CHAPTER 1.

INTRODUCTION

Automation of the simplest functions in today’s workplaces creates more efficient

business process. The ultimate goal of automation is cost-reduction in one or more
operational tasks, but the true impact may go beyond creating more efficient systems.

Automated time and attendance records are more accurate and more reliable than
manually generated data. Automated entries reduce the incidence of human error and
the possibility of tainted data, which may happen with manual entries, that are not
tamper proof. In addition, the automated method seamlessly translates raw data entries
into payroll categories to generate payroll reports that are updated to the required
period.
1.1BACKGROUND OF THE STUDY

Daily Time Record is very useful to every business process. It records the time in and
out of employees whether manually or automated. Using a manual system of daily time
record can be worrisome for others because it is prone to fraudulent acts committed by
employees. While thru automated, the chances of committing fraud is minimal because
of use of fingerprints, face recognition or some other types. This also includes the
computation of payroll using the system.

The SMART Kidz – School of Mind Achievers and Researchers of Tomorrow, Inc. is
private pre-school and elementary school located at #78 Santol St. Brgy. Comembo,
Makati City. The SMART Kidz was founded on year 2005. Since then, they have been
conducting their daily time record manually according to Mr. Orpilla. The hours rendered
by each employee is being checked manually. As a result of manual daily time record ,
the computation of payroll is being processed manually as well. The use of automated
system of daily time record and payroll will be much help to the school.

As a result, the chances of committing fraud will be minimal, the daily time record will be
automated and the processing of payroll will be done by the system.

1.2 STATEMENT OF THE PROBLEM

1.2.1 GENERAL PROBLEM

The school does not have an existing Automated Daily Time Record System. Therefore,
the data inputed in the record may be inaccurate because of fraud, the processing of
payroll will be time consuming when done manually and it can avoid issues regarding
employees who intentionally input wrong data.

1.2.1 SPECIFIC PROBLEM

 Manual processing of daily time record and payroll.

 Processing of payroll is time consuming
 Prone to fraudulent acts committed by employees.

1.3 OBJECTIVES

1.3.1 GENERAL OBJECTIVES

This study is intended to design and develop system(platform) for daily time record and
payroll computation.
1.3.2 SPECIFIC OBJECTIVES

 To minimize the manual processing of daily time record and payroll.

 To process the payroll using a system which will be done in a short time.
 To minimize the chances of employees committing fraud.

1.4 SCOPE AND LIMITATIONS

SCOPE

 DTR (Time entries)

 View and Print Time Logs of employees.
 Filed Manual time logs.
 Add new employee
 Set schedule/employees
 Compute tardiness/undertime

LIMITATIONS

 Does not support network topology.

 Can’t trace the location.

<School LOGO>

INFOTECH IAS - MAKATI BRANCH

In partial fulfillment of the requirements in Software Engineering and Project

Management

AUTOMATED DAILY TIME RECORD AND PAYROLL SYSTEM

FOR

SMART Kidz

By:
 Balala, Alona

Marquita, Fretzie Jay

Paguia, Sherlyn

Ms. Zyra May J. Progoso

Project adviser

October 2018

BUSINESS RULES

The SMART Kidz School of Mind Achiever Researchers of Tomorrow Inc. Is a private
school that operated from Monday-Friday except weekends and holidays. All employees
of the school have rules and regulation implemented during office hours. They used
manual daily time record machine for their time-in and time-out. The rules implementing
in their daily time card are all employees need to have a 20 minutes before for their
time-in and 20 minutes after for their time-out. This is strictly observed by the head of
the school. Beyond that there is a deduction per minute. Daily time record of time-in and
time-out of each employee is important for their salary and other benefits of the school.
BUSINESS PROCESS

The SMART Kidz have 25 employees. The school hours is from 8’oclock in the morning
up to 5’oclock in the afternoon. They used manual processing in their daily time card
and manual processing of payroll. The cut-off payroll is 10 and 25 of the month.they
have two weeks cycle every month.

In processing their daily time record, they used cards and bundy clock machine for time-
in and time-out.

In processing their payroll, all the hours rendered of each employee was computed. The
deduction of late and absences have been deducted and other benefits like SSS, Pag-
ibig, and Philhealth. Before it forwards in their payslip. The salary of each employee is
through ATM.

From the starting of hiring an employee, 1 year no leave credits given. They need to
take 2 years in service to have a leave credits. The school cycle is 10months starting
june-march of the year.