, lessen human intervention errors for their

supplies management. The issue that they encounter was inaccurate data and they

cannot easily track supplies in their office if it was transferred and its current status. And

they said that some of the items are misplaced and are not counted in their inventory.

The process for procuring of supplies. An employee procures an item from the

supply section. The automated system will generate a fill up form where each employee

can request their desired equipment or supply. Once they have filled up the necessary

information on the form, their request will be sent to the administrator for its approval

and if it is approved then it will be pass to the supply officer for issuance. Once the

transaction was done the system will now make a printable output for a hard copy

reference of the items requested by a certain department or employee. The

Procurement process contains the date of each transaction like when the item was

requested, acquired, released and received.

Supply Inventory, is basically a systematized way of storing resources within a

certain unit or department. It is basically a process of tracking any kind of supplies,

depending on the department’s needs.

Monitoring, this is a system that will monitor the moving supplies, where it is

designated and what its current status. Monitoring is one of the primarily activities in an

agency, departments and an organization because this help the business improve their

performance or operations in collecting and storing the needed information.

 This study aims to develop a computerized system for the Concepcion Holy

Cross College, Inc., that will automate the transactions managing their supplies. This

include a procurement, inventory and supply monitoring system for accurate and faster

transactions. Because of this, the system aims to reduce the time of work of employees

and they will be more updated on statuses of their supply. They will able to track every

supply transaction done.

The Supply Monitoring system aimed to provide a reliable, accurate and secured

information system that will help the regional office doing the task efficiently. The

system will manage all transaction and processes in the administration office of

Concepcion Holy Cross College, Inc. Furthermore, the system will be designed to meet

the client’s expectations through eliminating most problems that the office faces.
Research Objectives

General Objective

This study aims to develop a supply monitoring system that would manage

supplies from procurement to distribution of Concepcion Holy Cross College, Inc.

Specific Objectives

1. To develop a procurement and monitoring system that will simplify the procedure

of requesting supplies.

2. To build an inventory system that will monitor and update the status of supplies.

3. To develop a system that will keep track of the issued supply.

4. To generate needed reports for requesting and procurement of supply, inventory

and supply monitoring.

5. To evaluate the developed system using the following quality characteristics:

a. Functionality

b. Reliability

c. Usability

d. Efficiency

e. Maintainability

f. Portability
Scope and Delimitations of the System

This study aims to provide a Supply Monitoring system for Concepcion Holy

Cross College, Inc. Operations, transactions and processes done in the supply section

of the office will be the primary focus of this research.

These are the features of requesting supply. When an employee request an item

from the supply officer, the system will produce a fill up form where each employee can

request their desired supply. Upon filling up the form with its necessary information, a

request will be sent to the supply office to check if the stocks are available. The system

will notify if the quantity reaches its lowest limit. There will be acquisition feature in the

system, if there are no stocks available in supply division, the system can generate a

purchase request form to be filled up and wait for the approval of the managing director.

When the items arrived, it will be recorded in the inventory. There will be a Supply

Acknowledgement Receipt if the item will be released by the supply officer and indicates

who receives and issues the item. The process of requesting supply contains the date

of each transaction like when the item was requested, acquired, released and received.

The monitoring system will cover all supplies in the office. The system will

monitor the available stocks of each item. It can add, update and delete an item from

the stocks. Each equipment has their own depreciation value. There will be a

notification when the quantity of a single item reaches the lowest limit or the reordering

point. It will also contain the date requested by an employee and when the supply was

received.

Moreover, the system will also keep track of items transferred from the supply or

its current place to where it will be designated.

 Furthermore, the system will generate necessary reports with its annual and

monthly physical counts of inventories for Supply.

The study entitled “Supply Monitoring System” target to give an accurate,

reliable, and secured information system that will help Concepcion Holy Cross College,

Inc. (CHCCi). in doing of their task efficiently. Managing all major transaction with

regards to monitoring the supplies will be designed to meet the clien’ts suggestions and

expectations.

Significance of the Study

This study aims to develop a Supply Monitoring system that monitor all the

supplies for Concepcion Holy Cross College, Inc. to make every transaction automated.

Employees. The propose system can lessen the work load of every employee in

the office and errors due to human intervention.

Supply Section Staff. The system will help them in storing and monitoring their

current status of the supplies wherein they can manage inventory more accurate and

efficient.

Researchers. This study will give additional learning to the development group

as well as improve their critical thinking and decision-making ability.

Future Researchers. Findings of this study would be helpful to future

researchers for they can use this as a reference if they are planning to conduct the

same study.
Definition of Terms

Procurement. Is the act of acquiring, buying goods, services or works from an

external source, often via a tendering or bid process. It is favorable that the goods,

services or works are appropriate and that they are procured at the best possible cost to

meet the needs of the acquirer in terms of quality and quantity, time, and location.

Inventory System. Inventory management is a science primarily about

specifying the shape and percentage of stocked goods. It is required at different

locations within a facility or within many locations of a supply network to precede the

regular and planned course of production and stock of materials.

Supply Monitoring. Generally, a monitoring system is used for the observing of

persons or objects on the move and supplying a timely ordered sequence of respective

location data to a model e.g. capable to serve for depicting the motion on a display

capability.

System. Assembly of a computer hardware, software and peripherals which are

systematically functioning together.

Supplies. Materials and/or goods available on stock.

Notes

1st
http://www.procurement.org/#!software/c1n9m
2nd
https://en.wikipedia.org/wiki/Tracking_system#cite_note-2
 REVIEW OF RELATED LITERATURE

This chapter presents relevant ideas and some information of other systems or

studies about the proposed system. It serves as the reference to give better idea and

understanding about the study.

Foreign Literature

According to (Warren R. Planret, 2002) Inventory is one of the most important in

monitoring a stock that take place in business activity. The inventory system does the

entire task in computing the value with inventory (cost and quality) and handling data or

information. Inventory System maintains an orderly flow of supplies, raw materials, or

finished goods through an office shop/factory because of items in any inventory.

Represents cost, they need to be controlled. The purpose of inventory system for

management are to keep inventory levels and cost at desire minimums while

maintaining to proper safeguards over materials to places and people who need them.

Inventory review refers to the time interval between counting inventories. Periodic

review systems have a set schedule for conducting an inventory count. Transactional

review systems update the inventory count after each transaction. Periodic review is

less resource intensive but more prone to creating shortages and inventory

discrepancies while transactional review is more accurate but requires more resources.
Inventory costs can be broken into several categories: the actual cost of the inventoried

product, the cost of storage and the cost of unmet demand if inventory is not available

to fill orders. Additional costs include transportation and ordering costs incurred when

replenishing inventory. Each of these costs is inventory means goods and materials, or

those goods and materials themselves, held available in stock by a business. This word

is also used for a list of the contents of a household and for a list for testamentary

purposes of the possessions of someone who has died. In accounting, inventory is

considered an asset. Inventory proportionality is the goal of demand-driven inventory

management.

As per Zierpen in 2009, Inventory management systems were created to help

dealerships implement, maintain, and fine-tune their inventory plans. Dealers who use

inventory management systems realize quicker vehicle turns and a higher ROI than

dealers that don’t. Choosing the right system can make a significant contribution to your

inventory management efforts. This strategy helps a lot to come up with a successful

outcome.

 
 According to Janes (2011) stated that computers are extremely reliabledevice

and very powerful calculators with some great accessories applications like word

processing problem for all of business activities, regardless of size, computers have

three advantages over other type of office equipment that process information because

computer are faster, more accurate more economical.

 According to Reyes (2005) task would be time consuming to accomplish

manually and more practical with the aid of computers field in cabinet.

According to (Warren R. Planret, 2002), inventory is one of the most important in

monitoring a stock that take place in business activity. The inventory system does the

entire task in computing the value with inventory (cost and quality) and handling data or

information. Inventory System maintains an orderly flow of supplies, raw materials, or

finished goods through an office shop/factory because of items in any inventory.

Represents cost, they need to be controlled. The purpose of inventory system for

management are to keep inventory levels and cost at desire minimums while

maintaining to proper safeguards over materials to places and people who need them.

Inventory review refers to the time interval between counting inventories. Periodic

review systems have a set schedule for conducting an inventory count. Transactional

review systems update the inventory count after each transaction. Periodic review is

less resource intensive but more prone to creating shortages and inventory

discrepancies while transactional review is more accurate but requires more resources.

Inventory costs can be broken into several categories: the actual cost of the inventoried

product, the cost of storage and the cost of unmet demand if inventory is not available

to fill orders. Additional costs include transportation and ordering costs incurred when

replenishing inventory. Each of these costs is inventory means goods and materials, or

those goods and materials themselves, held available in stock by a business. This word

is also used for a list of the contents of a household and for a list for testamentary

purposes of the possessions of someone who has died. In accounting, inventory is

considered an asset. Inventory proportionality is the goal of demand-driven inventory

management.

Foreign Studies

Thomas M. McHugh (2011) in his study entitled computerized inventory

management system, stated that computerized inventory management systems provide

many benefits that are hard to obtain using paper methods or an in-house spreadsheet.

Systems that are specific to the lab can be used relatively quickly without a significant

learning curve or system customization. The ability to analyze the inventory, item usage,

purchasing history, and other areas (e.g., lot numbers, equipment) are important

improvements to spreadsheets and paper systems. If the system includes equipment

tracking, it can be used to determine the capital asset as well as track the service

history and lifespan of equipment. The ability to streamline and automate many of the

inventory control tasks will be increasingly important to reduce hands-on time while

improving the analysis of trends, reducing stock-outs, and avoiding expiring reagents.

The ability to ensure that the right reagent in the right quantity is present at the right

time is critical to laboratory operations. Given that reagents are approximately one-half

of most labs' operating budgets, a continued focus on this expense will assist the

laboratory in continuing to provide accurate and timely laboratory testing at the lowest

cost.
 According to Dan Brian (2011), a lot of the websites we visit nowadays are

testing and requiring that we create so-called "strong" passwords. Unfortunately, it is not

a practice that every site accommodates, whether because it has not update, edits code

to meet these most recent standards, or simply because it lacks the resources to do so.

It is then up to the user to create its own personal "Security Best Practices" as to

facilitate the management of these identities, starting with the creation of easy-to-

remember, yet strong enough passwords.

Local Literature

Inventory

Inventory refers to any kind of resources having economic value and is

maintained to fulfill the present and future needs of the consumers. It is a physical stock

of items that business or production enterprise keeps in hand for efficient running of

affairs or its production. Inventory is the quantity of goods, raw materials or other

resources that are idle at any given point of time. Inventory control is the means by

which materials of the correct quantity and quality is made available as a when required

with due regard to economy in storage and ordering costs and working capital. It is also

defined as the systematic location, storage and recording of goods in such a way that

desired degree of service can be made to the operating shops at a minimum ultimate

cost” (S.C sharma (1999). P. 509, 512).

According to Juanito Villegas (2009), the computers can only do much, but

coupled with inculcating honesty among staff and instituting the appropriate deterrents,
they can work very well in minimizing losses and pilferages. It is therefore highly

advisable to do both the manual and the computerized inventory system in a retail and

wholesale business.

Manage Information System

A management information system provides information which is needed to

manage organizations efficiently and effectively. Management information system

involves three primary resources: people, technology and information. Management

information system is distinct from other information systems in that they are used to

analyze operational activities in the organization. Academically, the term is commonly

used to refer to the group of information management methods tied to the automation or

support of human decision making (Jane, 2009).

Management information system was used by the proponents to manage their

system efficiently and effectively.

System Development Lifecycle

According to Anderson (2006), the system development lifecycle, or software

development lifecycle in system engineering, information systems and software

engineering, is a process of creating or altering information system, models and

methodologies the people use to develop this system. In software engineering the
SDLC concept underpins many kinds of software development methodologies. These

methodologies form the framework for planning and controlling the creation of an

information system: the software development process.

MySQL

The world’s most used relational database management system that runs as a

server providing multi-user access to a number of databases. It is name after developer

Michael Widenius’ daughter, My. The SQL phrase stands for Structured Query

Language. The MySQL development project has made it source code available under

the terms of the GPU, General Public License, as well as under a variety of proprietary

agreements. MySQL was owned and sponsored by a single for –profit firm, the Swedish

Company MySQL AB, now owned by Oracle Corporation (Thomas, 2007).

MySQL was used by the proponents as their database for their system.

Local Studies

Sales Monitoring System

The accelerated work structure of the company proper monitoring is essential in

order to keep track of the company’s sales activities. The system aims to come up with

an efficient, and accurate mechanized system of preparing invoices that will keep track
of the daily transaction and generate reports. Important information will be provided by

this study in order to prove that the computerization of the company’s operation and

achieve a more reliable and efficient means of monitoring day to day activities. The

system focuses on the analysis and design of the sales monitoring system which will

monitor the stacks inventory of the sales departments. This system is somewhat related

to the study but it focuses more on the inventory monitoring system of a trading

company. Popular author of Accounting, Waldo T. Passion (1990) in his book stated

that, to improve their efficiency and reduce their cost of operation. Reports are more

timely and accurate. Computers have large capacity to store data and tremendous

speed to manipulate and recall data to the format a user wishes to use which the

introduction of microcomputer computation of business is more affordable (Anna Marie

Beltran, 1995).

Computerized Sales and Inventory System

The proponents used database to make a convenient access of files for easier

and faster processing of the selling and inventory transaction. The program was

designated to generate reports such as monthly reports, inventory reports, sales invoice

and list of items (J. De Leon, M. Ferrer, 2001).

Computer Based Inventory, Record Keeping and Monitoring System for the

Property and Equipment

 According to Ronalyn G. Tolentino, the world we live in has been transformed

immensely with the advent used of the information. At this time, almost every aspect of

the human life is influenced by the rapid advancement of technology providing us with

the novel opportunities and fresh challenges at the same time. Computerized inventory

system is a computer program that track Inventory and creates automated

replenishment order. Computerizing the inventory system brings the organization the

potential improvement in accuracy and speed through better analysis of inventory

trends, including the pattern of processing and recording. Furthermore, immediate result

will be more timely and accurate information about, item presently on hand. Additional

equipment and property personnel could encounter fewer burdens, less effort on

processing transactions, and may avoid misplacing or loss of records.

Sales and Inventory System Software developed for a Company

The system has been designed to achieve maximum efficiency and reduce the

time taken to handle the payroll activity. It is designed to replace an existing manual

record system thereby reducing time taken for calculations and for storing data. The

system is strong enough to withstand regressive daily operations under conditions

where the database is maintained and cleared over a certain time of span. The

implementation of the system in the organization will considerably reduce data entry,

time and also provide readily calculated reports (Santiago, Acopiado, Dabodabo &

Gomez,2015).
Property Inventory System

The thesis entitled “Property Inventory System of Cavite State University-Imus

Campus” was conducted by Pereña, Lester (2007). The study aimed to develop a

Computerized Property Inventory System in a client-server environment. It was

conducted to enhance efficiency and productive of personnel in the supply office in

recording of properties of the university.

The proponents used different methods in gathering data such as interview and

research through reading and surfing the net.

The data flow diagram was used in analyzing system in developing the software,

integration of waterfall and rapid prototyping paradigm was used. A series of test such

As visual basic is the programming language used by the proponents to develop their

system.