SYSTEM INVESTIGATION I

(PURCHASING SYSTEM)

Project Manager: Section: 2M1

Group No. : 8
Domingo, Samantha Nicole Company Name: Queen B Prints
Contact Person: Hannell Bagarino
System Analysts: Contact No. : 09178098024

1. Bagarino, Jullianne Marie

2. Cipriano, Francis Ron
3. Feliciano, Juan Carlos
4. Legaspi, Juan Miguel
5. Tateishi, Tsutomu

EXECUTIVE SUMMARY:

The system analysts chose to conduct an investigation regarding the purchasing

system of the chosen company, Queen B Prints. The company operates since year
2012. Queen B Prints is a small business formed and owned by a single owner that
provides printing services for shirts, pillowcases, wallets and alike. It also provides
made-to-order products according to customers specifications for their own
personal or business use. Queen B focuses on producing quality products at
affordable prices, and to establish long-term relationships with customers.

GOALS AND OBJECTIVES:

The study concerning the purchasing system of Queen B Prints was conducted to
attain the following goals and objectives:

1. To provide easier and more convenient tracking of expenses.

2. To efficiently allocate of budget to needed resources.
3. To monitor the actual sales result in a faster manner based on purchases.
4. To easily address issues and concerns that may arise during operations related to
purchasing system.
5. To eliminate problems related to lack of employees assigned in the specific
system by upgrading to semi-computerized system.
6. To determine the problem in the system and to find solution regarding it.

SYSTEM PROBLEMS:

Based on the interview that took place last February 13, 2017, the following
problems can be seen in the purchasing system of Queen B- services.
In some cases, there is a difficulty in the allocation of the portion of the budget due
to the manual tracking of purchases to the needed resource, and therefore results in
a greater amount of expenses. Also, the purchases are only recorded manually by
the purchasing clerk, or in the case of the company, the purchasing clerk is also the
owner. Knowing that the purchases of the business are only tracked manually,
budget-related problems arise because the business is not able to manage and
allocate the specific amount of budget to the certain resource it needs to buy. The
actual sales result is also affected because of the increase in the amount of expenses
disbursed by the business due to lack of tracking of acquisitions and expenditures.
Lack of employees handling the system is also a problem in the purchasing aspect of
the business because the owner plays an all-around role in the business. Overall, the
problem in the purchasing system was focused mainly because of the manual
tracking of procurements of the industry.
 USE CASE DIAGRAM:

PURCHASING SYSTEM

PURCHASE RESOURCES
FROM SUPPLIERS

MONITOR ACQUISITIONS
AND EXPENDITURES OWNER/
PURCHASING
CLERK

PLACE PRINTING MANAGE PRINT

ORDERS JOBS

PRINT
PAY FOR ORDERS REPORT INVENTORY SERVER/EMPLOYEE
CLIENT

PROCESS ORDERS

QUEEN B PRINTS
FEASIBILITY:

We propose to change the system from manual to semi-computerized to provide

efficiency not just to the company but also to its customers. Microsoft 365 is a cloud-
based application. It includes Microsoft Excel Spreadsheet, which will be the
proposed application to be used by the company. Converting from a manual to semi-
computerized system will greatly affect the purchasing power of the company by
allocating the budget to a specific resource needed. The following are the
determinants to classify if the proposed system is viable:

a. Technical:
The proposed solution to the system problems is to convert from a completely
manual to semi-computerized system. To do so, the company needs to obtain a
desktop. The PC needed does not have to be very expensive but it requires a great
amount of space or GB to store all of the data needed by the company. Microsoft 365
is also needed to be installed in the PC.

Microsoft 365 is the brand name Microsoft uses for a group of software and services
subscriptions, which together provide productivity software and related services to
subscribers. The service runs on both MacOs and Windows but the chosen software
of the company is Windows because it offers a wide array of capabilities needed in
the business. Although the targeted subscribers of Microsoft 365 are the corporate
businesses, even small businesses like Queen B Printing could use it. There are a
wide array of applications that can be used by the business to monitor its day to day
acquisitions and expenditures but Microsoft 365 is the most suitable for its
affordable and user-friendly interface.

b. Legal:
It is assumed that all software including the MS Office 365, which will be used to
monitor all of the purchases and expenses of the company will be purchased legally.
The license used to obtain the Microsoft Office 365 is quite costly but purchasing the
legal ones will be a one-time expense for the company. The cloud based version of
the Microsoft Excel will only be available in the Microsoft Office 365.

c. Operational:
The following intended beneficiaries of our proposal to upgrade the manual system
of the business to semi-computerized are first, the owner. The owner plays an all-
around role in the business because she is also the purchasing clerk. She is the one
who purchases goods from different suppliers depending on what resource is
needed. The budget that will be allocated might be a costly but it will only be a one-
time expense for the business.

Based on the answer of the interviewee, Hannell Bagarino, they are amenable to the
solution suggested by the system analysts since the proposed solution to the system
problems will surely benefit not just the owner but the employees and the company
as whole, too. Using a semi-computerized system and Microsoft Office 365 (Excel),
the purchasing clerk will be able to easily track and list down all daily expenditures
and acquisitions of the company. Since the Microsoft Office 365 is a premium
application of the Microsoft Office that enables the users to access the account
anytime, anywhere and the data is automatically saved to it. To sum it up, the
intended beneficiaries is the owner, which also plays the role as a purchasing clerk,
and the auditor.

d. Schedule:
Upon analyzing the implementation of the proposal to upgrade the system in use by
the company, the following are the breakdown of the number of days/months
allocated to the specific stage:

1. Investigation Stage: 10 days is allocated for the investigation stage.

2. Analysis Stage: 12 days is allocated for briefly scrutinizing and analyzing the
proposed system
3. Design Stage: 15 days is allocated for designing and developing the approved
concept design.
4. Implementation stage: 10 days is allocated for implementing the proposed
technology that will be used by the company.
5.Maintenance and review stage: 30 days is allocated for the maintenance and
review stage to compare and contrast this months and last months performance.

The estimated number of days/months that the business will implement the
proposed system is about 2 months and 17 days, almost 3 months.

COST:

Microsoft 365 is the premium counterpart of MS Office. Subscribing to premium

lets the users save their data to a cloud-based system so that they can access their
data anytime, anywhere. The input will automatically be saved and will be secured
throughout the system. It is available in both Windows or MacOS, but the company
chose Windows over the latter.

Estimated Development Costs

No. Expenses Estimated
Costs
1 Assembled Desktop Php.35,000
(*inclusive of CPU, monitor, keyboard, mouse etc.)
1 Microsoft Office 365 Php.2,599
Total Php.37,599
Projected Annual Operating Costs
No. Expenses Estimated
Costs
 1 Yearly subscription for Microsoft Office 365 Php.2,599
(Php.2,599/year)
Total Php.2,599
BENEFITS:

Upgrading from a manual to a semi-computerized system will bring a great benefit

not only to the business as a whole but also to the employees managing the system
and the owner itself. Microsoft Office 365 is also cloud based where in all of the
inputs and datas saved from one computer can be accessed through log in to
monitor the purchase of resources and materials needed in the business day-to-day
operation. It would provide convenience to the owner and it will also minimize the
cost of hiring an employee to track down all the acquisitions of the business. The
datas will also be more accurate because it will automatically add all of the outlays
of the business and therefore, it would be easier to oversee.

RECOMMENDATION:

Based on the study conducted, a semi-computerized system is highly viable and

therefore, it is recommended to be implemented. Microsoft 365 using Windows is
recommended for the company. An improvement to the current system can be
apparent as it brings convenience not only to the purchasing personnel but also to
the whole company itself. It is recommended that we proceed to the next stage.