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Name

: Alex Ellis

School

: Oberlin High

Territory

: Jamaica

Registration #

: 100086

Teacher

: Mr. Stanbury

Centre #

: 100086

Date

: April 2011

CONTENT

PAGE

Acknowledgement

Problem Definition

4-5

Schedule of Activities

Ghant Chart

Analysis of the problem

8 - 10

Identification of solutions

11

Evaluation of Solution

12 - 14

Selection of Solution

15

Justification of Solution

16 - 18

Appendices

19 - 22

The researcher would like to thank God almighty for giving him the health and strength he need to complete
this Information Technology School Based Assessment, so as to meet the requirements of the Caribbean Advanced
Proficiency Examination syllabus. Also the researcher would like to extend his gratitude to Mr. Stanbury for giving
him this assignment and guiding him along the correct path.
The researcher would like to say big thanks to his mother who encouraged him along the ways as well his
classmates who assisted him.
The researcher would also like to thank his fellow classmate for their assistant they gave to him during the
course of this assessment.

Richwal Trading Company located in the Buff Bay community in Portland has been in operation since 1984.
The company buys and sells lubricants, vehicle accessories and other items. The company has an issue over the years
of operation with its warehouse. The warehouse of the company is holding area for inventories that are not displayed
to the public. The issue the company faces with its warehouse is the continuous lost of inventories, without anyone
able to give an account for the missing inventory or inventories. This has resulted in the company loosing thousands
of dollars each year.
This problem was started in 1990 when the company started purchasing a large amount of stock so as to
obtain discounts on purchases from its suppliers. The problem has grown over the years since its inauguration in
1990 to a large scale because the company sales has increase due to an increase in population and the lack of a good
competitor to take a share of the market. This issue as grown although there have been several changes in staff
members because it is evident that there is a loop hole to the company operations.
The problem with the warehouse affects both owners at workers of the company and also the government of
the country. The owners of the company is more affected by this problem because the company would have to borne
a higher cost of goods sold which will reduces the company gross profit. A reduction in gross profit will see owners
receiving a smaller amount of net profit which is added to their capital. Workers of the company are affected
emotional on a diminutive scale because its not all the time they are called in and question about a missing
inventory. When they are called they can be interrogated in an ill mannered way, which makes them feel disparage at
times. The government an external body is affected without their knowledge. The government which collects taxes
on a percentage of profit could have received higher revenue from collection of taxes if the company profits where
higher.
The problem which is being investigated can be solved with the use of information technology.

DURATIO
N

PREDECESSOR

TASK
A

Identification of Problem

NONE

TASK
B

Construct of Interview
Questions

TASK
C

Construct of Questionnaire
Questions

TASK
D

Carry out Observation

TASK
E

Report On Interview

TASK
F

Report on Questionnaire

TASK
G

Carry Out Background Research

TASK
H

Report on Background Research

TASK I

Analyze Observation

TASK J

Identification of Possible
Solutions

TASK
K

Evaluation of Possible Solutions

TASK
L

Selection of most Feasible


Solution

TASK
M

Justification of most Feasible


Solution

10

TASK
N

Organization of Project

Indentification of Problem
Construct of Interview Questions
Construct of Questionnaire Questions
Carry out Observation
Report On Interview
Report on Questionnaire
Carry Out Background Research
Report on Background Research
Analyse Observation
Indentification of Possible Solutions
Evaluation of Possible Solutions
Selection of most Feasible Solution
Justification of most Feasible Solution
Organization of Project

In order for the researcher to analyze the problem that Richwal Trading Company faces several facts finding
techniques would have to be used to gather data on the problem to find out the possible cause or causes of the
problem. The fact finding techniques that will be used consist of an interview with the companys manager, an
observation at the company for one week, a questionnaire that will issued to seven workers and a background
research. These techniques are expected to give causes of the problem that exist at the company.
An interview is a conversation between two people the interviewer and the interviewee, where questions
are asked by the interviewer to obtain information from the interviewee. Interviews allow for more interaction with
the persons involve in the problem which will result in better a feedback been given and more clear answers.
However interviews are time consuming. An interview with the managing director of the company about the problem
the company warehouse faces reveals that all workers at the company are granted access to the company warehouse.
The managing director also states that currently there is no worker assigned to the warehouse to monitor the inflows
and outflows from the warehouse, and that there are not any documentation of the items kept in the warehouse.
A background research was done on problems relating to the one currently being investigated. A background
research refers to accessing the collection of previously published and unpublished information about a site, region,
or a particular topic of interest. It allows for understanding of a problem or issue, but also can be out dated at times.
The background research showed that the cause of such problems is due to the lack of control systems which would
include; adequate documentation, segregation of duties, safeguarding and proper authorization. A control system
with the features listed above is likely to be efficient enough to give account for inventory in a company. The
research also indicates that security cameras are excellent means of monitor inventory, since they are able to record
all the activity that the camera covers.
An observation at the company warehouse was carried out for one week to gather more data on the problem
at hand. An observation as defined by the oxford dictionary is the act of observing or watching of people, animals or

things. The company presently employs a total of seventeen (17) workers. During the week of observation all
seventeen members of staff entered the warehouse for various reasons without any authorization. Figure 2 in the
appendices shows the amount of workers that enters the warehouse during the week of observation. On day six of the
observation all workers entered the warehouse this was due to the amount of business activity proceeding, on a day
like this at the company it is unable to say who remove what from the warehouse. The observation also highlighted
that there is no individual that is assigned to the warehouse to manage the daily operation of the warehouse. The
observation also disclosed that there were no alarm system or security cameras installed inside or outside of the
warehouse, in case of a burglary so as to give evidence or summoned the police. The observation also divulged that
the keys to the company warehouse were not monitored as well.
A questionnaire consisting of six open and close ending questions were issued to seven workers at the
company, they were fully completed and returned days after issue. A questionnaire is a written set of questions
answered by a number of people to provide information for a survey. A sample of the questionnaire that is not
completed can be seen in figure 3 in the appendices. The questionnaire showed that eighty six percent of the workers
access the warehouse on a daily basis while the remaining fourteen access the warehouse but not on a daily basis. All
the workers indicated that they dont need any permission or reason to gain access to the warehouse, all is required of
them is to fetch the key and help source whatever they want for the daily operation of the business. Workers of the
organization are of the view that senior management and owners doesnt want to invest in the companys security but
are more interested in increase of their fringe benefits and allowances. Workers went on further to say that the
company can resolve this issue in no time because it has being growing over the years in size and capital employed.
Workers at the company would like for the problem to be resolve as quick as possible because it can have a negative
impact on them; where they are being accused at times by other workers.
From the fact finding techniques used by the researcher to analyze the problem, it can be concluded that the
cause of the problem that the company faces is due to improper documentation, no authoritative control over the
warehouse and the lack of safeguarding. It can also be concluded that company does not spend on security.

The researcher after reviewing and analyzing the problem by the use of four fact finding techniques came up
with two possible solutions for the companys problem. These solutions are namely:
Installation of security cameras and
Creation of a database management system to manage inventory.

In addition to the two possible solutions an alarm system would be installed no matter what solution is chosen. It
is said installation of both solution would make a very efficient internal control system but would be too expense
presently so an evaluation of the solutions would be done before choosing the most feasible solution.

INSTALLATION OF SECURIY CAMERAS


The installation of security cameras would an excellent be a solution for solving the problem the company
faces because it posses the necessary criteria to get the problem solved. Reason been security cameras will have a
record of all activities that takes place in the warehouse. Security cameras will also reduce theft since it will be drive
fear into individuals who indulge in these activities.
The installation of the security cameras will require the following: six security cameras, a television, thirteen
yards of cable, a desk for the television, a DVD player and a canesta of DVDs for start of the project. The Personnel
would be hired to watch the cameras on a daily basis during the opening hours of the company. The cameras would
be installed by a current member of staff who will be paid four thousand dollars ($4 000.00). The company is
expected to borne an additional six hundred and fifty three dollars four cents ($653.04) to its electricity bill if the
cameras where to be installed each month. The total start up cost that the company will disburse would be three
hundred and twelve thousand four hundred and twenty dollars ($312 420.00) and two hundred and ninety eight
thousand eight hundred and thirty six dollars ($298 836.00) each year after.
How will this solution work? The solution would work basically by making sure there is full productivity and
efficiency in the process. The six cameras that would be installed would cover the entire area of the warehouse at
once. All the data that is gathered by the security cameras would be recorded on a DVD. There wouldnt be an issue
of time being lost when a disc change is in process, because the DVD player that would be used for recording is a
three disc player. Any time that is lost in recording while the personnel is at work, he or she would be fine based on
the amount of time that is lost. The personnel will be responsible for proper storage of the DVDs in case they are
needed for future reference. The personnel which will be hired will be from another parish and will work in isolation
from the other workers. This will allow for no communication between the personnel and the other members of staff.

CREATION OF A DATABASE MANAGEMENT SYSTEM


The database management system which will administer the company inventory will necessitate a desktop
computer, database management software, an ethernet cable, a computer desk, personnel with the ability to use the
computer as well as the software, and other basic software such as Microsoft Office Word. This solution will have a
startup cost of two hundred and sixty three thousand and thirty dollars ($263 030.00) and a yearly cost of three
hundred and sixteen thousand nine hundred and three dollars ($316 903.00).
The personnel would be responsible for inflows and outflows from the warehouse. The database management
software that would be used would be built specifically for the company purposes. Hence the software would be
customized. The software will allow the user to input inventories and the outflow of inventories. The system would
be able to give the value of closing and opening inventories at any given point for the warehouse. The personnel will
be responsible for the maintenance of the warehouse and this will cut a yearly cost of twenty four thousand dollars
($24 000) which paid for warehouse upkeep.
The inventories that will be received and stored in the warehouse the personnel is responsible to have a copy
of the invoices that goes to the purchasing department and a stock requisition card for the inventories leaving the
warehouse so has to have a hardcopy and signature attached to it for verification. The personnel hired have to liaison
with the purchasing and sales department in the company. This can create an ambiguity in solving the current
problem since the parties over time can form an alliance and create the problem all over again.
A solution like this if implemented can be linked to the company point of sale system in the future through a
network, if the company size remains the same. However if the company is to expand, the warehouse can operate
like a supplier to the company where there would be complete control operations and no loose ends for the creation
of a previous problem.

The problem highlighted above the most feasible solution would be to implement security cameras. Security
cameras if installed will be easily operated after installation all is required is to watch a television and to load DVDs
when needed, therefore there is not much technicality in operating the cameras and other equipments. In the long
term security cameras would be more economical since the cost of keeping it each year is cheaper than keeping a
database management system, however the implementation cost is more expensive than implementing a database
management system. The solution is not involved in data communication and networking because the security
cameras work in seclusion from the rest of the company operations. In Jamaica where the company is domicile it is
legal to install security cameras without informing anyone about them. Therefore it would be legal if the company is
to install security cameras without facing any legal formalities. The cameras and television is expected to have a life
span of twenty five years in the company and is also expected to be service only six times in their life span.
The operational, technical, economical and legal aspects surrounding the solution dictate that this is the most
feasible solution for the problem that is mention in this research.

The solution which was given in the above section can be justified by weighing up the other possible solution
that was indentified earlier on. To justify the solution the criterion that was used to evaluate the solutions identified
would be used, as well as other criterion that werent used in evaluation the of solutions. These criterions consist of;
cost, personnel required, software required, the efficiency of the solution and the impact it has on the environment.
The security cameras installation will have an initial cost of three hundred and twelve thousand four hundred
and twenty dollars ($312 420.00) which is more expensive than installing a database management system which has
an initial value of two hundred and sixty three thousand and thirty dollars ($263 030.00). Although the security
cameras installation are expensive in the short run of the business, however they will work out cheaper in the long
run that is any time after three years of installation. This is as a result of the cost that is associated with maintaining
the each system. As depicted in figure four in the appendices where it shows the total cost for each year, after year
one the total cost of the security cameras installation is six hundred and six thousand two hundred and fifty six
dollars ($606 256.00) and five hundred and seventy nine thousand nine hundred and thirty three dollars ($579
933.00) for database management systems, nine hundred thousand and ninety two dollars ($900 092.00) for cameras
and eight hundred and ninety six thousand eight hundred and thirty six dollars ($896 836.00) for database
management system in year two, but as year three is completed there is a switch in the higher total cost from security
cameras to database management systems, where the security cameras total cost are one million one hundred and
ninety three thousand nine hundred and twenty eight dollars ($1 193 928.00) and database management system is
one million two hundred and thirteen thousand seven hundred and thirty nine dollars ($1 213 739.00). It can be
clearly shown that if the company installs the security cameras it would be more economical than implementing a
database management system in the long run.
The solutions that were identified a personnel is required to monitor it. The database management system
would require a personnel with a certain amount of information technology skills, while for the solution selected all

is required of the personnel is the ability to read and write. Since the personnel for the database management system
will require special skills the salary package will have to be higher than regular personnel what is required to watch a
television. It can be stated that the personnel that is required for the security cameras solution would be much easier
to recruit and maintain than an information technology personnel.
A database management system require a database software to manage the files that would be stored, and the
software that will be used is a custom software and getting a specialized software can take time and some level of
difficulty in getting the software updated. If the software is to be updated it would require access to the internet.
Accessing the internet can allow hackers to gain access to the system and opening the gateway form virus and
malwares. However security cameras do not require any software, therefore it does not have to go through all the
problems that were just being highlighted.
Efficiency is a factor to consider when making a decision. In solving the problem on hand the most efficient
solution is the security cameras because it does not allow for any ambiguity in its process while the database
management system allow for a small amount since workers are able to communicate with the person that is in
charge of the system.
Another criterion would be the impact the solution has on the environment. Both solutions are tied equally on
this issue because they both does not affect the external environment no more than the other.

INTERVIEW QUESTIONS
1. What is the problem that the company faces with its warehouse?
2. How long has this problem being in existence?
3. What do you think are the causes of this problem?
4. Who are the persons who are granted access to the warehouse?
5. Is there any worker with the responsibility of monitor the
warehouse?
6. How this problem does affect the organization?
7. Can the company afford to put a system in place to resolve this
problem?
8. What kind of system would the company like to resolve this
problem?

FIGURE 1

18
16
14
12
10
8

ENTERED

DID NOT ENTERED

4
2
0

FIGURE 2

QUESTIONNAIRE
1) Do you access the warehouse on a daily basis?
Yes
No
2) Do you need permission to access the warehouse?
Yes
No
3) What is your view on the problem that company faces with the warehouse?
______________________________________________________________________
______________________________________________________________________
__
4) How do you think the company can resolve this issue?
______________________________________________________________________
______________________________________________________________________
__
5) Does this problem affect you as a worker?
FIGURE 3
6) If yes, how does this problem affects you?

Yes

No

______________________________________________________________________
_
______________________________________________________________________
_

Uses the Warehouse Daily


Not Daily; 14%

Daily Acces; 86%

FIGURE 4
2000000
1800000
1600000
1400000
1200000
1000000

DATABASE MANAGEMENT SYSTEM

SECURITY CAMERAS

800000
600000
400000
200000
0
YEAR 0

FIGURE 5

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5