Name : Alex EllisSchool : Oberlin HighTerritory : JamaicaRegistration # : 100086Teacher : Mr. StanburyCentre # : 100086Date : April 2011
CONTENT PAGEAcknowledgement 3Problem Definition 4-5Schedule of Activities 6Ghant Chart 7Analysis of the problem 8 - 10Identification of solutions 11Evaluation of Solution 12 - 14Selection of Solution 15Justification of Solution 16 - 18Appendices 19 - 22
The researcher would like to thank God almighty for giving him the health and strengthhe need to complete this Information Technology School Based Assessment, so as to meet therequirements of the Caribbean Advanced Proficiency Examination syllabus. Also the researcherwould like to extend his gratitude to Mr. Stanbury for giving him this assignment and guidinghim along the correct path. The researcher would like to say big thanks to his mother who encouraged him along theways as well his classmates who assisted him. The researcher would also like to thank his fellow classmate for their assistant they gaveto him during the course of this assessment.
Richwal Trading Company located in the Buff Bay community in Portland has been inoperation since 1984. The company buys and sells lubricants, vehicle accessories and otheritems. The company has an issue over the years of operation with its warehouse. The warehouseof the company is holding area for inventories that are not displayed to the public. The issue thecompany faces with its warehouse is the continuous lost of inventories, without anyone able togive an account for the missing inventory or inventories. This has resulted in the companyloosing thousands of dollars each year. This problem was started in 1990 when the company started purchasing a large amount ofstock so as to obtain discounts on purchases from its suppliers. The problem has grown over theyears since its inauguration in 1990 to a large scale because the company sales has increase dueto an increase in population and the lack of a good competitor to take a share of the market. Thisissue as grown although there have been several changes in staff members because it is evidentthat there is a loop hole to the company operations. The problem with the warehouse affects both owners at workers of the company and alsothe government of the country. The owners of the company is more affected by this problembecause the company would have to borne a higher cost of goods sold which will reduces thecompany gross profit. A reduction in gross profit will see owners receiving a smaller amount ofnet profit which is added to their capital. Workers of the company are affected emotional on a
diminutive scale because it’s not all the time they are called in and question about a missinginventory. When they are called they can be interrogated in an ill mannered way, which makesthem feel disparage at times. The government an external body is affected without theirknowledge. The government which collects taxes on a percentage of profit could have receivedhigher revenue from collection of taxes if the company profits where higher. The problem which is being investigated can be solved with the use of informationtechnology.
DURATION PREDECESSORTASK A Identification of Problem 4 NONETASK B Construct of Interview Questions 3 ATASK C Construct of Questionnaire Questions 4 ATASK D Carry out Observation 7 ATASK E Report On Interview 2 BTASK F Report on Questionnaire 5 CTASK G Carry Out Background Research 4 ATASK H Report on Background Research 1 GTASK I Analyze Observation 3 DTASK J Identification of Possible Solutions 3 ITASK K Evaluation of Possible Solutions 5 JTASK L Selection of most Feasible Solution 4 KTASK M Justification of most Feasible Solution 10 LTASK N Organization of Project 9 M
Indentification of Problem Construct of Interview QuestionsConstruct of Questionnaire Questions Carry out Observation Report On Interview Report on Questionnaire Carry Out Background Research Report on Background Research Analyse Observation Indentification of Possible Solutions Evaluation of Possible Solutions Selection of most Feasible SolutionJustification of most Feasible Solution Organization of Project
In order for the researcher to analyze the problem that Richwal Trading Company facesseveral facts finding techniques would have to be used to gather data on the problem to find outthe possible cause or causes of the problem. The fact finding techniques that will be used consistof an interview with the company’s manager, an observation at the company for one week, aquestionnaire that will issued to seven workers and a background research. These techniques areexpected to give causes of the problem that exist at the company. An interview is a conversation between two people – the interviewer and the interviewee,where questions are asked by the interviewer to obtain information from the interviewee.Interviews allow for more interaction with the persons involve in the problem which will resultin better a feedback been given and more clear answers. However interviews are timeconsuming. An interview with the managing director of the company about the problem thecompany warehouse faces reveals that all workers at the company are granted access to thecompany warehouse. The managing director also states that currently there is no worker assignedto the warehouse to monitor the inflows and outflows from the warehouse, and that there are notany documentation of the items kept in the warehouse. A background research was done on problems relating to the one currently beinginvestigated. A background research refers to accessing the collection of previously publishedand unpublished information about a site, region, or a particular topic of interest. It allows forunderstanding of a problem or issue, but also can be out dated at times. The background research
showed that the cause of such problems is due to the lack of control systems which wouldinclude; adequate documentation, segregation of duties, safeguarding and proper authorization.A control system with the features listed above is likely to be efficient enough to give accountfor inventory in a company. The research also indicates that security cameras are excellentmeans of monitor inventory, since they are able to record all the activity that the camera covers. An observation at the company warehouse was carried out for one week to gather moredata on the problem at hand. An observation as defined by the oxford dictionary is the act ofobserving or watching of people, animals or things. The company presently employs a total ofseventeen (17) workers. During the week of observation all seventeen members of staff enteredthe warehouse for various reasons without any authorization. Figure 2 in the appendices showsthe amount of workers that enters the warehouse during the week of observation. On day six ofthe observation all workers entered the warehouse this was due to the amount of business activityproceeding, on a day like this at the company it is unable to say who remove what from thewarehouse. The observation also highlighted that there is no individual that is assigned to thewarehouse to manage the daily operation of the warehouse. The observation also disclosed thatthere were no alarm system or security cameras installed inside or outside of the warehouse, incase of a burglary so as to give evidence or summoned the police. The observation also divulgedthat the keys to the company warehouse were not monitored as well. A questionnaire consisting of six open and close ending questions were issued to sevenworkers at the company, they were fully completed and returned days after issue. Aquestionnaire is a written set of questions answered by a number of people to provideinformation for a survey. A sample of the questionnaire that is not completed can be seen infigure 3 in the appendices. The questionnaire showed that eighty six percent of the workers
access the warehouse on a daily basis while the remaining fourteen access the warehouse but noton a daily basis. All the workers indicated that they don’t need any permission or reason to gainaccess to the warehouse, all is required of them is to fetch the key and help source whatever theywant for the daily operation of the business. Workers of the organization are of the view thatsenior management and owners doesn’t want to invest in the company’s security but are moreinterested in increase of their fringe benefits and allowances. Workers went on further to say thatthe company can resolve this issue in no time because it has being growing over the years in sizeand capital employed. Workers at the company would like for the problem to be resolve as quickas possible because it can have a negative impact on them; where they are being accused at timesby other workers. From the fact finding techniques used by the researcher to analyze the problem, it can beconcluded that the cause of the problem that the company faces is due to improperdocumentation, no authoritative control over the warehouse and the lack of safeguarding. It canalso be concluded that company does not spend on security.
The researcher after reviewing and analyzing the problem by the use of four fact findingtechniques came up with two possible solutions for the company’s problem. These solutions arenamely: Installation of security cameras and Creation of a database management system to manage inventory. In addition to the two possible solutions an alarm system would be installed no matter whatsolution is chosen. It is said installation of both solution would make a very efficient internalcontrol system but would be too expense presently so an evaluation of the solutions would bedone before choosing the most feasible solution.
INSTALLATION OF SECURIY CAMERAS The installation of security cameras would an excellent be a solution for solving theproblem the company faces because it posses the necessary criteria to get the problem solved.Reason been security cameras will have a record of all activities that takes place in thewarehouse. Security cameras will also reduce theft since it will be drive fear into individuals whoindulge in these activities. The installation of the security cameras will require the following: six security cameras, atelevision, thirteen yards of cable, a desk for the television, a DVD player and a canesta of DVDsfor start of the project. The Personnel would be hired to watch the cameras on a daily basisduring the opening hours of the company. The cameras would be installed by a current memberof staff who will be paid four thousand dollars ($4 000.00). The company is expected to borne anadditional six hundred and fifty three dollars four cents ($653.04) to its electricity bill if thecameras where to be installed each month. The total start up cost that the company will disbursewould be three hundred and twelve thousand four hundred and twenty dollars ($312 420.00) andtwo hundred and ninety eight thousand eight hundred and thirty six dollars ($298 836.00) eachyear after. How will this solution work? The solution would work basically by making sure there isfull productivity and efficiency in the process. The six cameras that would be installed would
cover the entire area of the warehouse at once. All the data that is gathered by the securitycameras would be recorded on a DVD. There wouldn’t be an issue of time being lost when a discchange is in process, because the DVD player that would be used for recording is a three discplayer. Any time that is lost in recording while the personnel is at work, he or she would be finebased on the amount of time that is lost. The personnel will be responsible for proper storage ofthe DVDs in case they are needed for future reference. The personnel which will be hired will befrom another parish and will work in isolation from the other workers. This will allow for nocommunication between the personnel and the other members of staff.CREATION OF A DATABASE MANAGEMENT SYSTEM The database management system which will administer the company inventory willnecessitate a desktop computer, database management software, an ethernet cable, a computerdesk, personnel with the ability to use the computer as well as the software, and other basicsoftware such as Microsoft Office Word. This solution will have a startup cost of two hundredand sixty three thousand and thirty dollars ($263 030.00) and a yearly cost of three hundred andsixteen thousand nine hundred and three dollars ($316 903.00). The personnel would be responsible for inflows and outflows from the warehouse. Thedatabase management software that would be used would be built specifically for the companypurposes. Hence the software would be customized. The software will allow the user to inputinventories and the outflow of inventories. The system would be able to give the value of closingand opening inventories at any given point for the warehouse. The personnel will be responsible
for the maintenance of the warehouse and this will cut a yearly cost of twenty four thousanddollars ($24 000) which paid for warehouse upkeep. The inventories that will be received and stored in the warehouse the personnel isresponsible to have a copy of the invoices that goes to the purchasing department and a stockrequisition card for the inventories leaving the warehouse so has to have a hardcopy andsignature attached to it for verification. The personnel hired have to liaison with the purchasingand sales department in the company. This can create an ambiguity in solving the currentproblem since the parties over time can form an alliance and create the problem all over again. A solution like this if implemented can be linked to the company point of sale system inthe future through a network, if the company size remains the same. However if the company isto expand, the warehouse can operate like a supplier to the company where there would becomplete control operations and no loose ends for the creation of a previous problem.
The problem highlighted above the most feasible solution would be to implement securitycameras. Security cameras if installed will be easily operated after installation all is required is towatch a television and to load DVDs when needed, therefore there is not much technicality inoperating the cameras and other equipments. In the long term security cameras would be moreeconomical since the cost of keeping it each year is cheaper than keeping a databasemanagement system, however the implementation cost is more expensive than implementing adatabase management system. The solution is not involved in data communication andnetworking because the security cameras work in seclusion from the rest of the companyoperations. In Jamaica where the company is domicile it is legal to install security cameraswithout informing anyone about them. Therefore it would be legal if the company is to installsecurity cameras without facing any legal formalities. The cameras and television is expected tohave a life span of twenty five years in the company and is also expected to be service only sixtimes in their life span. The operational, technical, economical and legal aspects surrounding the solution dictatethat this is the most feasible solution for the problem that is mention in this research.
The solution which was given in the above section can be justified by weighing up theother possible solution that was indentified earlier on. To justify the solution the criterion thatwas used to evaluate the solutions identified would be used, as well as other criterion thatweren’t used in evaluation the of solutions. These criterions consist of; cost, personnel required,software required, the efficiency of the solution and the impact it has on the environment. The security cameras installation will have an initial cost of three hundred and twelvethousand four hundred and twenty dollars ($312 420.00) which is more expensive than installinga database management system which has an initial value of two hundred and sixty threethousand and thirty dollars ($263 030.00). Although the security cameras installation areexpensive in the short run of the business, however they will work out cheaper in the long runthat is any time after three years of installation. This is as a result of the cost that is associatedwith maintaining the each system. As depicted in figure four in the appendices where it showsthe total cost for each year, after year one the total cost of the security cameras installation is sixhundred and six thousand two hundred and fifty six dollars ($606 256.00) and five hundred andseventy nine thousand nine hundred and thirty three dollars ($579 933.00) for databasemanagement systems, nine hundred thousand and ninety two dollars ($900 092.00) for camerasand eight hundred and ninety six thousand eight hundred and thirty six dollars ($896 836.00) fordatabase management system in year two, but as year three is completed there is a switch in thehigher total cost from security cameras to database management systems, where the security
cameras total cost are one million one hundred and ninety three thousand nine hundred andtwenty eight dollars ($1 193 928.00) and database management system is one million twohundred and thirteen thousand seven hundred and thirty nine dollars ($1 213 739.00). It can beclearly shown that if the company installs the security cameras it would be more economical thanimplementing a database management system in the long run. The solutions that were identified a personnel is required to monitor it. The databasemanagement system would require a personnel with a certain amount of information technologyskills, while for the solution selected all is required of the personnel is the ability to read andwrite. Since the personnel for the database management system will require special skills thesalary package will have to be higher than regular personnel what is required to watch atelevision. It can be stated that the personnel that is required for the security cameras solutionwould be much easier to recruit and maintain than an information technology personnel. A database management system require a database software to manage the files thatwould be stored, and the software that will be used is a custom software and getting a specializedsoftware can take time and some level of difficulty in getting the software updated. If thesoftware is to be updated it would require access to the internet. Accessing the internet can allowhackers to gain access to the system and opening the gateway form virus and malwares. Howeversecurity cameras do not require any software, therefore it does not have to go through all theproblems that were just being highlighted. Efficiency is a factor to consider when making a decision. In solving the problem on handthe most efficient solution is the security cameras because it does not allow for any ambiguity in
its process while the database management system allow for a small amount since workers areable to communicate with the person that is in charge of the system. Another criterion would be the impact the solution has on the environment. Bothsolutions are tied equally on this issue because they both does not affect the externalenvironment no more than the other.
INTERVIEWF QUESTIONS1. What is the problem that the company faces with its warehouse?2. How long has this problem being in existence?3. What do you think are the causes of this problem?4. Who are the persons who are granted access to the warehouse?5. Is there any worker with the responsibility of monitor the warehouse?6. How this problem does affect the organization?7. Can the company afford to put a system in place to resolve this problem?8. What kind of system would the company like to resolve thisFIGURE 1 problem?
18 16 14 12 10 ENTERED 8 DID NOT ENTERED 6 4 2 0 DAY ONE DAY TWO DAY THREE DAY FOUR DAY FIVE DAY SIX DAY SEVENFIGURE 2 QUESTIONNAIRE 1) Do you access the warehouse on a daily basis? Yes No 2) Do you need permission to access the warehouse? Yes No 3) What is your view on the problem that company faces with the warehouse? _______________________________________________________________________ _______________________________________________________________________ 4) How do you think the company can resolve this issue? _______________________________________________________________________ _______________________________________________________________________ 5) Does this problem affect you as a worker? Yes No 6) If yes, how does this problem affects you? _______________________________________________________________________ _______________________________________________________________________ FIGURE 3
Uses the Warehouse Daily Not Daily 14% Daily Acces 86%FIGURE 4 2000000 1800000 1600000 1400000 1200000 1000000 DATABASE MANAGEMENT SYSTEM 800000 600000 SECURITY CAMERAS 400000 200000 0 YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5FIGURE 5