KALAUSI FOOD MANAGEMENT SYSTEM.

NAME: OCHIENG DOUGLAS OMONDI

INDEX NO: 2292030005
PROJECT NAME: TRADE PROJECT
SUPERVISORS NAME: MR JAMLICK IRUNGU
COURSE CODE:1920/207
SUBMITTED TO:
CENTER NAME: MICHUKI TECHNICAL
TRAINING INSTITUTE.
CENTER CODE:2292030

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DECLARATION
I OCHIENG DOUGLAS OMONDI declare that this proposal is my original work. It has never
been presented to KNEC or any examination body and it will not be presented again at any given
time.
Presenter name: OCHIENG DOUGLAS OMONDI
Sign………………………………..
Supervisors name: MR JAMLICK IRUNGU.
Sign………………………………

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DEDICATION
I dedicate this proposal system to MR JAMLICK IRUNGU and also the cordial teaching staff in
michuki technical institute who have been a source inspiration and knowledge me.
I dedicate it to my entire be loved family, friends and the national examination body of kenya

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ACKNOWLEGEMENT
My heart goes for my supervisor MR JAMLICK IUNGU, the HOD MICHUKI TECHNIAL
INSTITUTE and the cordial teaching staff who are my source of acknowledgement in
undertaking the course.
I would like to extend my appreciations to my parent: VICTORIA KEMUNTO and my relatives
for their great support to see me succeed in life. Lastly my special thanks goes to my friend
kennedyochieng and the rest who have been a source of inspiration to me. May God bless you all
for the great support you have addressed me in life

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 ABSTRACT
KALAUSI FOOD PROCESSING MANAGEMENT INFORMATION SYSTEM
Kalausi food processing company was started in the year 1990’s as a small factory owned by the
government of Kenya. It is located at Awendo town found in AwendoSub-county of Migori
County. The factory manufactures different types of products such as sugar; sweets; and
molasses’s for animal feeds. The factory has several departments which include: receiving;
recording; storing; manufacturing; packaging; sales; and finance departments. The project seeks
to propose the need of installing an automated system at Sony Sugar factory to enable a more
efficient an effective way of service provisions. Currently it is using a manual system in its
operations which is slow thus, poor service provision. The factory needs to adapt to the use of
technology which makes service provision easier and some problems can be easily solved such
as updating, retrieving and storing of data and records.
Kalausi Food Processing Management Information System proposal aim to give an idea of how
Kalausi Food processing company can be computerized to minimize resource wastage.

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TABLE OFCONTENTS
DECLARATION..........................................................................................................................................i
DEDICATION............................................................................................................................................ii
ACKNOWLEGEMENT.............................................................................................................................iii
ABSTRACT...................................................................................................................................................iv
TABLE OFCONTENTS..............................................................................................................................v
CHAPTER ONE..........................................................................................................................................1
1.1 INTRODUCTION.............................................................................................................................1
1.2 OBJECTIVES OF THE AUTOMATED SYSTEM...........................................................................1
DESCRIPTION OF THE SYSTEM............................................................................................................1
Recording Department.............................................................................................................................1
Receiving Department.............................................................................................................................2
Storage Department.................................................................................................................................2
Manufacturing Department......................................................................................................................2
Packaging Department.............................................................................................................................2
Sales and Marketing Department.............................................................................................................2
Finance Department.................................................................................................................................2
STATEMENT OF THE PROBLEM...........................................................................................................3
OBJECTIVES OF THE STUDY.................................................................................................................3
SIGNIFICANCE OF THE STUDY.........................................................................................................4
LIMITATIONS OF THE STUDY...........................................................................................................4
SCOPE OF THE STUDY........................................................................................................................4
CHAPTER TWO.........................................................................................................................................5
2.0 LITERATURE REVIEW..................................................................................................................5
2.1 REVIEW OF RELATED STUDIES.................................................................................................5
Increased Accuracy..............................................................................................................................5
Reduced in Stock-Out Cases................................................................................................................5
EXCESSIVE INVENTORY................................................................................................................5
DATA SECURITY AND EFFICIENCY............................................................................................5
LEARN THE IN’S AND OUT’S........................................................................................................6
CHAPTER THREE.....................................................................................................................................6
3.0 METHODOLOGY AND DESIGN.......................................................................................................6
3.2 FEASIBILITY STUDY.....................................................................................................................6

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 3.2.1 Technical Feasibility...................................................................................................................6
3.2.2 Operational Feasibility................................................................................................................6
3.2.3 Economical Feasibility...............................................................................................................6
3.2.4 Scheduled Feasibility..................................................................................................................6
3.4 DATA COLLECTION..........................................................................................................................7
3.4.1 Data Collection...............................................................................................................................7
3.4.2 Data Collection Instruments.......................................................................................................7
3.4.2.1 Interviews................................................................................................................................7
3.4.2.2 Observation..................................................................................................................................7
3.4.2.3 Questionnaire...............................................................................................................................7
3.5 FINDINGS........................................................................................................................................7
APPENDIX 1..............................................................................................................................................8
QUESTIONNAIRE.....................................................................................................................................8
APPENDIX 2..............................................................................................................................................9

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CHAPTER ONE
1.0 BACK GROUND INFORMATION
Kalausi food processing management system was started in the year 1990’s as a small factory
owned by the government of Kenya. It is located at Awendo town found in AwendoSub-county
of Migori County. The factory manufactures different types of products such as sugar; sweets;
and molasses’s for animal feeds. The factory has several departments which include: receiving;
recording; storing; manufacturing; packaging; sales; and finance departments. The project seeks
to propose the need of installing an automated system at Sony Sugar factory to enable a more
efficient an effective way of service provisions. Currently it is using a manual system in its
operations which is slow thus, poor service provision. The factory needs to adapt to the use of
technology which makes service provision easier and some problems can be easily solved such
as updating, retrieving and storing of data and records.
1.1 INTRODUCTION
Research has found that the factory was undergoing some of the following challenges: loss of
records; updating of records was slow as well receiving of raw materials; and financial losses.
The company was started so as to provide employment and services to the community and
Kenya at large.
1.2 OBJECTIVES OF THE AUTOMATED SYSTEM
 To automate records to avoid data loss.
 To avoid time wasting during receiving of raw materials.
 To ensure that data can be accessed easily and faster.
 To reduce clerical work load.

DESCRIPTION OF THE SYSTEM

Recording Department
It is where all the records are kept. The clerk in charge fills the details of the goods as they arrive
in the factory and they describe the condition of the goods as they are. They enter details like
names of goods, vendor name, amount received, spoiled and unspoiled goods. An automated
system will automatically record the goods, do the selection and record quantity of goods
received generally.

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Receiving Department
It’s where receivership and further selection of goods is done and the clerk in charge has to
record them. In this department a lot of time is wasted because the clerk has to do proper
recording of received goods and the quantities received. Goods are carefully selected and
inspected if fit for production and then unfit goods are recorded and returned. Goods in good
condition are recorded and forwarded to the storage department. Therefore, an automated
system can help in making these processes easier whereby the goods are automatically recorded,
further selected, inspected and isolated as they are being received.
Storage Department
Its where received goods which have been inspected and approved are coded, stored and later
used in manufacturing of products Before storage is done the clerk has to do more inspection and
selection and record the amount received. Coding will be done and then they will be stored. An
automated system will help in easier identification, inspection and storage of goods: whereby the
goods will be instantly recorded, identified according to type, further inspected if fit for
production and allocated storage space automatically.
Manufacturing Department
Its where manufacturing of products is done. The manager in charge will have to place an order
of the amount and type of goods and items required for production before manufacturing of
products is done. An automated system will assist the manager in placing the orders which will
be received automatically by the inventory department.

Packaging Department
It’s where manufactured products are taken for recording, inspection and packaging. Products are
packaged according to different weights and containers. The containers and items used for
packaging have to be labelled and selected according to weight and size. An automated system
will weigh the products and package them selectively.
Sales and Marketing Department
In this department sale of products is done. Purchase orders are bought and the department has to
liaise with the packaging department before confirming the orders placed. An automated system
can assist in easier confirmation of orders and making of sales faster. It will also help in
communicating with customers from different locations and enable them to place orders.
Finance Department
This department facilitates payments and all financial transactions are made in this department.
An automated system will help in making financial transactions easier and faster. Tracking of all
financial transactions will be easier and will help to promote accountability.

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STATEMENT OF THE PROBLEM
The researcher criticized the current system on the following basis:
 In the receiving department difficulties arise when new orders are made and upon
receiving the goods the recording clerk has to enter the details manually which results in
using a lot of time and sometimes some records are lost.
 Too much of paper work in all departments which leads to opening of many files and it
becomes difficult when retrieving files because a lot of time is wasted when trying to
locate a file.
 Errors arise when it comes to pricing of large quantities of products leading to
mathematical errors which can lead to losses.
 There can be loss of receipts as they are produced through carbon copy.
It was noted that the current system does not meet the customers’ expectations which lead to the
need of installing a software that will help in improving of services, management of inventories,
avoid time wastage, reduce loss, and maximize profits.

OBJECTIVES OF THE STUDY

 To investigate on the use of technology in the delivery of services.
 To investigate on the efficiency of using a manual system.
 To identify the completeness, timeliness, and adequacy of services delivered by the
system to its customers.
 To reduce paper work and improve efficiency, accuracy and data safety through the use
of passwords.
 To reduce the number of manpower in the company thus reducing the amount of money
used in payments of salaries.
Generally the researcher wanted to know how to reduce the cost incurred and cost lost due to the
use of a manual system in the company and how to maximize profit made by using alternative
electronic system.
Also develop a system that will support the operations of the company in order to realize the
strategic vision of the company and improve customer satisfaction.

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SIGNIFICANCE OF THE STUDY
The new proposed management information system will be of great benefit to both the company
and its customers. This is because:
 As a result of automating the records department there will be faster retrieval of goods
and services from the racks and also safety of the records.
 Customers will be able to order for goods and services faster and also make payments
promptly and evidently.
 Financial and recording errors will be reduced.
 Information will be safely stored and easily retrieved when need arises.
 More profits will be made due to reduced loss of cash brought about by cash payments.
 The system will improve employee morale because their work will be simplified.
 Because of improvements in all the departments; the company will be able to deliver a
significant amount of products on time and within the approved budget.
LIMITATIONS OF THE STUDY
During the research some challenges were experienced such as time limitation, financial
challenges, and lack of response while using questionnaires to get information.
SCOPE OF THE STUDY
The research focused on automating of services at Sony Sugar Company in Migori County to
improve on service provision to customers.

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CHAPTER TWO
2.0 LITERATURE REVIEW
In this chapter the researcher cites studies done by different authors who developed different
views and opinions concerning the automation system.
2.1 REVIEW OF RELATED STUDIES
The different authors arrived in a conclusion that using an automated system will have the
following benefits:
Increased Accuracy
Delaunay cited ten related articles framework for an exhaustive review of literature on the
automation of inventory management systems are inaccurate hence Delaunay recommended for
the automation of the inventory management system to improve or increase accuracy in order to
maximize profits.
Reduced in Stock-Out Cases
According to Victor Attinson on the inventory management system topics essentially, ‘inventory
management system is a reserve system to prevent stock-out’. Victor defines stock-out as ‘a
situation whereby an organization runs out of stock’. Therefore he recommended for the
automation of inventory warehouses to be able to track stock on hand, the re-order level hence
reducing stock out cases.
EXCESSIVE INVENTORY
Keeping too much stock can be a major cash drain according to Dan Kehrer, ‘items sitting’ for
extended periods of time in your warehouse represents idle capital that could put to more
productive use. Dan Kehrer highlighted the need of having an inventory management system
which will be able to track movements of stock. According to Demand ‘the key is knowing the
minimum amounts your business needs to keep at a given time.

DATA SECURITY AND EFFICIENCY

The 1980’s government white paper handled the issue of data security. A committee chaired by
Sir LINDOP in 1981 came up with ideas on how to secure organization /department data. In
1986 data protection act was passed to regulate the use of automatically processed information
relating the individuals and provision of goods in respect to such data. Thus in automation of
warehouses the data will be secure because computers maintain high standards of security than
the manual system.

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LEARN THE IN’S AND OUT’S
There is need to know how and when to order, how to receive items, how to track stock and how
to monitor sales and returns. In short there is need to have an inventory management system that
can indicate what is there, what is arriving at the market and what is going out.

CHAPTER THREE
3.0 METHODOLOGY AND DESIGN
This chapter outlines the methodology the researcher used in the development of Sony Sugar
inventory management system. It also outlines the procedure and techniques used in coming up
with data.
3.2 FEASIBILITY STUDY
3.2.1 Technical Feasibility
This is concerned with specifying equipment and software that will successfully satisfy the user
equipment. The technical needs of the system may vary considerably but might include:
 The facility to produce outputs in a given time.
 Response time under certain conditions.
 Ability to process a certain volume of transactions at a particular speed.
 Facility to communicate data to distant location.
After examining technical feasibility, there is need to give more importance to the configuration
of the system than the actual makes of hardware.
3.2.2 Operational Feasibility
The researcher found that the new proposed system as being operational feasible because the top
management support it due to its anticipated benefit like security, profit increment and
efficiency. The end users also are glad and ready to be trained on how to use the system
efficiently and effectively.
3.2.3 Economical Feasibility
Economic analysis is the most frequent used technique for evaluating the effectiveness of a
proposed system more commonly known as cost/benefit. Analysis in the procedure will
determine the benefits and saving that are expected in this procedure we determine the benefits
and saving that are expected from the proposed system and compare the cost, we take a decision
and implement the new proposed system.

3.2.4 Scheduled Feasibility

The researcher used cluster sampling to conduct the research by going to each department. The
researcher chose cluster sampling over the other methods of sampling in order to get information

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that is structured in a way that the researcher will be able to know the needs and weaknesses of
the current system in regard with the views of each department.

3.4 DATA COLLECTION

3.4.1 Data Collection
The researcher came up with an introductory letter from the principal of Michuki Technical
Training Institute and presented it to the manager of Sony Sugar Company. The manager
scheduled for the data collection which took place a week after presentation of the introduction
letter.
3.4.2 Data Collection Instruments
The researcher used interviews, questionnaires and observation in fact finding and collecting
required information from the organization.
3.4.2.1 Interviews
This involved direct conversation with the respondent by asking questions face to face where
they answered promptly. During the conversation, the researcher came up with information
(first-hand information) which was very reliable.
3.4.2.2 Observation
The researcher observed how daily routines in the organization happens especially in serving
their clients. The observation helped the researcher to get and understand how the current system
worked and it also held the researcher to come up with an idea of the flow of the proposed
system in mind.
3.4.2.3 Questionnaire
The researcher designed the questionnaire for each department whereby the researcher framed
simple and understandable questions that helped in obtaining exact data required because the
researcher gave the respondents enough time to fill the questionnaires and finally collected them.
3.5 FINDINGS
Based on the information collected, the researcher found the research to be technical feasible
because of availability of resources in terms of hardware and software because the company has
financial resources to purchase.

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APPENDIX 1
QUESTIONNAIRE
DATE…………………………………..
TIME……………………………………
VENUE………………………………….
When did the organization begin?
What problem have encountered since then?
a) Which main department would you like to have automated
b) What is the general view of the staff on the proposed system
c) From the perspective of ict what benefit do you expect once the proposed system is
implemented
d) Do you believe that all the erasures made by using the manual way will be totally
eradicated once the new system becomes operation

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APPENDIX 2
INTERVIEWEE NAME…………………………………………
INTERVIEWER NAME…………………………………………
DATE…………………………………….
VENUE……………………
TIME……………….

a) When was the company established?

b) What factors led to establishment of the company?
c) Is it a government, private company?
d) What are the main duties and responsibilities of the manager in this company?
e) Which factor led to automation of the company’s system?
f) What are the main challenges encountered by the employee’s in the company.
g) Do you support the automation of the current system?
h) How is the management prepared to handle this program?