CHAPTER ONE: INTRODUCTION

1.0 Introduction
An inventory control system contains a list of orders to be filled and then prompts
workers to pick the necessary items; also it provides them with packaging and
other valid information.

Inventory control may be used to automate sales order fulfillment process and also
manage in and outward movement of items. Automation is the replacement of
human workers by technology. For optimal sales and inventory management
process, robust functionality is needed for managing logistics facilities. A Stock
Management system is a tool used to track goods and services of a company, it is a
process that integrates the flow of supplies into, and out of an organization to
ensure right quality and quantity at right cost, Nabil and Govardhan (2010).

An automated stock management system is a computerized method of controlling

sales and product in a company. This application will maximize efficiency, reduce
labour and avoid over cost. It will be efficient in tracking goods on a daily basis,
the inventory software will enhance flow of goods, improve customer service and
also enhance the flow of cash, (Saleemi, 2009).

1.1 BACKGROUND OF STUDY

Before the Industrial Revolution, merchants basically had to write down all of the
products they sold each day. Then they had to order more products based on their
hand-written notes. This was totally inefficient and inaccurate way of doing
business. They couldn’t really account for stolen goods unless they did time-
consuming physical counts on a regular basis which seem to be more tedious. They
also encountered errors making sure they got the right number of products when
orders came in because of sparse record keeping, then a team in Harvard
University worked together looking for better ways in which stock management
could be effective. They sat down trying to design how a computer would read the
punch cards and pass the information to the storeroom, According to (Saleemi,
2009), stock management comprises various actions taken by the management to
reduce cost, maintain production, continuous supply and reduce loss. And today
the computerized method of managing inventory has taken over the manual
method.

1.2 STATEMENT OF THE PROBLEM

So many companies are unable to computerize their inventory system because of
funding computerization involves the use of machines, which to a large extent
work automatically, and in this way saves human labor, recording errors, and also
1
saves time. Effective implementation of computerization in organization requires
attitudinal change and initiating a program of a comprehensive training and
education on the use of computer and relevant software application.

This project-computerization of inventory control system is another contribution to

several other aided systems in the field that might have developed to further
emphasize the importance of the use of computer in all areas of human life. ND
General Computers Nigeria Limited, a private organization is been used as a case
study. Some activities are being carried out manually and have the following
weakness Capron H. L. (2016):
 disorganized records
 Delay in the processing of the daily transactions
 Overstocking and under stocking
 Theft / data is not

1.3 AIM AND OBJECTIVES OF THE STUDY

The aim of the study is to design and implement a stock management system for
ND General Computers Nigeria Limited, which will help track inventory level as
stocks are being sold. And to make the services rendered are efficient, and also to
eradicate long queues, or scenario where customers are delayed before they are
attended to. It will also help the supermarket know when to re- order, pickups,
shipping etc., it will also help generate bill orders item tracking, service
management, product identification, inventory optimization/ flexibility and a user
friendly interface.

1.4 SIGNIFICANCE OF STUDY

Creating a transition from an outdated paper based system which adapts the use of
spreadsheet to the automated and modernized system which will help maintain the
right balance of stock in the store is very significant, for a successful business a
system that would ensure the firms have sufficient stocks to meet customers need,
and also aid in monitoring as well as tracking and updating various transactions
going on in the supermarket should evolve for effective management, and
accountability. This is needed to reduce overall cost of operations, and to provide
higher security in order to avoid unauthorized access.

1.5 SCOPE OF THE STUDY

The scope of this study covers ND General Computers Nigeria Limited as a whole,
and its customers which include suppliers and the general public.

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1.6 LIMITATION OF THE STUDY
The major obstacles experienced during the interval of making the project is the
lack of some resources needed and lack of proper information about the operations
in some firms, they feared that passing across some information would either
destroy the company’s reputation and which was stated to be against the
company’s policy, also financial constraints, program failure during the design
stage, poor internet connection. But I was able to advance more in making sure the
project produced quality information needed in finalizing.

1.7 ORGANIZATION OF THE PROJECT

This research work is organized into five chapters. Chapter one is concerned with
the introduction of the research study and it presents the preliminaries, theoretical
background, statement of the problem, aim and objectives of the study,
significance of the study, scope of the study, organization of the research and
definition of terms.

Chapter two focuses on the literature review, the contributions of other scholars on
the subject matter is discussed.

Chapter three is concerned with the system analysis and design. It presents the
research methodology used in the development of the system, it analyzes the
present system to identify the problems and provides information on the
advantages and disadvantages of the proposed system.
The system design is also presented in this chapter.

Chapter four presents the system implementation and documentation, the choice of
programming language, analysis of modules, choice of programming language and
system requirements for implementation. Chapter five focuses on the summary,
constraints of the study, conclusion and recommendations are provided in this
chapter based on the study carried out.

1.8 DEFINITION OF TERMS

Automation: This is the use of technology or computers to control and process
data reducing the need for human intervention.

Database: This refers to a large store of related data on a computer that a user can
access and modify.

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Password: This is a secret code that must be entered into a computer to enable
access to its applications. It is made up of numbers, letters, special characters or a
combination of any of the above categories.

Inventory Control System: A list of orders to be filled, and prompts workers to

pick the necessary items and provides them with packaging and shipping
information.

Computerization: This is the conversion of a manually operated system to a

controlled, organized and automated system.

Data Bank: Is a collection of related data organized in a manner that allow access,
retrieve and use data

Data: These are raw facts or figures that are not yet processed

Research: A careful study of a subject to discover facts, establish a theory or

develop a plan of action based on the facts discovered.

Software: These are sets of logically related instruction given to the computer to
perform specific tasks.

Analysis: The person that is entrusted with the job of systems analysis in an
organization, the same as system analyst

Record: Is a collection of related fields, a record is one complete set of fields.

Information: These are processed data.

Program: A set of instruction given to the computer to use in processing

information.

Input: The data given to the computer to use in processing information.

Files: A collection of related records.

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 CHAPTER TWO: LITERATURE REVIEW

2.1 OVERVIEW OF STOCK MANAGEMENT SYSTEM

According to S.E. Walter (2007) he Stated that, “The term inventory or stock refers
to the list of the product a firm is offering for sale, and the components that make
up the products”. In companies, proper stock management is crucial to ensuring the
efficient operation of your business, stock management is the process by which
items are been tracked, a stock is basically a detailed list of all the items available.
In small scale business, keeping records of items with pencil and a paper may be
sufficient but sometimes not considered efficient. Because as time goes on and the
business grows so does the operations and record tracking becomes too complex.
Every business in this modern age adopts a stock management system to help
organize and make operations very easy.

Stock management helps in identifying necessary requirements, tracking the stocks

used and available ones, it would also aid in efficiently controlling the amount of
stock in order to avoid excess inventory. Further features may include the ability to
generate reports of sales, calculate and analyze the major requirement at a
particular time, and place their next order to the vendors when needed. This whole
process is very tedious and takes a whole lot of time and human effort, which is
why we employ a stock management system Nabil and Govardhan (2010).
Stock management system provides a hub for retailers, to manage all activities
such as sales records, deliveries, generate bill of material, work order, this would
help keep stock at a reasonable level, it is essential for balancing the need for
surplus supplies with the need to reduce cash or capital that is been tied up. The
proposed stock management system will carry out the aforementioned features.

2.2 SOFTWARE DEVELOPMENT LIFE CYCLE METHODOLOGIES

Software development life cycle (SDLC) plays an important role in developing a
new or existing system as it helps to describe the complete requirement of the
system. It is used by developers and will be the basis during the testing phase.
Common methodologies include prototyping, waterfall, iterative and incremental
development, rapid application spiral development, extreme programming and
various types of methodology.

2.2.1 V MODEL
Each phase is completed before the next phase begins. Testing is emphasized in
this method more than the waterfall model. In Nabil and Govardhan (2010) in the
paper that compared the five models of software engineering defined V-shaped life
cycle as a sequential path of execution of processes. The testing procedures are
5
developed early in the life cycle before any coding is done, during each of the
phase’s preceding implementation. Requirements begin the life cycle model just
like the waterfall model. Before development is started, a system test plan is
created. The test plan focuses on meeting the functionality specified in
requirements gathering.

The high-design phase focuses on system architecture and design. An integration

test plan is created in this phase in order to test the pieces of the software systems
ability to work together. However, the low-level design phase lies where the actual
software components are designed, and units are created in this place as well. The
implementation phase is, again, where all the coding takes place. Once coding is
complete, the path of execution continues up the right side of V where the test
plans developed earlier are now put to use.

2.2.2.1 Advantages of V Model

 Each phase has specific deliverables.
 Works well for small projects where requirements are easily understood.
 Simple and easy to use.
 Higher chance of success over the waterfall model due to early development
of test plans during life cycle.

2.2.1.2 Disadvantages of V Model

 Flexibility and adjusting scope is difficult and expensive.
 Very rigid like the waterfall model.
 This model does not provide a clear path for problems found during testing
phases.

Fig. 2.1:V-shape model

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2.2.2 THE WATERFALL MODEL

Waterfall model is a sequential (non-iterative) design process, used in software

development processes in which is seen as flowing steadily downwards (like a
waterfall) through the phases of conception, initiation, analysis, design,
construction, testing, production/implementation and maintenance.

Fig. 2.2 Waterfall process model.

2.2.2.1 Advantages of Waterfall Model

 It is easy to manage due to the rigidity of the model.
 Phases are processed and completed one at a time.
 Waterfall model is simple and easy to understand and use.
 Works well for smaller projects where requirements are very well
understood.\

2.2.2.2 Disadvantages of Waterfall Model

 Poor model for long and ongoing projects.

7
  Once an application is in its testing stage, it is difficult to go back and
change something that was not well-thought out in the concept stage.
 High amount of risk and uncertainty
 It is not a good model for complex and object oriented projects.

2.2.3 PROTOTYPING
A prototype is an early sample, model, or release of a product built to test a
concept or process or to act as a thing to be replicated or learned from. It is a term
used in a variety of contexts, including semantics, design, electronics and software
programming.

Fig. 2.3: Prototype model

2.2.3.1 Advantages of Prototyping Model

 Errors can be detected much earlier.

 User feedback is available leading to better solutions.
 Users are actively involved in the development.

2.2.3.2 Disadvantages of Prototyping Model

 It will increase the complexity of the system as scope of the system may
expand beyond the original plans.
 Incomplete application may cause application not to be used.

8
2.2.4 THE SPIRAL MODEL
The spiral model is a risk-driven process model generator for software projects.
Based on the unique risk pattern of a given project, the spiral model guides a team
to adopt elements of one or more process models, such as incremental, waterfall, or
evolutionary prototyping.

2.2.4.1 Advantages of Spiral Model

 High amount of risk analysis hence, avoidance of risk is enhanced.
 Strong approval and documentation control.
 Additional functionality can be added at a later date

Fig. 2.4: Spiral model.

2.2.4.2 Disadvantages of Spiral Model

 Doesn’t work well for smaller projects.
 It is a costly model to use
 Risk analysis requires highly specific expertise.

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2.3 THEORETICAL FRAMEWORK
Stock management system has adopted a method which work in real time using
technology to transmit information to a central-based computer system as
inventory, which is then monitored and as transactions occur to ensure efficient
operations and an organized management system and generate detail-oriented
records and also better records and reports that cover all aspects of the business
Sande, O.F. (2013).

1. WAREHOUSE MANAGEMENT SYSTEM

According to who we refer to as the father of data warehousing Sande, O.F. (2013)
described it as a “system built to solve a special purpose inventory management,
financial record keeping, purchase of goods and services. Etc.”. German economist
Johann Heinrich von Thunen, is regarded as the ‘father of location theory (1820)”.

2. HISTORY
The concept of warehouse management originated in ancient Egypt as people
sought ways to manage grains gathered from crops. In fact, their development
meant keeping records of grain on papyrus to prevent famine in times of drought.
As the world moved forward the basic concept of managing warehouse inventory
did not change, at some point the management was done with the use of a pen and
a paper, which appeared to be less efficient and sometimes these records were
vulnerable to errors or getting damaged or tampered with, this understandably
made things more difficult cause the bigger your business became. Once
computers were invented, things were a bit efficient but the big changer was when
people started developing software that could handle data in more efficient way.

Today we have better warehouse management systems and revolutionary tools that
helps business operate more efficiently than ever before. They have functions that
help accomplish some tasks such as receiving and put away, but also takes care of
minor tasks such as shipping information, receipts, printings, notifications, all of
which can be done online and can be shared and accessed easily and instantly by
employees, regardless of geographical location or time.

2.4 RELEVANCE OF COMPUTER SYSTEMS IN DATA PROCESSING

In ND General Computers an intended buyer who called either to buy goods or
make enquires is being attended to by the sales assistant who tells him to register if
he/ she is a new customer and

10
if not the buyer will be told to order for the goods he needs and the details of such
an order will be taken, after which the customer pays and his been issued a receipt
on payment

The organization adopts full services system. Full services are a system or
technique whereby the sales assistants of the organization are attending to a buyer.
A successful buyer after paying is being issued a receipt by the cashier, the receipt
are always in pairs- original copy is given to the buyer the duplicate is retained for
accounting purposes. The organization is made up of four main department which
is headed by an accountant handles the sales records, payment, balancing of
account and other related tasks. The Sales department sees to the importation, and
sales of goods.

The warehousing department officer sees to insurance of receipt of stored

commodity. The merchandized department is in charge of local purchase of goods
from the local market when urgent need arises.
ND General Computers replenish their store by applying for two forms
 Direct supply from the manufacturer (importation)
 Inter branch transfer

2.4.1 Direct Supply From Manufacturer

The merchandized department gives output to them so that they can write their
quotation which after been approved the supplier will bring the goods to the
warehouse and an invoice is issued which is two copies, the original given to the
supplier and the duplicate attached to the LPO for the account department to act on
it.

2.5 STOCK MANAGEMENT SYSTEM

For inventories to be properly managed a system must be in place, note that the
way the system is been designed does not matter, either it consist of writing
inventory levels on a paper or either using the most sophisticated radio frequency
system. There are a whole lot of ways the system could be created to help the
situation, although the various types of inventory systems all have their advantages
and disadvantages. Going for the right one boils down to which system holds the
most value for the company (Rubin, 2007).

There are four methods adopted currently in stock management systems;

 Radio Frequency Identification (RFID)
 Manual Stock management system

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  Warehouse Management System
 Barcode Technology

2.5.1 Radio Frequency Identification (RFID)

RFID tags, or simply "tags", are small transponders that respond to queries from a
reader by wirelessly transmitting a serial number or similar identifier. They are
heavily used to track items in production environments and to label items in
supermarkets. They are usually thought of as an advanced barcode Rubin, K.
(2007).
However, their possible area of use is much larger. This presents a few new
applications that are
Possible using RFID technology such as locating lost items, tracking moving
objects, and others.

RFID tags are expected to proliferate into the billions over the next few years and
yet, they are simply treated the same way as barcodes without considering the
impact that this advanced technology has on privacy. It also presents possible
exploits of RFID systems and some proposed solutions as well. At its most simple,
a radio frequency identification (RFID) system consists of two components,
namely a tag (also called a transponder) and a reader (also called an interrogator).
The tag is designed to be small and cheap – perhaps the size of a credit card or
smaller whilst the reader is more expensive and larger typically around the size of
a laptop computer. The RFID tag contains a small amount of memory for holding
data, and whenever that tag comes into proximity.

RFID technology has a reading range of up to 40 feet using the other type
technology which is the passive and also using the active technology which
operates from the range of 300 feet, this helps to increase the accuracy of moving
inventories about in a warehouse (Hamlett, 2006). A real-world

RFID application will typically make use of many RFID tags, which are attached
to physical objects. When one of these objects comes into proximity with the RFID
reader, date from the associated tag can be read, this may be used to identify that
specific object or to provide information about it. Similarly, real applications of
RFID technology often make use of several RFID readers, so that the tagged
objects can be identified in different locations. Reader’s radio communication
signal. This means that the reader has to drive communication, but it makes the tag
much cheaper. It is of two types the active and the passive, the active RFID
functions better in an environment where security problem occurs while passive is
uses scanner for the sole purpose of monitoring stocks Sande, O.F. (2003).
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2.5.2 Manual Stock Management System
Even the smallest businesses been set up, need to implement some form of
inventory control system to keep accurate stock count, as well as for accounting
purposes. Business owners have a choice to make, either between using a
computerized or a manual inventory system. The manual system offers a wide
range of potential advantages such as disadvantages. A lot of companies that are
yet to be developed, especially businesses with few or little stock in possession
keep track of inventories manually as to avoid large cost of keeping tracks using
other methods which are not necessary, they basically use spreadsheet.
Spreadsheets are set up to calculate when certain amounts of stocks need to be
recorded. Before the start of a new week, the person in charge of the inventories
manually counts the products or stocks available and enters them on the
spreadsheet, this method is one of the earliest method, though it is said to be
tedious, more affordable to set up.

Note that if the appropriate spreadsheet formula is used, the owner can determine
the stock available and also know if they are to re-order. A manual system gives a
small business owner a greater sense of control. Instead of depending on a
computer to get the job done or to indicate when it is time to re-order, here the
owner manages it on his own, the need to access his goods regularly, such as
counting stock before placing order. This method helps the owner assess the
condition of his goods, reducing the chance of a customer receiving damaged or
bad goods.

Though it has its own disadvantages too, such as labor intensive, prone to errors,
etc. Sande, O.F.
(2013).

2.5.3 Warehouse Management System

A warehouse management system is a software used to manage operations in a
warehouse including inventory management, picking processes and auditing, it is
an important part of the supply chain, the primary goal of which is to track and
control the movement and storage of product of materials within a warehouse, and
process the associated inventory actions, including; receiving, adding, picking,
quality control, shipping, reporting and forecasting, with the addition of listing and
channel management, should the company be involved in ecommerce. It can be

13
defined as the legs at the end of the line that automates the store, traffic and
shipping management.

It is the management of storage of stocks or items and services rendered on the

product within the four walls of a warehouse (Sande, 2003).

2.5.4 Barcode Technology.

Barcodes manage inventory at the warehouse level as it facilitates movement of
inventory within the confines of a warehouse Sande, O.F. (2013). As far back as
1960s, barcodes were used in industrial work environments, some of the early
implementations of barcodes included the ability to identify rail road cars, and then
in 1970s, barcodes started appearing in grocery stores, to automate the process of
identifying grocery items, this consist of series of parallel vertical lines or bars,
used to assign a unique identification code to an item. A barcode combines several
sequences to create a unique set of numbers or characters that identifies the item
(Encarta, 2009) Barcodes are mainly used for businesses having large amount of
stocks. It helps keep a centralized record on a computer system that tracks
products, prices and stock levels. One can change the price as often as you like
without having to put new price tags on all your bottles or boxes, barcode
technology is so accurate, and efficient in managing stocks. The basic idea is that it
gives every item that you want to classify its own, unique number then simply
prints the number on the item so an electronic scanning device can read it Sande,
O.F. (2013).

2.6 STOCK MANAGEMENT CONTROL

Stock management control helps to minimize the value of stocks held by
merchants or business owners (i.e. conserve cash), it also ensure that the business
has the right stock at the right quantities to allow production to be fast and
efficient. Here are wide range of stock control systems available Capron H. L.
(2016).
 Re-order and maximum stock levels
 Economic order Quantity (“EOQ”)
 ABC system
 Just-in-time (JIT) systems
 Batch control
 First in, First out (FIFO)
 Subcontracting production processing.

2.6.1 Re-Order and Maximum Stock Levels

14
Maximum stock level is the most stock of a particular item that the business is able
or willing to hold at a giving point of time, it may also reflect storage capacity
(permanent and temporary), it also reflects management control over spending by
the purchasing department while for re-order level this helps track the order been
placed and the stock been delivered by the supplier, when stocks held of an item
falls into this category, that is when the stock is almost been sold out, it prompts an
alert for a new purchase order. Note: that it is important to avoid “stocks-outs”
(lost sales) and disruption to production, Avinash N Bhute and B B Meshram
(2013).

2.6.2 Economic Order Quantity (“EOQ”)

Economic order quantity is a standard formula used to arrive at a balance between
holding too much stock. It’s a quite complex calculation, so you may find it easier
to use stock control software, Avinash N Bhute and B B Meshram (2013).

2.6.3 The ABC System

This system helps to identify which stock item is to be controlled the most, it
creates an to, in this system stocks are divided into three categories of sales value,
the high value stocks get the most management attention for stock Avinash N
Bhute and B B Meshram (2013).

2.6.4 Just In Time Systems

JIT focuses on minimizing the holding costs of stock in a warehouse, the idea is
that stocks are brought into the production process at the time they are needed, it is
described as a system which effectively attempts to operate production with
minimal/zero buffer stocks, with JIT systems, production and purchasing are
closely linked to sales demand on a week to week basis. This system is said to be
very important in the production aspect as it aids the continuous flow of raw
materials into stock, when work in progress is completed, it goes straight to the
customer Jason Gilmore W, Beginning (2010).

2.6.5 Batch Control

Managing the production of goods in batches, you need to make sure that you have
the right number of components to cover your needs until the next batch. If your
needs are predictable, you may order a fixed quantity of stock every time you place
an order, or order at a fixed interval, let’s say every week or month. In effect,
you’re placing a standing order, so you need to keep the quantities and prices under
review Jason Gilmore W, Beginning (2010).

15
2.6.6 First In, First out (FIFO)
A system designed to ensure that perishable stock is used efficiently so that it does
not deteriorate.
Stock is identified by the date received and moves on through each stage of
production in strict order Jason Gilmore W, Beginning (2010).

2.7 BENEFITS OF STOCK MANAGEMENT

Stock management system is very important, especially in the day to day activities
which involve buying and selling. The reason for the automated management is to
provide accurate analysis of information needed, and help minimize the risk of
error. A good inventory system alerts the retailer, if there is need to re-order, when
the company runs almost out of stock. Stock management system ensures quality
control and proper management, so that the company does not run at loss, for
instance, if the wholesaler buys 1,000,000 bottles of perfume and 1000 bottles are
missing, counting it manually can be time consuming and may also result in error.

Here are some other benefits Sande, O.F. (2013):

 Stock management systems can help reduce the time to respond to changing
market demand of products and can help control excess stock
 Stock management system provide a means for business to effectively
manage or control their inventory
 Stock management system helps businesses to constantly analyses their
business processes such as sales and purchasing in order to make efficient
inventory decisions
 Can provide total insight on stock transactions
 Provides hands on knowledge on inventory which might lead to increased
sales and efficient customer services.

2.7.1 AUTOMATED INVENTORY CONTROL SYSTEM SOFTWARE

The automated inventory control system software is a computer based system for
tracking product levels, orders, sales and deliveries. It can also be used in the
manufacturing industry to create a work order, bill of materials and other
production related documents. Companies use inventory management software to
avoid product overstock and outages and also, as a tool for organizing inventory
data that was generally stored in hardcopy form. The software is made up of
components working together to create a cohesive inventory control system which
include Sande, O.F. (2013);
Asset tracking: This involves tracking products via its barcodes and other tracking
criteria such as serial number when they are in a warehouse or store.
16
  Order management: Once products reach a certain low level, a company’s
inventory control system can be programmed to tell managers to reorder
that product. This helps companies to avoid running out of products or tying
up too much capital in inventory.
 Service management: Companies that are primarily service oriented rather
than product oriented can use this software to track the cost of the materials
they use to provide services.

This way, they can attach prices to their services that reflect the total cost of
performing them.

2.8 BRIEF HISTORY OF ND GENERAL COMPUTERS NIG. LTD.

ND General Computers Nig. Ltd. is a business enterprise established in 2008 and is
into the sale and supply of Laptops, Desktop PCs, Printers, Computer Accessories
and other office and home appliances. They are situated in Suite A11 – A13, Emab
Plaza, Aminu Kano Crescent Wuse II, Abuja, with a branch office which is located
in Shop 1-024 and Shop 1-040, Area One Shopping Complex by Moshood Abiola
Road, Garki Abuja.

The company’s focus is to provide world class ICT business solutions to clients.
This includes software, hardware and accessories and solutions. The company have
in place a team of highly qualified dedicated personnel who are backed by leading
Associates.

The company is unique in the world of retailing, a computer shop with the personal
touch of your local retailer bent on bringing the best in electronics, computers and
more directly to individuals, homes, schools and offices.

17
2.8.1 ORGANIZATIONAL STRUCTURE

CEO

ADMINISTRATIVE ACCOUNTING SALES TECHNICAL

DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT

D
ACCOUNTANT SALES SYSTEM
OPERATIONS MANAGER ENGINEEER
MANAGER D
D D
D
SALES
STORE ATTENDANTS
MANAGER
D
D

SECRETARY

D
COMPUTER
OPERATORS

DRIVER

D
ND GENERAL COMPUTERS NIGERIA LTD. ORGANIZATIONAL
STRUCTURE

18
 CHAPTER THREE: SYSTEM ANALYSIS AND DESIGN

3.0 INTRODUCTION

Since the inception of the business, the stock record of goods

(both purchased and available) are been carried out manually.As a result of this, so

mechallenges such as; improper record keeping, difficulty in locating transactions,

unnecessary wastage of customer’s time etc. are been encountered frequently. For

this reason, developing a computerized stock management system will help in

proper record keeping, and also ease the job of the company’s staff.

3.1 ANALYSIS OF THE EXISTING SYSTEM

In this present manual stock management system, all activities such as; stock

taking of available goods, locating a particular item, etc. are been done manually.

Whenever a new stock arrives, records of all the items must be taken one after the

other, bit by bit, and this can lead to accuracy in record keeping, because it’s a

manual system that is been used and if someone visits the company and wants to

buy a laptop, the sales attendant will have to carefully search all through for that

laptop, until he finds the shelve where the laptop is supposed to be and at the end

of the day, after locating the shelve, he may not find the needed laptop (probably

all its kind has been sold out).

19
3.2 CONSTRAINT OF THE EXISTING SYSTEM

i. This manual system gives us little or no security for saving data and

some data may be lost due to carelessness in the side of the sales

attendants.

ii. Since records are done only on paper, the loss of a paper document

could be the end of that entire document; because it was not

electronically stored.

iii. Errors (human errors) can easily be made, during stock taking.

iv. Record keeping can be complex and tedious.

v. Records could be destroyed by rodents if proper care is not taken.

3.3 ADVANTAGES OF THE EXISTING SYSTEM

i. No computer knowledge is needed to work with the system.

ii. The cost of running the manual system is low, compared to the

computerized system.

iii. The manual system is free from hardware, software and system

breakdown, which the automated systems sometimes encounter.

iv. The manual system is very easy to understand.

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3.4 THE PROPOSED SYSTEM AND ITS OBJECTIVES

The proposed system is called the computerized stock management system. The

aim of the system is to automate the stock taking of all goods in the shop and also

to keep proper record of them and the detail of purchases. For now, based on the

available resources, the system will be streamlined to keep proper records of the

incoming and outgoing goods, their brands, configurations, product and serial

numbers, place of purchase, various cost price and customer details.

The objectives of the system are:

i. To ease documentation of all the goods available in the shop.

ii. To make it easier for sales attendants to locate available goods.

iii. To enhance accountability.

iv. To enforce security measures and avoid unauthorized access to

customer records.

3.5 ADVANTAGES AND DISADVANTAGES

ADVANTAGES

i. The proposed system brings about efficiency.

ii. It is easy to maintain.

iii. The system will make the job of the sales attendants easier, and this

will bring about an increase in productivity.

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 iv. Since authentication will be provided for the system, only the sales

attendants or authorized users can access the system.

DISADVANTAGES

i. Cost of impacting computer knowledge on the sales attendants

(training).

ii. Cost of equipment needed to run and maintain the system.

iii. Cost of electricity needed to power the computers.

3.6 DATA FLOW DIAGRAM OF THE MANUAL AND

COMPUTERIZED STOCK MANAGEMENT SYSTEM

The DFD Diagram for Stock Management System is a data flow diagram of

graphical representation and commonly used also for the visualization of structured

design data processing through an information system, it’s an important technique

for modeling process aspects with a system’s high-level detail by showing what

kinds of data will be/how to input and output from the system, where the data will

come from and go to by sequentially, and where the data result will be stored

through functional transformations. The system is shown as a single process that

provides data to the financial system. It both provides data to and gets data from

Manager, Supplier and Customer.

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3.7 DATA FLOW DIAGRAMS

Figure 3.7.1: Data Flow diagram of the manual system

Figure 3.7.2: Data Flow diagram of the computerized system

The figure above (Fig. 3.7.1) shows the complete stock management circle system,

the activities and the processes that the stock management system undergoes. We

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have five interconnected systems: which are the Customer, Financial System,

Manager, Supplier and the Stock Management System. In the Customer System an

Advertised product is purchased by the Customer, the customer’s data is manually

recorded at the books and an invoice is issued in respect to the goods purchased.

The Financial system records the transaction details and Cash Flows, the Manager

of the company Records the Sale Item, checks the stock level to avoid Shortage

and Overstock and issue an order if there is shortage of stock and the product

supplied is not what was ordered, he will then Reorder for more. The Supplier of

the product from the manufacturer checks the wholesaler’s order and Reorder and

makes the Shipment or delivery of goods. Each stage and activities in the figure

above takes manual record of the processes. The same thing is experienced in the

Fig 3.7.2 above, but the manual record taking in the former is electronically

handled in the new system called Computerized Stock Management System which

handles the New stock, Stock order, Stock update, Product or Item Search to check

availability and Stock Report.

3.8 INPUT DESIGN

In any organization, institution or any system of operation there is always an input

into the system which keeps a system going, if the input is wrong definitely the

output will be wrong. This design is meant to handle data about a particular

product or item in the shop.

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TABLE 3.8.1: TABLE FOR THE INPUT DESIGN TO ADD NEW

PRODUCT RECORD.

Field Name Data type Field Size

Serial Number Integer 15
Product Number Integer 10
Product Name Text 30
Supplier Number Integer 15
Supplier Name Text 40
Quantity Order Integer 20
Quantity Received Integer 20
Date Order Text 15
Date Received Text 15
Received By Text 30

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 TABLE 3.8.2: TABLE FOR THE INPUT DESIGN TO ADD TO THE

STOCK.

Field Name Data type Field Size

Supplier Number Integer 15
Name Text 35
Middle Name Text 20
Surname Text 20
Address Text 40
Contact Number Integer 15
Company Name Text 35
Company Address Text 35
Company Contact Text 30
Note Text 40

TABLE 3.8.3: TABLE FOR THE INPUT DESIGN TO ADD

SUPPLIER RECORD.

Field Name Data type Field Size

Product No. Integer 10
Product Name Text 30
Product Supplier Text 40
Category Text 30
Product Price Integer 20
Quantity Integer 20
Product Description Text 35

3.9 FEASIBILITY STUDY

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A feasibility study was carried out in order to ascertain the benefits of the present

system and that of the proposed system.

i. ORGANIZATIONAL FEASIBILITY

This level of feasibility focuses on “who can use it?” i.e., the system. The users of

this system are the stakeholders (management) and the key players (sales

attendants).The system will not be used by customers.

ii. TECHNICAL FEASIBILITY

As a computer science student, the technology to be used for the proposed system

is familiar to us. We will make use of Visual Basic 2017 programming language to

implement the project. It will be easy to modify, in case of a bug improvement in

the system. Visual Basic 2017will be used for the front end design, and Microsoft

access database 2016 for its back end. The system will be very easy to maintain.

iii. ECONOMIC FEASIBILITY

The estimated cost for the development of this project is summarized in the

table below:

ITEMS ESTIMATED COST IN NAIRA

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 SYSTEM SOFTWARE N25,000

DEVELOPMENT N50,000

SOFTWARE

HARDWARE N200,000

INSTALLATION

TRAINING N20,000

TOTAL N295,000

Figure 3.9.1: Shows the estimated cost of the proposed system

CHAPTER FOUR: IMPLEMENTATION, TESTING AND INTEGRATION

4.1 DEVELOPMENT TOOL

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In this project, the programming language employed in the implementation of this
system was Visual Basic 6.0, Because of its availability and flexibility and user
friendly.

4.2 SYSTEM REQUIREMENTS

These requirements for the implementation of this system are as follows;
 Hardware requirement
 Software requirement
 Functional requirement
 Non-functional requirement.

4.2.1 Hardware Requirements Specification:

It is required that for a proper operation of a newly designed system, the following
minimum hardware specification are recommended:
 PC with 300 megahertz.
 128 megabytes (MB) of RAM or higher recommendation
 1.5gigabytes (GB) of available hard disk space.
 Super VGA (800 X 600) or higher – resolution video adapter and monitor
 CD- ROM or DVD Drive
  Keyboard and Microsoft Mouse or compatible pointing device.

4.2.2 Software Requirement Specifications

The following are required for the development of SAMDAN software:
 Operating system (Windows XP/7/8.1/10)
 Web browsers
 VISUAL BASIC 6.0 for the front end (programming language)
 Microsoft Access for the back end (Database).

4.2.3 Functional Requirements

A. INPUT AND OUTPUT
 System should display transaction details
 System should provide facilities for change in address/name
 System should have a form to accept the customer details
 System should have a form to accept customer order.
 System should maintain details about placing order / dispatch of order

B. ERROR HANDLING
 System should report out of range values on numeric fields.

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  System should report invalid login errors
 System should report violation of rights authorization
 System should report data type mismatches on fields on the form.

4.2.4 Non – Functional Requirements

 Transactions should be processed on time
 There will be backup procedure to maintain records
 All user manuals should be provided in the necessary format.

4.3 IMPLEMENTATION
The new system is designed to be put into efficient use. Here, we will look into the
various technical aspects that influenced the successful implementation of this
system and determine the effective operation of the system. System
implementation follows the approval of the system proposals and its objectives,
thus it is to arrive at a satisfactory, implemented, completed, and function
evaluated automated system. It also embodies the preparation of resources
including equipment and personnel.

The supplier login password and identification is entered, he checks, tracks order,
dispatch order on customer and sends invoice after which he updates records. The
customer studies and makes a list of requirement, places the order, makes payment
and receives his invoice. However, this also includes the steps taken after the final
coding of the program.

4.3.1 LOGIN PAGE

This is the first form that appears when the software is run. The user is required to
provide the information (i.e. username and password) needed in order to access the
features of the software.

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 Fig 4.1:Login Form

HOME PAGE

This form is seen after username and password have been supplied or inputted
into the previous form. Then the features of the software can be accessed.

Fig. 4.2: Home Page

4.3.3 TRANSACTION PAGE

This form enables the user or admin to process transactions, find items and print
out receipts for goods bought.

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 Fig 4.3: Make Sales / Process Transactions.

4.3.4 ADD NEW CUSTOMER

This form allows you to add new customers details to the database, update it if
need be and also search for the name in case there is a special discount price a
customer receives.

Fig 4.4: Add New Customer

4.3.5 New Employee / User Registration

The essence of this form is to add new users or employees information so as to
know the amount of people working in the firm.

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 Fig 4.5:New User Registration.

4.3.6 Sales Report

At the end of the day the form produces records of items been sold, quantity, price
and the total amount.

Fig 4.3.6: Sales Report

4.4 Testing
Testing is the last stage in this software development and it presents an interesting
anomaly for me where I attempted to build software from an abstract concept to a
tangible product. During testing, I created series of test cases to discard
preconceived notions of the “correctness” of software just developed and
overcome a conflict of interest that occurs when errors are uncovered. As a
33
secondary benefit, testing demonstrates that the software functions appear to be
working according to specification, that behavioral and performance requirements
appear to have been met. In addition, data collected as testing is conducted provide
a good indication of software reliability and quality as a whole.

4.4.1 Unit Test

Each unit of the new system was tested (test run) individually alongside with the
old system in other to identify areas of further enhancement and development.

4.4.2 System Test

The entire system was as well tested (test run) in general alongside with the old
system in other to identify areas of further enhancement and development.

4.4.3 Testing Process

The first process here is the “level of testing”, the next process is the “test plain”
process. In this process, the engineer makes certain plans for the test will be carried
out. The next process that follows in the “test procedure” process.

The next process that follows again is the “test case specification” process. The
next process that follows is the “test execution” process. In this process, the tested
software is executed. Next process is the “test analysis” process. Here, the
executed software is analyzed to check for error.
If an error is noticed, the engineer goes back to the “test plan” process and follows
the steps again but if no error is noticed, the engineer goes to the next and final
process which is the “test report” process where he makes a report of all the
process of tests carried out to achieve the successful execution of the software.

4.4.4 Adequacy and coverage

The Stock Management System software can perform the following functions
 Give accurate information of daily transactions
 Print transaction slips
 Provide the user with adequate help by the user manual with the software

4.4.5 Efficiency and Effectiveness

 The system helps provide fast information of stock performance and give
better records

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4.5 PACKAGING (INTEGRATION)
The software will be designed using visual basic. After which will be complied and
packed for easy installation in any computer system and further use. The complied
software will be transferred in to a CD or a Flash drive.

35
 CHAPTER FIVE: SUMMARY, RECOMMENDATION AND
CONCLUSION

5.0 INTRODUCTION
This chapter states the summary of the entire project and also makes
recommendation(s) as to what ways and areas that it can be further developed. It
also gives the conclusion on the entire design effort that the project represents.

5.1 SUMMARY
This research work focuses on the use of computer system with reference to
computerized inventory control system of SAMDAN Nigeria Limited
The work covers the manual system of operation as regards to the problems
identified, stating the aims of the new system, stating the various specifications and
then implementing the programs.

The work was successfully developed using Visual Basic (VB) 6.0, Microsoft
Access and Font page was used, a user- friendly programming language, and the
package was tested and improved upon which yields an automated computerized
inventory control system.
The project work cannot be said to be perfect, but however, its benefits cannot be
overemphasized.

It has led to the improvement in the speed of processing operation, efficiency,

accuracy and improved storage of items.

5.2 LIMITATION
In this project, it is only restricted to the stock department of ND General
Computers store Nigeria .There are some limitations they encountered in the
updating of some finished product supply into store house and are delivered to the
customer who depends on demand and supply as a method of stock control the
recorder stock level and economics order quantity.

Also, the administrative department orders materials for the production of the
required product these materials could be gotten through local purchasing order. In
addition, the project cannot run on its own without human involvement
.

5.3 CONCLUSION
The objective of the project is to maintain an efficient and effective database
management package for ND GENERAL COMPUTERS NIGERIA LIMITED

36
which will in turn aid as a device or tools and effective decision making about
stocks in the organization. Also, the project is aligned at providing the
management of ND GENERAL COMPUTERS NIGERIA LIMITED an accurate
report of stocks in the organization. The project also has the capacity of informing
the organization if any goods as fallen below the recorder level, and goods that are
in store and also the quantity available in the store.

The project among other achievement has an efficient security facility, which
makes the records highly confidential, through the use of effective password
program. The project has been able to achieve the best of the limited resources. I
have been able to benefit greatly from the design of these systems, as it has aided
me to able to design any system of my own.

5.4 RECOMMENDATIONS
Based on the achieved objective of this project and the experiences gained during
its design and implementation, I wish to make the following recommendations for
future improvement. Students should be exposed to serious practical exercise
during the course of their studies. In this regard, the students should be made to
write at least a working program with veritable results before graduating. This
could be accomplished by providing more computers qualified lecturers in the
department. Companies and institutions should computerize their inventory system
for greater efficiency, neatness, and reliability. This will go a long way to save the
company of having over stock or under stock items in the store. Finally, the
students’ project should be closely supervised and monitored to achieve more
success.

37
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