Abstract

This is the document for developing a Point of Sales System for TyrePro. It
consist of the background of the firm and problems having due to present system and
how we are going to overcome those matters through our proposed system. The
company has a problem in terms of manual recording of sales which is prone to
duplication or lack of record entry, paperwork related to calculating sales and managing
inventory that can be lost, manual computation of sales which is prone to miscalculation
resulting to inaccurate sales, recalculation which is equivalent to waste of time,
inaccurate inventory information which can lead to overstocking or understocking,
manual billing which is prone to miscalculation of total bill, wrong input of price, and
an additional paperwork to record. After gathering requirements, we have found that
TyrePro is using a manual file-based system for their processes. They are keeping huge
amount of records, receipt and inventory items. The project aims to build a fully
functional system in order to achieve the efficiency in handling sales record. The overall
mission of system development is to help the employee complete their task quickly.

Chapter I
Project Context

In the world of business, sales and inventory report has one of the biggest roles
in the field of business industry. Recording data from past to present will calculate every
statement and will help in monitoring the status of the business. Manual data recording
of sales and inventory data are now a thing of the past. Indeed, the world is now
inconceivable without computers. Billions of important data can now be stored and
handily retrieved because of the database technologies that exists today. Precious time
should be in properly manage in order to do all the things that the company or business
has. Monitoring and managing the sales and inventory is a hard task for the manager or
the owner.

As the world moves further and faster into a thriving technological age, so must
the way we conduct our business. The Point-Of-Sale (POS) has been created by IT
professionals to make the systems of business easy to manage. It calculates the sales
for the day, month and year. And, inventory systems programs now on the market lets
you track the usage, monitor changes in unit costs, calculate it when you need to reorder,
and analyze inventory levels in item-by-item basis. It can even control inventory right
at the cash register with point-of-sale (POS) systems. Point-Of-Sale System records
each sale when it happens, and the inventory records are updated automatically.
Growing technology has a limitless development, one of the popular IT Developers
companies who transformed Manual Point-Of-Sale recording into a more convenient
and easy way on recording the sales per day is International Business Management
(IBM) it is the best sample why do companies mostly trusted to help manage their
client’s business/ company.
 Chapter II
Background of the Study

Tyre-Pro (Diamond Star Auto Service Center) is a business concerned with

engine-related services that started on 1998. It is located at San Roque Sto. Tomas,
Batangas. It is also known as the provider of complete tire services not only on engine,
but also on fuel system, steering system, brake system, clutch system, radiator,
transmission etc. but Tyre-Pro (Diamond Star Auto Service Center) still lacks on
innovative technology. When making sales the employee looks for the product on their
stands then search their current product list to know its price, he/she will write down
the customer’s details on the receipt and then manually computes using a calculator
which is prone to miscalculation of total bill, wrong input of price and it takes about 5
minutes per customer. When new items or stock comes, the manager will just write it
down on his log book that he had received the quantity of the new items and notifies
the owner then put the items on the stands. They don’t have real time monitoring on
their current stocks they just rely on what is on their stands. It has no Point of Sale nor
an Inventory System and only relying on manual paper based system making it a perfect
example for the studies of the researchers.

The study was conceptualized after the developers realized the struggles of
the manual process done by the Cashier and the Manager of the firm. The function of
the system is to lessen the company’s problem which is the Manual recording of sales
that is prone to duplication or lack of record entry. The traditional way of summarizing
the daily and monthly sales takes a lot of time. The current way of gathering data may
be at risk and may not show an accurate result.

By knowing the circumstances that added the workload of the accountant,

the developers decided to develop a Point of Sales System. In this system, the manager
and the accountant are only liable to access and enter it. The authorized user must login
their account in order to proceed to the main function of the system. The functionality
of the system eliminates the process of having data redundancy. Also, the amount of
time consumed by the user may decrease.
 When it comes to infrastructure, Point of Sales System consists of three main
parts which are hardware and software and people requirement. Hardware includes all
the gadgets and devices, such as the PC and cash drawer. The system requires an Intel
or AMD processors of any version and requires a speed of 1.2 Ghz or above. The central
processing unit should be at least single core. The RAM should have 500mb as the
minimum requirement of the system. Also, keyboard and mouse of any kind may do. It
is also needed aan operating system supported Windows XP and later versions. While
the software includes programs and modules which are run on the PC interface.
Software requirements are the requirements needed by the system to run without errors
in a browser on a computer. These requirements are needed so that the system will be
executed without any bugs arising.

The researchers aim to develop a Point of Sale and Inventory System for Tyre-
Pro (Diamond Star Auto Service Center) that will automate the process of the said
branch (sales) and gives the admin or manager a reliable inventory storing of products
and stocks. The system will also be a computerized solution to the different problem
i.e. (unreliable records due to erroneous or unreadable handwriting and loss of records)
encountered because of its paper-based system.

The diagram below shows the organizational structure of TyrePro Firm.

 Chapter III
Definition of Terms

In order to have a better understanding on the terminologies to be used in the

study, the following terminologies were gathered and defined conceptually and
operationally by the proponents.

POS. Point of Sale used for making sales, displaying the products quantity and price.
It also acts as a cash register for payment management[1]. This term is used as the
system developed by the researchers.
 Chapter IV
Theoretical Reference and Framework

The different systems that have been researched and shared same
concepts and ideas to the developed system are presented in this chapter. The functions
of the system and how it helps to a certain institution are also discussed, along with the
elaboration with its similarities to the developed system.

Local Literature

Willyson Merchandising Computerized Sales and Inventory System

The study aims to develop a computerized sales and inventory system for
Willyson Merchandising for accurate and faster transactions such as purchasing of
products and inventory.

The only difference is that the proposed system will include the Point of Sale
(POS) system that uses barcode reader that makes marking down prices and recording
the markdown easy. The similarity of this system is that they make it faster for the
employee to transact with their loving customer and have an accurate result.

Pelican Bleu Bar and Restaurant Computer Sales and Inventory System with
Online Reservation

(Thesis-STI College Paranaque)

This study aims to develop a flexible and efficient computerized system that can
expand to provide a smooth flow of transaction in case there will be changes to the
overall flow of business

The proponents adopted the local literature because study is almost the same.
The Computerized Sales and Inventory System that the proponents will develop for
efficient way in processing the transaction; such as monitoring of stocks and generating
of report.

SDCC’s Pharmacy and Appliance Financing Computerized Sales and Inventory

System
 This study aims to develop a Computerized Sales and Inventory for SDCC’s to
minimize time and effort in monitoring and recording transactions also in generating
report in a much efficient way.

This study aims to develop a Computerized Sales and Inventory SSystem that
will help the company minimize time, effort and manage to increase the profit as the
main goal of the proponents of SDCC. This study is somewhat identical to the goal of
making the Point of Sales System of TyrePro.

Foreign Literature

Point of Sales System for Inn0waiter

The Point of Sales System for Inn0waiter restaurant manages their inventory,
keeps record of sales, tracks accounts and manages menus and recipes.

The Computerized Sales and Inventory System with the same proponent of
TyrePro’s Point of Sales system helps the company to manage their inventory, keep
record of sales and be more proficient in customer relationship management.

Cash Inventory System for ALECASH

ALECASH provides an automatic way for opening and closing the cash
inventory. It loads the basic, client and account information at the opening. It supports
verification of cash inventory and transactions when closing.

The said inventory system is the same with the Point of Sales System of
TyrePro. It enables tracking and documenting transaction. It can be integrated, further
developed and customized.

Point of Sales System for China Restaurant Market

The POS system for China Restaurant is designed to be user oriented so that it
can support the business seamlessly. Since restaurants’ standard of operations, business
formats, models and cultural backgrounds vary according to different regions of the
world, it is necessary for the POS system to support service localization. The Point of
Sales System is no longer a simple tool but a new competitive edge for restaurant
operation of the said company.
 The Point of Sales System of China Restaurant is also the same with the system
of TyrePro that helps the company to be competitive using the Point of Sales System to
other company that already uses a system to their businesses.

Related Studies

To develop The Point of Sales for Tyre-Pro (Diamond Star Auto Service
Center), the developers had to research comprehensive readings to generate some ideas
and concept about point of sales system that helped them evolved their own concept.
The following are systems which contribute significantly in the development of the
developed system.

As defined by Carolina Barcode Inc., a Point-of-Sale system is a computer

software and hardware networked together to track sales and inventory as they occur.
Point-of-Sale systems will solve a multitude of problems in your business. It is one of
the focal points of any retail or hospitality business in the cash register. The ability to
process transactions and tender cash are essential to the efficient operation of the
enterprise. If you have a lot of cash transactions, replacing the cash registers with a
Point-Of-Sale (POS) system save you money (2013).

In addition to this, Beltran et al. [2] developed a Sales Monitoring System

issued 1995, the accelerated work structure of the company proper monitoring is
essential in order to keep track of the company’s sales activities. Her system aims to
come up with an efficient, and accurate mechanized system of preparing invoices that
will keep track of the daily transaction and generate reports. Important information will
be provided by this study in order to prove that the computerization of the company’s
operation and achieve a more reliable and efficient means of monitoring day to day
activities.

The researchers propose system that has the functionality of a POS and the
ability to manage your stocks by an Inventory System.

According to the U.S. Small Business Administration, “Inventory refers to

stocks of anything necessary to do business” (U.S. Small Business Administration,
2010) The U.S. Small Business Administration publication describes what constitutes
successful inventory management balancing cost versus benefits of inventory,
including Maintaining a wide assortment without spreading the rapidly moving items
too thin, Increasing inventory turnover without sacrificing service, Keeping stock low
without sacrificing performance, Obtaining lower prices by making volume purchases,
Maintaining an adequate inventory without an excess of obsolete items.

The researchers propose a system that will create accurate and informative
sales and inventory reports pointing out to the products that needs stock and the
products that needs to lower stocks.

According to Gemma Navarro (2012) Computer is general purpose device

which can be programmed to carry out a finite set arithmetic or local operation.
Computer has a big rule in our nation today because of our technology. Wherever you
go computer still exist, especially in business it makes the procedure easy and secure
by programming the manual system into a computerizing system. The rule of
technology in our life today has a big impact.

The researchers propose a system that has features and functions based on
their current manual based system.

In this study conducted by Ariel Magat (2006), he stated that the Inventory
System of the vital to any institution, agency, or department. The proper safekeeping,
processing and disposal of records play important roles in the efficient, effective and
smooth operation that eventually would lead to the success attainment of the goal and
objectives of institution, agency and department concerned.

The researchers propose a secure and reliable inventory system storing

consistent data and only showing it to the people who has access to it.

In the study from Averion, Gaela, and Libo (2009) it stated that inventory
system help to minimize the difficulty of the manager in processing inventory because
physical counting products, stocks and computing inventory summary will be the
system job. It will monitor the availability of products, items to prevent under stocking,
over stocking and running out of stocks. The system will also simplify the transaction
between dealer and supplier relationship because of the updated supplier information
and price list of items will correspond to collaboration with other supplier.”

The researchers propose a system similar to the article that automatically

counts the current inventory when needed faster and efficient.
 According to the thesis of Carlo Magno (2007) “There was a ground swell to
move from paper signature and documents because the task of record management was
huge. We had file cabinets full of backup materials. By converting from manual
process, we would be able to eliminate a lot of paper. We could go further with the
automation of manual process and remove manual paperwork if people trusted the
technology.

As stated by Mike Toland (2011) “We need a better tracking system than
excel spreadsheets and paper”. Paper is too cumbersome and also too limiting, you’ll
never know how to specify all the information that you need.

The researchers propose a system that can store data securely by the use of
a local database on the locales computer.

A study conducted by Mr. Gragasin (2010) et,al. Entitled “A customized

Point of Sale and Inventory System for Anespee Enterprise Hardware Carangian”
concluded that the implementation of the Developed system increases the business
efficiency and effectively in terms of every transaction that they have. Managing the
records such as employee, customer, suppliers and transaction is faster and easier than
using the manual paper based system.

The researchers propose a customized system that would likely be adapted

by the locale to speed up its processes and increase the efficiency of the business.

According to J. De Leon and M. Ferrer (2009) Under the Koread Enterprise

Sales and Inventory System, the researchers came up with a computerized sales and
inventory system. The proponents used database to easy access of files and for easier
and faster processing of the selling and inventory transaction. The program was
designated to generate reports such as monthly reports, inventory reports, sales invoice
and list of items.

The researchers propose a system that can store data securely by the use of
a local database on the locales computer.

Based on the research entitled “Computerized Sales and Inventory system

for Ronmon Trading” (de Alday, Espino, Ragudo)2010, the replacement of the manual
system with the proposed system provided more efficient and accurate processing of
transaction. The said system is much reliable, eliminated errors and inaccurate
information, and provided valuable reports with integrity.

The researchers propose a system that generates report that are manageable
trough fast searching of records of the proposed system.
 Chapter V
Understanding the Current IT/IS State

TyrePro is a competitive business that exercise manual system in their

transactions such as selling products, updating the stocks and providing sales report.
Nowadays, most of the business depends on the fast phased changing technologies
being applied in the business. This technology helps business to run smoothly and able
to make the work easier and more accurate. Having this technology, the company
spends less time in doing such work and can able to do more jobs in the business.
TyrePro lacks of infrastructure, there is an internet connection but the number of
computer
 Chapter VI
Proposed IT/IS Framework
 Chapter VII
Conclusions and Recommendations
Chapter VIII
Bibliography