AUTOMATED INVENTORY MANAGEMENT SYSTEM
Abstract:
The
main purpose is to provide documentation which describes the overall
architecture of inventory management system and automation of inventory process, inventory process is provided with facilities to handle
receipts, transfers, returns, sales and issues of stock with full stock
take and control over the quantity and value of stock on hand.
|
Table of
Contents
Article I. Chapter 1
VISION
Integration among different functional areas to ensure proper communication, productivity, efficiency and control cost according to organization rules.
Section 1.01 Acknowledgement
It is a
matter of great Pleasure and enthusiasm for me to complete our project. It is
all because of Almighty Allah’s great guidance that made me do that.
I am
especially thankful to my respected Teacher Mr.Sohail who
provided, me an opportunity to prepare this Project report and encouraged me.
It was not possible without the guidance he provided to me, to complete this
project.
Section 1.02 Document Information
Document
Title
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Automate Inventory
System
|
Project Name
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System Automation
|
Supervisor
|
Mr.Sohail
|
Status
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Final
|
Viewed by
|
Mr.Sohail
|
Control info
|
30
|
(a) Version
Version
|
Status
|
Date
|
V-A
|
Final
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12/12/2010
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IVN
MS
|
Inventory
Management System
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BPR
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Business Process
Reengineering
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AS-IS
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Automate System
|
Section 1.03 Acronyms
Article II. Chapter 2
Client Company
ABC is a company of making
calculators and selling calculators to the market, they provide scientific
calculators with their innovative functional program.
Section 2.01 Description of problem
Having old system and manual procedure the
organization face many challenges due to its old system, problems in business
activity is becoming complex.
- Manual working of inventory
- Manually invoice generated
- Employee can easily make changes in manual updating
- Database not centralized
- No integration in branches and departments
- Time consuming manual processes
Section 2.02 Objective and Solution
The objectives of
Inventory Management are:
Section 2.03 About Vendor Company
XYZ is an ERP solution provide private firm. The firm founded in
2000 and it is providing following solutions and services.
·
Business
Process Reengineering (BPR)
·
Providing
e-business solutions
Section 2.04 Purpose
The
purpose of this document is to show how company prepares itself for BPR and how
each phase of BPR can be done in the following manner:
§ Identifying the existing processes.
§ Analysis As-Is Process and designing
To-Be Process Flows.
§ Pictorially representing As-Is and
To-Be process Flows.
This document also explains the the best solution for client
company according to company business processes and how company can gain
following benifts after automation:
§
Up-to-date information
about data processing resources through the creation and archiving of records
in a centralized repository.
§
Paper
less work
§
Reduce
risk
§
Save
money
§
Multiple
benefits
Section 2.05 Introduction
(a) Inventory Management system
The Inventory process is provided
with facilities to handle receipts, transfers, returns, sales and issues of
stock with full stock take and stock adjustment functionality, providing
management control over the quantity and value of stock on hand.
Article III. Chapter 3
Section 3.01 Business Process Reengineering
A
cornerstone of our operations is Business Process Reengineering (BPR). XYZ
works in tandem with our clients to assess requirements, analyze
existing systems, review best practices in industry and government, develop new
process solutions, integrate information technology, prove the
concept and integrate the final solution.
Section 3.02 BPR Methodologies
We are using the following
methodology for the success of the project.
§ Identifying and
analysis of existing process
Making cross-Functional Team to
understand the problems of existing process, having identified customer driven
objectives, develop the vision.
§ Map and analyze
AS-IS process
Make BPR team understand the existing
process, mapping existing process.
§ Redesign of the
existing process
Benchmarking processes identified
potential improvement to the existing process; develop to be process and
performing Trade off Analysis.
§ Implement the
redesign process
Redesign process as-is process,
Implementation of redesign process according to business policies. Develop
transition plan and training programs for the workers.
§ Continue
improvements
Maintain system, Improve continuously with new
innovations on the process according to the company vision.
Article IV. Chapter 4
Section 4.01 Core Process of INV
The core process of IVN:
Ø Purchasing Process
Ø Inventory Process
Ø Payables Process
Ø Sales order Process
Ø General ledger Process
1.
Purchasing Process
Complete procurement process
includes requisitions, Request for Quotations (RFQ’S) and Purchase orders (PO)
process.
2.
Inventory Process
Inventory is a complete
inventory management process that helps in controlling, inventory, ensures enough
supply for store management.
3.
Payables Process
Facilitate
the completion of procurement cycle and maintenance of supplier related
transaction for organization.
4.
Sales order Process
Processes
including quotations, standing orders, order entry, and invoice entry with
dispatch of goods.
5.
General ledger Process
Central repository for accounting
information, receiving transaction from sub ledgers
Article V. Chapter 5
Section 5.01 Firm Existing Processes Scenario
Section 5.02 As-Is Process Overview
(a)
Start
|
Requisitions
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If material
Is efficient?
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No
Check
requisition
Approved
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Supplier
Quotation
|
Quotation
analysis approved
|
Purchase
order
|
END
|
Request for RFQ’S
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Payments
Payable AP
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Receive items (INV)
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(b) Inventory Process (IVN)
INV
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Start
|
End
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VERIFY
ITEMS AGAINST PO & DILIVERY CHALLAN
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Adjust
quantity
After
approval
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Count
items physically
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Update
Inventory
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Receive goods against PO
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Carry out
inspection
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Transfer
balance to GL
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RETURN TO SUPPLIER
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(C) Payable
Process
Start
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Enter invoice
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Approve
Invoice
|
View invoice
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Sent invoice to GL
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End
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Pay invoice
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Matching invoice to PO
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Batch Invoice
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Article VI. Chapter 6
Section 6.01 Present System Weaknesses
There is presently no
Centralized Repository for asset information, because Inventory Management is
performed by many various groups (i.e., mainframe, communications, data
network, etc.). A consolidation of these data bases into a centralized
Inventory Repository should be planned.
Section 6.02 Existing Tools &Technology
Existing
scenario of ABC firm, using old system and manual work,
for inventory update MS ACCESS is in use and for generating payable note they
are using MS EXCEL, MS WORD is using for office documentation.
Technology used
Section 6.03 Software
- Windows XP environment
- MS office
(a) MS ACCESS
§ Limit
display to selected fields
§ Can
not support large volume of database
§ Not support scalable e-commerce
§ Not support data satiability
§ Does not support XML and HTTP
MS EXCEL
§ Not
easily sharable (except for Tools, Share workbook)
§ Non
relational
§ Not
scalable
§ Limited
Data Validation (except for Data Validation
§ Poor
Reports (except for Pivot Tables)
Article VII. CHAPTER 7
Section 7.01 Tools & Techniques
For
perfect support of new redesign process a number of tools and techniques are
used for successful implementation of new process.
Section 7.02 Development languages
There are number of
programming languages are used for software development now days, world wide
and are popular for perfection.
They are listed below:
v Java
v ASAP
v ABAP
v Visual
Studio
Java
Java is a programming language originally developed by James Gosling .it is a core component
of Sun Microsystems' Java platform.
Visual Studio
Visual
Studio includes a code editor supporting IntelliSense
as well as code refactoring. The integrated debugger works both as a source-level
debugger and a machine-level debugger. Other built-in tools include a forms
designer for building GUI applications, web designer, class designer, and database schema
designer.
ASAP
ASAP is ASP’s ERP
implementation methodology. In 1996, ASAP was introduced by SAP. It is abbreviation
of Accelerated SAP.
ABAP
ABAP is programming language
use for SAP developers to build transaction and customize SAP R/3. The main purpose of ABAP/4 is to provide additional functionality
to existing SAP applications.
FOR Database
v Oracle
v My SQL Server
Section 7.03 Proposed Tool & Techniques
v Create Centralized Repository of Inventory information.
v Utilize Automated Tools and Front-end to the Inventory Repository.
v Utilize a Criticality indicator to relate assets and their
criticality for disaster recovery purposes. This will allow for reports that
list all most critical resources for a specific location, by type and costs.
v Formulate a committee to investigate methods for improving
Inventory Management and implement the most rewarding suggestions from the committee.
v NCA/MVS is a useful tool for migrating existing stand-alone
(PC-based) inventory control data bases to host-based formats.
v All assets and their associated information are stored in a
centralized data base.
v Editing and browsing capability are available through an on-line
menu driven, front-end that provides restricted security access, if necessary.
v This security is provided through any number of host-based
security packages. Enterprise Physical Connection Tool (EPCT).
v EPCT is a locally developed application written by the ISSC
Corporation in C Language and provides browsing an editing capability on-line.
(a) Software
Visual Basic .NET (VB.NET)
§ Streamlined version of the user
interface
§ Automatic generalization
§ new controls like Menu Strip, Grid View, Tool Strip, and Web
Browser,
§ Intelligence Code Snippets that even show you what part of the
code you need to update,
§ AutoCorrect with the suggested corrections for automated
programming.
For Client System
Supported
operating systems such as Windows 2000 or Windows XP (Home
or Professional Editions)
for Client
(b) SQL Server Database
§ Database analysis for rapidly
delivering
§ Scalable e-commerce
§ Line of business and data
warehousing solution
§ Data satiability
§ Support XML and HTTP
§ Tuning functionality to automate
routine tasks
(c) JAVA
§ Usually it
is much more efficient than java and runs faster
§ Conditional
compilation
§ Simplified
multithreading
(d) Multiple Tiers
§ Better
performance
§ Load
balancing
§ Fail
over recovery
Article VIII.
Chapter 8 To-Be
Process
Section 8.01 Proposed Architecture
Section 8.02 To-Be Process
The
Inventory Management system and the Inventory Control Process provides
information to efficiently manage the flow
of materials, effectively utilize
people and equipment, coordinate internal activities, and communicate with
customers. Inventory Management and the activities of Inventory Control
do not make decisions or manage operations; they provide the information to
Managers who make more accurate and
timely decisions to manage their operations.
Section 8.03 Functional Areas
All
of the functional areas listed above can utilize the information contained
within the Inventory Management System's Central Asset Repository of
information. Additionally, the Recovery Management area could utilize inventory
information to identify an assets criticality (especially when the asset's
location and owner are identified within the Inventory Management System). Through the use of reports generated from the
Inventory Management System's Repository, it would be possible to obtain a
listing of all "Most Critical" resources, by location and group. This report would then serve as the basis of a
Business Recovery Plan.
Section 8.04 Integrated Inventory Management System
To
successfully implement an Inventory Management System, it is necessary to
integrate it within the everyday functions performed by company personnel. That
is, when a user wants to order equipment or software, they would call up the
Inventory Management System screen associated with purchase. Should a user request the purchase of a specific
type of asset, then it could be possible for the inventory system to determine
if the asset is already in surplus, or if it should be purchased under an
existing Volume Purchase Agreement with a vendor.
PURCHASE ORDER (PO)
Section 8.05 INVENTORY PROCESS
INVENTORY
MANAGEMENT PROVESS
|
Section 8.06 Purchasing process testing
Start
|
Requisitions
|
If material
Is efficient?
|
INV
|
AP
|
END
|
Quotation
analysis approved
|
Request for RFQ’S
|
Purchase
order
|
Supplier
Quotation
|
Check
requisition
Approved
|
Section 8.07 Inventory Process (IVN)
INV
|
Receive goods against PO
|
END
|
VERIFY
ITEMS AGAINST PO & DILIVERY CHALLAN
|
Carry out
inspection
|
RETURN TO SUPPLIER
|
Update
Inventory
|
Count
items physically
|
Adjust
quantity
After
approval
|
Start
|
GL
|
Section 8.08 Payable Process
Start
|
Enter invoice
|
GL
|
Approve
Invoice
|
Pay invoice
|
End
|
View invoice
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Matching Invoice to PO?
|
Article IX. Inventory Management Process Features
v Inventory management is
the active control program which allows the management of sales, purchases and payments.
v Enjoy
real-time, detailed visibility into key inventory control and supply chain
management measures, including inventory trends, stock on order, and supplier
on-time performance.
v Slash
inventory costs by tightening control of stock levels while increasing
operational efficiencies.
v Increase
product margins by effectively managing pricing based on different types of
customers, channels and currencies
v Gain
control over inventory replenishment and ensure that you have enough on hand to
fill anticipated orders,
while keeping excess stock to a minimum.
v Extensive
inventory management software features also include bin and lot management,
landed cost, demand-based replenishment, customer and volume pricing,
multi-location inventory, and more.
v Eliminate
inefficiencies throughout organization
with convenient online purchase order creation that allows you to replace
paper-based forms and time-consuming manual processes
v Streamline
requisition processes and improve collaboration with vendors by giving them
self-serve access to key data and information, including inventory reordering
points and transaction histories
v Track
costs and eliminate errors by creating a complete business process flow through
purchasing, receiving and account payables.
·
Optimized Manufacturing Processes
v Streamline
the assembly process by efficiently managing production work orders, building
multi-level assemblies, creating special purchase orders for components, and
seamlessly integrating with back-office operations.
v Inventory
management software helps create invoices, purchase orders, receiving lists,
payment receipts and can print bar coded labels. An inventory management
software system configured to warehouse, retail or product line will help to
create revenue for company. The Inventory Management will control operating
costs and provide better understanding.
Section 9.01 Reports
v Stock Ledger Report
v Stock Overview Report.
v Demand Supply Match Report.
v Valuated Stock Report.
v Inventory Aging Report.
v Inventory Turnover Report.
v Stock in Transit Report.
v Scrap Report.
v Blocked Stock Report.
v Days' Supply Report.
v Receipt and Issue Consignment
Stock at Customer Report.
Section 9.02 Risk
Lack
of knowledge
Team
member failing to met schedule
Not
meeting stakeholders’ objectives
Poor
leadership
Technical
and managerial problems
Fail
to analysis to generate viable solution
Not
identified requirements and unidentified requirements
Large
number of Cost involve
Existing jobs protected
No proper resources available
Low
Communication
Section 9.03 Appendix A: “GAP Analysis”
Current Process
|
Future Process
|
Purchase order Process
1.
Manually prepare RFQ
2.
Paper based bid package
3.
Mailing to bidders
4.
Wait for quotation
5.
Manually review
6.
Prepare purchase order
7.
Invoice sent to various departments
|
1.
Prepare RFQ on system
2.
Supplier receive mail
3.
Register for online participation
4.
Supplier enter online quotations
5.
Graphical quote
6.
Prepare purchase order
7.
Invoice centralized
|
Inventory Process
1.
Duplicate the data
2.
No data accuracy
3.
Waiting for PO
invoice
4.
Time consuming items
verification
5.
Updating inventory
through legacy system
6.
Wait for quantity
approval
7.
Sent inventory to GL
|
1.
Data cannot be duplicated
2.
Integrated database
3.
Automated
4.
Automated verification
5.
Automated quantity approval
6.
Invoice centralized
|
Payable Process
1.
Generate batch invoice one by one
2.
Take to much time for matching invoice to PO.
3.
wait for invoice approval
4.
sent invoice to GL
5.
update payables
|
1.
Invoice centralize
2.
Automated
3.
Automated approval
4. Save Time
5.
All reports are system generated.
6.
Automated update payables
|
Section 9.04 Approval
This
document is prepared for ABC Company, prepared by XYZ Company. Present to top
management of company for review. This document is based on final version of
V-A submitted to top management of ABC Company for approval of V-A version.
This project is approved by ABC Company’s top management.
Project
Title
Automation & Reengineering Of Inventory
Management System
Prepared By
|
Rabia
Iftikhar Ahmed
|
|
Supervised By
|
Mr.Sohail
|
|
Finalized By
|
Director of Computer Science
Department
|
ABC
Company
|
Signature
|
|
Reviewed By
|
Manager – IT
|
|
Authorized By
|
GM-IT
|
|
Approved By
|
Chief Executive Officer
|
Approval
Committee ________
Date
___________________
__________________________
|
Project Manager
[signature]
|
__________________________
|
CEO
[signature]
|
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