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OPERATIONAL FEASIBILITY
Background of Study
Farmacia Gentaro is pharmacy of San Juan, Sto. Domingo, Albay nearby
Pugad Lawin Park. Farmacia Gentaro has 3 employees. It was established in
April, 2008, Farmacia Gentaro was serving dominguenios for seven years. The
manager of this company is Mark Gentaro E. Machii. Farmacia Gentaro has a
net income of Php 60,000.00 70,000.00 monthly or 720,000.00 annually
depending on the demand of the products. Their sales increase from day-to-day
operations.
Point of sale (POS) is one of the essential components of a successful
business. It is a modern replacement for the cash register in retail application. It
can help to record securely all the sales and customers orders, track products
which are poor on business sales and of course manage inventory. Using
computerized point of sale will give benefits to the business owners, employees,
and to the customers.
Every day, technology upgrades. The proponents decided to propose and
pursue a Point of Sale System for Farmacia Gentaro to alternate their manual
system of serving customers. The main objective of this study is to create and
develop a computerized point of sales system that is completely responsible for
Farmacia Gentaro in support of the daily business transactions.
Opportunities
Based on the problems listed below, Farmacia Gentaro will be benefited of
the system. It can be; Secured data, Better standard of living, Experience In
handling business, Monitor sales transaction easily, Lessen the effort and time
being consumed during transactions and Helpful in manipulating the inventory of
sales and keeping up old records or document reserved for future use.
Problem Statement
Systems for recording financial transaction have always been important in
determining performance and worth of the company. Its been 7 years of serving
people in town of Sto. Domingo, Farmacia Gentaro is using manual based
system in processing sales transaction and they encountered some problems.
Some of these are listed below:
1. Difficulty in conducting the inventory.
2. Miscalculation of sales record.
3. Slow transaction process.
4. Disorganized data keeping and might lead to file lost.
Current Situation
Farmacia Gentaro was 7 years in the business. Currently they are using
manual based system in monitoring and processing sales transaction since it
was established. Sales transaction is recorded manually on a paper. The
enable admin or review any transaction and then print-out various types of
reports, and also to get the fulfillment rates of their sale.
Specific Objective
1.
2.
3.
4.
not included in the system. And the system cannot receive amounts on credit
card basis.
Responsibilities
The proposed system can be used daily by the business. It can be for a
lifetime transaction by the business. It can be lessen paper works and manipulate
data secured in the system. It minimizes time in just one click. The users who
have rights of using this system will need some practice on how to manipulate
the system.
Operational Chart:
Manager. The manager has the responsibility to oversee all functions of the
company handle payables and customer relations. Responsible of the money of
company. He is in charge to the decision making of the company. He has the full
control and access of the record in the system.
Cashier. The cashier is the one who is operating the cash register. They are the
one responsible in transacting with the costumer in paying bills and issuing
receipt.
Salesperson. The salesperson is the one who assist the customer, maintaining
an orderly store and ensure good service specially in locating certain items.
Constraints
Farmacia Gentaro has possible constraints that may influence on the
proposed system. Some of these are:
1. When the system is bar down, it will not work.
2. When there is an incorrect input by the user it may cause data
malfunction.
3. There is no technician to maintain the system.
Possible Alternatives
The basic alternative is to prevent problems that the system might
occur. It refers to solution in the constraints of the system. These are
possible alternatives:
1. It must be secure when storing files. Also provide administrator to
assigned username and password to secure information.
2. Management must select give responsibility to the persons that will
manage the products
Chapter 2
TECHNICAL FEASIBILITY
Point of sale system will provide clear, reliable and accurate data and
information in every transaction. The purpose of this chapter is to evaluate the
feasibility of and explore the technical parameters required for Farmacia Gentaro
It also discusses the system hardware and software and its importance on the
proposed system.
System Description
The proposed system in Farmacia Gentaro is Point of Sale with inventory
which can help the company in billing, monitoring the stocks, and issuing of
receipts, importing all the product and goods in a system by using databases. It
will help the system management to avoid errors and optimize the validity of
number of sales, supplies, purchase and their expenses monthly. It monitors the
frequency of theft, or breakage of products received. The manager and the
cashier will have the accessibility for the program.
When a customer approaches the cahier to complete a transaction, the
cashier will likely employ a computer or cash register to collect some basic
information. POS systems either require cashier to manually enter information
about the purchased items using a keyboard or use a bar code scanner to
automatically register product information. The computer system then retrieves
the item price and a basic description from a database, and some systems
automatically deduct the item from the retailer's inventory. When the cashier
indicates that she has registered all of the items in the transaction, the POS
system calculates a subtotal, applies any applicable taxes and presents a total
amount due. Adding items to the invoice updates the inventory.
In payment process, if the customer pays cash, the merchant typically
registers the payment amount with the computer, accepts the currency and
returns the difference between the tendered amount and the amount due in the
form of change. As printing the receipt, the information will be recorded to the
database, including the receipt number.
The user access of the manager allows monitoring and viewing the sales
inventory and transaction made by cashier to the customer. Also, updating the
items, adding new items to the database, and adding new number of stocks of a
certain product. The company can avoid running out of stocks of a product by
means of monitoring the remaining stocks.
System Users.
The focus is who is liable for the system. The one who manage the
system is the one who will have rights.
Manager. The manager has the authority to access the database system,
which allows the manager to acquire the sales report from its pharmacy system.
The manager has also the responsibility to oversee all functions of the system to
handle payables and customer relations. Responsible of the money of company.
Cashier. The cashier is the one who provides the billing receipt to the
customers. The receipt will be printed based on the order made by the
customers.
System Data
An entity-relationship diagram (ERD) is a type of data modeling that
shows a graphical representation of objects or concepts within an information
system or organization and their relationship to one another.
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quantity of the products that customers wants to buy, system will automatically
compute the ordered items. Payment shall follow. Printed receipt will be given to
the customer. The database will automatically save and update the data gathered
as inventory. The cashier will update the sales to the database and transaction
will be recorded automatically.
Once the data are sent, the manager will receive report about the total
sales. The manager will view the reports for the inventory of the products and
also to update and checked their stocks.
Exploded Diagram
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needed from the database. Updating an item is also necessary that allows the
user to add new numbers of stock of the products.
Technical Resources
The Technical Resources for the proposed system are categorized into the
hardware and the software.
This also refers to the one who has confident in managing the system, like
professional IT or engineer that will manage and check the system about the
process so that they can easily identify and fix the problems encountered in their
system.
Hardware
Hardware is a collection of all the parts that can be physically
touched. It includes monitor, mouse, keyboard, motherboard, RAM,
processor, hard disk drive, Automatic Voltage Regulator and other parts
that are tangibles.
Hardware refers to the tangible parts of the system. To avoid
system failure once it is implemented, the system requires compatible
specification for the hardware.
Software
Software is a collection of instructions that enables the user to
interact with a computer or have it perform specific task for them. Without
software computer will be useless.
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Description
Minimum
Recommended
Hardware
Monitor
LCD monitor
LED monitor
Mouse
Keyboard
Standard Keyboard
A4TechStandard
Keyboard
Motherboard
Intel motherboard
UPS
500W APC
500W APC
80GB memory
AVR
500VA
500W AVR
LS-2208A laser
Barcode scanner
Epson TM-T88IV
TSC TTP-247
Barcode Scanner
Thermal Printer
Thermal Printer
Processor
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Table 1. Hardware
The monitor will display the output and processes made by the users. The
mouse and keyboard are the primary input devices. The motherboard and
memory will be used for the processes of the computer unit. The hard disk will
serve as the memory storage. The processor is used for the speed of the system.
Table 2. Software
Software Specifications
Software
Minimum
Recommended
Operating System
Windows 7 ultimate
Windows7
Professional
Programming language
Database Software
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Plate 4, allows manager to add new items to the database. The item code
must be unique. The system will check the database whether the codes already
exist or not before adding it to the database. The remaining stock depends on the
total stocks of the item since it has just to be added as new item.
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Chapter 3
SCHEDULE FEASIBILITY
The purpose of this chapter is to discuss the schedule of the proposed
system.
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1st Month
Week(s)
2nd Month
4
3rd
Month
4
4th
3
5th Month
1
6th Month
4
Preliminary
Investigation
Problem
Analysis
System Design
Implementation
Review and
Maintenance
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developer makes computerized sales and inventory system to solve the problem
encounter by Farmacia Gentaro.
System Design
Farmacia Gentaro will be benefited of the proposed system when it comes
to recording their sales transaction and even inventory management. In system
design, the proposed system focuses on what software they will be using for the
development and how they will perform it.
Implementation
Upon implementation of the system, the hardware and software should be
checked in order to assure the performance of the system. The owner as
manager has ability to be responsible in using the proposed system. If there are
errors and bugs, debugging will be conducted. There must be someone that will
maintain the system.
Review and Maintenance
This is the last phase of the study. The review and maintenance is the
observation of the user to the system to make sure that the system will be
working efficiently, and to maintain the security of the system will surely cause
less error and time consuming. The break-down of the system must be fixed by
the technician or anyone from the company who is intelligent of fixing encounter
problems on hardware. Maintain must be twice a year after implemented. The
proposed system will be used for lifetime operation.
Chapter IV
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Economic Feasibility
The purpose of this chapter is measure of the cost-effectiveness of an
information system solution of Farmacia Gentaro where the system will be
implemented.
Benefits
The proposed system main goal is to develop a computerized system that
allows fast transaction and accurate data recording. Famacia Gentaro will be
benefited below:
Tangible benefits:
1. Improves the productivity of process and personnel
2. Lowering the cost of products and services purchased
3. Paper and postage cost reductions
4. Inventory reduction
5. Lead time reduction
6. Reduced stock obsolescence
7. Faster product / service look-up and ordering saving time and money
8. Automated ordering and payment, lowering payment processing and
paper costs
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Intangible benefits:
1. Increases organizational transparency and responsibility
2. Accurate and faster access to data for timely decisions
3. Improved customer response
4. Saves enormous time and effort in data entry ;
5. More controls thereby lowering the risk of mis-utilization of resources
6. Facilitates strategic planning
7. Uniform reporting according to global standards
Total Project Cost
This phase explain the capital needed to finance the system in the
implementation of it. This is all about the cost of the designate user of the system
and the casual cost needed in the process.
Table 4. Project Cost
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8,500.00
22,000.00
Barcode Scanner
2,000.00
PHP 32,500.00
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This phase point out the cost need of the proposed system. When the
system implemented the person who will be managing system will experience
training to maintain the system.
Table 5. Operational Cost
Operational Cost
Expenses
Cost
Supplies
1,500.00
Maintenance
2,000.00
Total Expenses
3,500.00
Table above shows the operation cost monthly includes supplies and
maintenance that will be using monthly. In supplies it includes the bond paper
and ink. When the system encountered problems on hardware maintenance fee
will be consumed.
Accounting Methods
This phase discussed explanation of the financial cost of the system and
how to handle it expertly. Since Farmacia Gentaro is using manual basis in their
daily business transaction. The proponents are implementing the system to the
pharmacy to automate their POS and make the transaction fast and reliable.
Point of Sales System is designed to develop a faster transaction. It is
flexible in managing the stocks, sales and inventory report, and the new products
order
accurately. The
following
sections
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shows
the
computation
how
economically feasible the system once it is implemented and how long will take
to return the income of the pharmacy after buying the system.
Payback Period =
Cost of Project
Annual Cash Flow
720,000.00
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ROI =
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35%
Based from the computation above, 35% of its investment will return to the
company. This proves that the company is capable of buying the system and they
can gain their investment back in a minimal time.
Chapter V
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter discusses the summary and findings in the study. The
conclusion and recommendation is provided for the company, the user, and the
future researchers. POS (Point-Of-Sale) machines and cashless transactions are
an integral part of todays shopping experience. It provide businesses with the
capability to retain and analyze a wide variety of inventory and transaction data
on a continuous basis.
Summary
This study aims to help Farmacia Gentario with its business process and
make those more civilized. Farmacia Gentaro had continuous business process
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for over a years, continuous but salesperson had hard time, good system but not
better for the company for the daily business transaction, manually taken but not
always accurate it always depends on how the salesperson will do this work.
The proposed system is operationally feasible. The needed resources are
available anytime. The hardware and software required is of high quality and of
reputable brand to minimize the time of the system to depreciate.
The proposed system is technically feasible. The transaction process will
become faster, accurate and updated. Unlike the manual process, the company
can only update their stocks after the manual computation. The system will
automate and make the stocks organized.
The proposed system is also economically feasible. The cost of the
system is just right to invest with. The companies can loss thousands of pesos
every year in recording the manual transactions. An investment of Php 32,500 is
nothing compared to what they loss in their manual system. The company will
earn more than their investment and will make the business profitable.
Conclusion
The developer takes the owner problems in the business, to know what
the need of Farmacia Gentaro is. The developer found that the problem of
Farmacia Gentaro is the process of their manual sales and inventory and the
transaction of purchasing item. Because sometimes they cannot monitor if they
have a stock. So sometimes the process takes a long time in searching the
items. Which obstruct in the customer and to the employee? And in terms of
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inventory they compute their sales through manual computation, and the owner
does not know if the sales of Farmacia Gentaro will increase or decrease. The
software is focused on the transaction of POS (Point of Sale), Inventory system,
and report that gives benefits to the owner, employee, and to the user.
The software meets the need of owner, the POS now is easier than the
existing system the employee can easily search the number of items they have.
And in terms of Inventory the owner can automatically see the sales of the day,
because the software automatically give reports to the administrator account.
Recommendation
One major concern of the proposed study is the people to benefit from it.
They recommend this system to Farmacia Gentaro for fast process. It is very
useful to same employees who in-charge of the stocks, sales, and inventory in
their company. In using that system the process would be easily and quickly than
the previous process.
After thorough analysis of the system, final recommendations for the
company and the future researchers are included in this chapter.
For the Company:
1. The use of Point of Sale System in the company, Farmacia Gentaro
will be beneficial in its business growth.
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