INTEGRATED SUPPLIER MANAGEMENT SYSTEM A CASE STUDY: PARL BONE MILLS

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INTEGRATED SUPPLIER MANAGEMENT SYSTEM
A CASE STUDY: PARL BONE MILLS
TANVI RAHMAN BIAS
A project report submitted in partial fulfilment of
the requirements for the award of the degree of
Master of Science (Information Technology - Management)
Faculty of Computer Science and Information System
Universiti Teknologi Malaysia
APRIL 2007
iii
Dedicated to Ammu and Abbu
who always bring smile on my face…
iv
ACKNOWLEDGEMENTS
In the name of Allah, Most Gracious, Most Merciful.
First and foremost I thank Allah for having finally made my ambition dream and
humble effort in obtaining this Masters degree a reality.
I would like to express my sincere gratitude to my supervisor Dr. Othman
Ibrahim; for the precious guidance, to all the lecturers of FSKSM; for the priceless
knowledge and advice
I owe my deep gratitude to the Managing Director of Parl Bone Mills, Sk. Ali
Ahmed, who showed me a high level of co-operation and support. Indeed without his co
operation this study would not have been completed.
My deepest gratefulness also goes to my beloved mother, my father, my motherin-law, father-in-law, my brother, sister-in-law, and my cousins for their huge
encouragements
To my beloved husband, Mohammad Nazmus Sakeb, thank you for the
encouragement, for being my inspiration and most importantly, for your endless love and
co-operation
To my friends, thank you for sharing the experience; for all the motivation and
encouragement.
And to my cute kid for keeping my mind off trouble time to time.
I thank you all.
v
ABSTRACT
Effective supplier management is vital for successful business operation
of any business organization. Supplier management is a technique and continuous activity
that used to control and make decision about supplier management. Cooperative
managers make wise supplier management decision by using supplier management
strategy as part of an organized plan. Therefore the research is to implement IS in
supplier management at PARL Bone Mills. The Management Information System (MIS)
will propose a decision making process for the management at PARL Bone Mills. From
the initial findings, the management often faces some problems in taking the supplier
record where it is done manually. Therefore, the proposed MIS system will be able to
choose a useful supplier who will make available of right product as per the
organization’s need. By implementing ICT strategy successfully at PARL Bone Mills,
especially MIS system, it is hoped that it can bring some effective and efficient
improvement to their supplier management system and this project will also help them to
reduce their misuse of time.
vi
ABSTRAK
Pengurusan pembekal yang efektif adalah penting untuk kejayaan operasi
perniagaan. Pengurusan pembekal merupakan satu teknik dan aktiviti berterusan yang
digunakan untuk mengawal dan membuat keputusan mengenai pengurusan pembekal.
Pengurus akan dapat membuat keputusan dengan cekap menerusi strategi pengurusan
pembekal yang merupakan salah satu langkah dalam pelan pelaksanaan sesebuah
organisasi. Oleh hal yang demikian, kajian ini adalah untuk melaksanakan Sistem
Bantuan Keputusan untuk membantu membuat keputusan dalam pengurusan pembekal
untuk Parl Bone Mills. Menerusi kajian literatur, pengurusan kerap kali berdepan dengan
masalah yang melibatkan pengurusan rekod pembekal dimana sebelum ini ia diuruskan
secara manual. Oleh itu, cadangan Sistem Bantuan Keputusan ini akan dapat membantu
membuat pemilihan pembekal yang terbaik dalam memberikan bekalan tertentu
berdasarkan permintaan organisasi. Dengan melaksanakan Sistem Bantuan Keputusan
dalam Parl Bone Mills, diharap ia akan membantu aktiviti pengurusan ke arah
pengurusan pembekal yang lebih efektif dan efisyen
vii
TABLE OF CONTENTS
CHAPTER
1
2
TITLE
PAGE
TITLE
i
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xii
LIST OF FIGURES
xiii
LIST OF APPENDICES
xv
PROJECT OVERVIEW
1.1
Introduction
1
1.2
Problem Background
3
1.3
Problem Statement
4
1.4
Project Objective
5
1.5
Project Scope
6
1.6
Importance of the project
6
1.7
Summary
7
LITERATURE REVIEW
2.1
Introduction
8
2.2
Supplier
10
viii
2.2.1 Characteristic of useful supplier
10
2.2.2
Selecting the supplier
12
2.2.2.1 The Challenge in selecting supplier
13
2.2.2.2 Techniques in selecting supplier
13
2.2.2.3
14
2.2.3
Deliverables
Psychology of supplier relationship
2.2.4 Supplier Rating
2.4
2.5
19
2.2.4.1 Objectives of supplier rating
20
2.2.4.2 Elements of supplier rating
21
2.2.4.3 Use of supplier rating
22
2.2.5 Supplier Certification
2.3
15
24
2.2.5.1 Steps of certification process
24
2.2.6
Supplier Survey
25
2.2.7
Proffered Supplier
26
Inventory
27
2.3.1
Definition
27
2.3.2
Category of Inventory
28
2.3.3
Maintain efficient Inventory levels
29
2.3.4
Order efficiency
30
2.3.5 Make physical Inventory counts
31
2.3.6
31
Handle Inventory like dollars
Supply Chain Management
32
2.4.1
Components of Supply Chain Management
33
2.4.2
Planning of Supply Chain Management
34
2.4.3
Organizational study of SCM
37
2.4.4 Impact and Benefit of Supply Chain Management
39
2.4.5
40
Conclusion
Management Information System
40
2.5.1
Definition
41
2.5.2
Background of MIS
42
2.5.3
Types of MIS
44
ix
2.5.4
Five Major elements for MIS
46
2.5.5
Classification of MIS
48
2.5.6
Steps in developing MIS
49
2.5.7 Benefits of MIS in Organization
52
2.5.8
User Interface for MIS
53
2.5.8.1 Types of User Interfaces
54
2.5.8.2 Methods Used in Formulating the UID
55
2.5.8.3 General Principles of Good UID
59
Different level of users in IS
60
2.5.9.1 User Model
61
2.5.10 Presented Model for different users
62
2.5.9
3
METHEDOLOGY
3.1
Introduction
65
3.2
Project Methodology
65
3.2.1 Planning Phase
66
3.2.1.1 Project Identification and Selection
67
3.2.1.2 Project Initiation and Planning
67
3.2.2 Analysis Phase
3.2.3
3.2.2.1 Determining Requirements
68
3.2.2.2 Structuring Requirements
68
3.2.2.3 Alternative Generation and Selection
68
Design Phase
69
3.2.3. Designing the Human Interface
3.2.3.2
3.2.4
67
Designing Database
Implementation and Operation Phase
69
69
69
3.3
System Development Methodology
74
3.4
Hardware and Software Requirements
75
3.5
Project Schedule
76
3.6
Summary
77
x
4
SYSTEM DESIGN
4.1
Introduction
78
4.2
Organizational Analysis Findings
79
4.2.1
Organization Structure
80
4.2.2
Activities in PARL Bone Mills
82
4.3
4.4
4.5
As-Is Process
82
4.3.1
Activity and Data model
84
4.3.1.1 Use Case Diagram
85
4.3.1.2 Use Case Description
87
4.3.1.3 Activity Diagram
93
4.3.1.4 Class Diagram
93
4.3.1.5 Sequence Diagram
95
User Requirements
95
4.4.1
Functional Requirement
96
4.4.2
Non-Functional Requirement
96
To-Be Process
97
4.5.1 Activity and Data Model
99
4.5.1.1
Use Case Diagram
99
4.5.1.2
Use Case Description
101
4.5.1.3 Activity Diagram
110
4.5.1.4 CRC Card
110
4.5.1.5 Class Diagram
111
4.5.1.6 Sequence Diagram
112
4.6
System Architecture
113
4.7
User Interface Design
114
4.8
Database Design
116
4.9
Summary
116
xi
5
DESIGN IMPLEMENTATION AND TESTING
5.1
Introduction
117
5.2
System Implementation
118
5.2.1 Software Installation
118
5.2.2
Database connection
122
5.2.3
Module Application Programming
123
5.3
6
7
Testing
124
5.3.1 Unit testing
124
5.3.2 Integration testing
125
5.3.3
System testing
125
5.3.4
User acceptance test
128
5.4
User manual
129
5.5
Summary
129
ORGANISATIONAL STRATEGY
6.1
Introduction
130
6.2
Conversion Strategy
130
6.3
System Implementation
131
6.4
Benefits of implementing DSS in PARL Bone Mills
134
6.5
Summery
135
CONCLUSION
7.1
Introduction
136
7.2
Achievements
136
7.3
Constraints and challenges
137
7.4
Lesson Learned
139
7.5
Aspiration
139
7.6
Future Strategy
140
xii
7.7
Summery
140
REFERENCES
141
APPENDIX A-I
143-188
xiii
LIST OF TABLES
TITLE
TABLE NO
PAGE
2.1
Objectives of Supplier rating
20
3.1
Activities in Project Development Phase
71
3.2
Software required for developing the system
75
4.1
Activities that involve in supplier management
84
4.2
Functional Requirement for Project
96
4.3
Non- Functional Requirement for Project
97
5.1
Black box testing/ Unit testing
127
5.2
UAT Summery
128
xiv
LIST OF FIGURES
FIGURE NO
TITLE
PAGE
2.1
Main topics that be discussed in Literature Review
9
2.2
Operating cycle of goods in manufacturing business
28
2.3
Process that produces the three types of inventory
29
2.4
SCM Planning
34
2.5
SCM Execution
37
2.6
Five major elements in MIS
48
2.7
Steps in developing MIS
51
2.8
MIS process report
53
2.9
Main classes of the proposed framework
63
3.1
Phases in SDLC
66
3.2
Operational Framework of the `Project
70
3.3
The prototyping Method
74
4.1
Organizational Structure of Parl Bone Mills
81
4.2
Activities of supplier management
83
4.3
Use case Diagram
86
4.4
Use case Description for Check Order in hand
88
4.5
Use case Description for Check Warehouse stock
89
4.6
Use case Description for Order for Raw Material
90
4.7
Use case Description for Get Raw Materials
91
4.8
Use case Description for Record Raw Materials
92
4.9
Class Diagram
94
4.10
Frameworks for DSS
98
4.11
Use Case Diagram
100
4.12
Use Case Description for Check Shipping Order
101
4.13
Use Case Description for Check Raw Material Stock
102
4.14
Use Case Description for Check Material in Production
103
xv
4.15
Use Case Description for Get Supplier Information
104
4.16
Use Case Description for Choose Supplier for order
105
4.17
Use Case Description for Approved Supplier
106
4.18
Use Case Description for Place Order
107
4.19
Use Case Description for Get Raw Material
108
4.20
Use Case Description for Update Supplier Information
109
4.21
Class Diagram
111
4.22
System Architecture
113
4.23
Windows Navigation Diagram
115
6.1
Change plan for PARL Bone Mills
131
6.2
System Implementation Steps
132
xvi
LIST OF APPENDIX
TITLE
APPENDIX NO
A
PAGE
Gantt Chart
143
B-1
As-Is Activity Diagram
146
B-2
As-Is Sequence Diagram
148
C
To-Be Activity Diagram
154
D
CRC Cards
156
E
To-Be Sequence Diagram
162
F
Databases Design
172
G
UAT Test
176
H
User Manual
178
I
Sample Documents
188
CHAPTER 1
PROJECT OVERVIEW
1.1
Introduction
The Supply Management function of an organization is responsible for various
aspects of acquiring goods and services for any organization. In many organizations,
acquisition or buying of services is called contracting, while that of goods is called
purchasing. Tasks associated with supply management include analyzing spending,
strategic sourcing, obtaining and evaluating quotes from suppliers, negotiating, managing
supplier performance, implementing technologies, processes, policies, and procedures to
support the purchasing process (Supplier Relationship Management or SRM). Supply
management is generally regarded as a systematic business process that includes more
functions than traditional buying, such as coordinating inbound and internal preproduction logistics and managing inventory.
Supply management deals primarily with the oversight and management of
materials and services inputs, management of the suppliers who provide those inputs, and
support of the process of acquiring those inputs. The performance of supply management
2
departments and supply management professionals is commonly measured in terms of
amount of money saved for the organization. However, managing risk is one of the other
critical aspects of supply management; especially the risk of non-availability at the
required time of quality goods and services critical for an organization's survival and
growth.
Besides, many factors, external and internal, wield strong influence on business
organizations and thus conflict with the desired corporate profit objective. The external
factors and the problem of organizational culture and politics are not the main focus of
this study. As it could be accepted, inadequate attention given to factors that directly
affects corporate profit often has indiscernible impact on corporate profit if it is let
loosed. In this study one of such factors which captured the interest of the researcher and
informed this study is improper supplier selection management in small and mediumscale enterprises. It is apparent that many small and medium-scale businesses do not give
pay attention to adequate supplier selection management even though they desire to
maximize their profit. This is evidence given that many organizations in this class of
enterprises do not use supplier selection management software, analyzing and reporting
their inventory status on timely basis only.
In this study the developer proposes an easy-to-use Supplier selection analysis
tools and flexible reporting capabilities that deliver rich access to detailed, consolidated
useful supplier selection as well as raw material stock information. The Management
Information System approach and other related information science theory form the main
theoretical foundation behind the development of this supplier selection management
tool. This tool is not only expected to solve the problem of selecting a supplier, it would
also give the useful, quality and cost-effective and product to the organization.
The case study approach is adopted at PARL Bone Mills in Bangladesh. The
remaining part of the study is divided into six more chapters. The second chapter presents
the Literature Review; the third presents the research Methodology. The Initial Findings,
Analysis and System Design is discussed in chapter four, chapter five discussed about
3
Design Implementation and Testing. In chapter six is Organizational Strategy and finally
in chapter seven we will discuss about Discussion and Conclusion.
1.2
Problem Background
PARL Bone Mills, the case study organization in Bangladesh, is mainly an export
oriented business organization that engages in exporting goods like Crash Bone, Bone
Meal, Bone Grist and Crushed horn and hooves etc. Given the stock varieties required in
exporting foreign countries, the organization necessarily maintains various sources of
supplies. It retails these goods to numerous customers from all works of life. Certainly,
PARL Bone Mills is an export oriented business organization, so they have a number of
buyers all around the world and also the organization need to meet adequate inventory
mix and stock management through selecting a supplier who will provide the best quality
products to achieve customer’s satisfaction and loyalty.
However, selecting a supplier is hardly achieved through manual process. Manual
system has imbedded problem of selecting supplier who will provide a better service for
management. More often than not, these problems can cause the organization to lose its
customers. This happens because a buyer that having a demand on particular product that
an organization has forgotten to replenish can not be a loyal customer. Perhaps, it is hard
to believe that most export oriented business organizations like PARL Bone Mills, under
hyper-competitive environment, still select the suppliers manually despite all the
associated problems. Without doubt, the decline in profit could not be avoided if an
export oriented organization is not be able to decide on a better supplier who will make
available better quality products for the organization to export. Such decline invariably
has a negative impact on gross profit of an organization.
The management often face some problems in tracking the supplier records where
it is done manually. In which case they depend on the bills and the physically count of
items when they want to track out. This in most cases causes stock prediction and order
4
problems, given that the procurement and warehouse officers need to consider and
analyze some important factors such as buying rate, quality of the items, and the demand
for items before they make order. The officers also have some problems in determining
the quantity of the item to be ordered at a certain season where the customer demands
varies from season to season. The officer needs a lot of time to take decision who will be
the best supplier for a particular product before the product is being ordered and
sometimes they receive the supply of product very late. Therefore they fail to maintain
the shipment schedule and the stock prediction is most often done with high level of
uncertainty and sometimes they purchase the product with high cost as they do not have
other choice for meet the shipment on time. In practical sense, this problem will decrease
PARL Bone Mills deal with their buyer as well as their good will.
The proposed system will help the management to choose a useful supplier who
will make available of quality and cost-effective product regarding of each order as per
the organization’s need. This MIS system will be helpful for other export oriented
organization similar trade. This system will show all the previous records regarding all
suppliers, like: the product cost, quality, size, quantity, delivery cost, for each item in
each order. In this case the quality of the product is very important because the
organization PARL Bone Mills will export the product and all the products will go
through a survey process to recognize that the product is really maintaining the export
quality or not. As the organization is doing business for profit, so their main goal is to get
high quality but cost-effective product.
1.3
Problem Statement
a)
How do small and medium-scale export oriented organizations that involve
in collecting raw materials from suppliers as well as exporting goods to
other countries bring their inventory cost to optimum level?
5
b)
How do they keep track of numerous supplier records to collect quality
product in their possession with the aim of avoiding export poor quality
products, overstock or stock-out problem?
c)
How do they keep track of choosing a reliable, cost-effective supplier?
d)
Can
Management
Information
System
enhance
selecting
supplier
management and thus provide means of sales analysis and forecasting?
e)
How can effectiveness of such system be evaluated in order to encourage its
usage?
This study attempts to provide answers to these questions and other related ones.
The researcher intends to use a relevant system development methodology to develop a
Management Information System (MIS) which would enhance selecting supplier
management and control. The tool will be tested practically at PARL Bone Mills, the
medium-scale business organization chosen as a case study.
1.4
Project Objective
The main objective of the study is to design and develop a Management
Information System, which will be enable :
ƒ
To select the best, effective and useful supplier for the management
regarding each order to get quality and cost-effective product to export.
ƒ
To track out all the supplier’s information and their status for the
management.
6
1.5
Project Scope
This project will cover four main scopes as highlighted below:
i.
The analysis will be conducted at PARL Bone Mills.
ii.
The system that will be analyzed is, to select the best supplier on basis of
some certain criteria of their product.
iii.
The developed system will be used by the Management, Accounts
department, Procurement department and also by Warehouse department
iv.
The analysis report includes cost, quality, size, quantity and delivery cost on
different products and demand statistic for each item.
1.6
Importance of project
The useful supplier selection problem remains one of the central barriers to
improving profits and margins for medium-scale organization. Therefore, PARL Bone
Mills as well as other medium-scale organization has similar problem.
By implementing ICT strategies, specifically MIS system, in PARL Bone Mills, it
is hoped that it can bring some effective and efficient improvement to their supplier
management and stock record management. Hence, this project is expected to overcome
the ‘useful supplier selection’ problem for the organization. This supplier selection
management system implies efficient management skills in the organization and the MIS
technique gives some intelligent and expert skills to the organization staff. Some benefits
of the system are :
7
i.
Propose effective decision making strategy for the management to choose
useful supplier.
ii.
Propose easy-to-use supplier record analysis.
iii.
Allow employees with advanced search capabilities that provide quick, easy
access to the supplier information they need, and one-time stock and pricing
entry that provides accurate and timely information throughout the system.
iv.
Generate efficient report and statistic of supplier and raw material records.
v.
Offer better service and improve service to the organization so that they can
improve customer satisfaction by doing perfect shipment.
vi.
Offer a useful stock record so that the organization can retrieve any
information about raw material as per their needs.
vii.
Give the organization a competitive advantage in the market with easy-to-use
supplier record and of course select the right supplier on-time.
viii.
Propose a time constrain Management Information System for the
management.
ix.
Pervade Information and Communication Technology (ICT) concept in the
organization.
1.7
Summary
In this chapter, introduction of the project, project objective, project scope,
problem background and statement of problem background have been discussed. A short
idea of the organization where the project is going to be implemented and why this
project will be valuable for them also pointed out. As currently the organization is doing
their internal organizational work manually, so it is very time consuming and hard job for
them to select the right supplier on-time. By implementing this project successfully to the
organization they will be able to choose the right supplier who is useful for them and this
project will also help them to reduce their misuse of time.
CHAPTER 2
LITERATURE REVIEW
2.1
Introduction
The literature review chapter will focus on the areas that are of interest to the
study. The author will be able to acquire sound and deep knowledge and understanding
on study area. With the knowledge and understanding obtained, the author will be able to
conduct and present the study. The chapter presents a brief introduction and information
to the curious readers and researchers on the area of supplier selection management and
how information system will be able to smooth the progress of such management. The
aim is to broaden the understanding of the details of the uncovered areas in literature
which the study attempts to make a useful contribution. The topics that will be discussed
in this chapter are organized in four main themes:
•
Supplier
•
Inventory
•
Supply Chain Management (SCM)
•
Management Information System (MIS)
9
Figure 2.1: Main topic discussed in Literature Review
10
2.2
Supplier
The term supplier describes the people who supplies raw materials for the
business organization. Supplier is the key component for any export oriented
organization.
2.2.1 Characteristics of useful Supplier
A strategic approach to choosing suppliers can help to understand how own
potential customers weigh up their purchasing decisions. Choosing the right supplier will
depend on a wide range of characteristics of supplier such as:
•
Value for money
•
Quality of product
•
Competitive price
•
On-time and cost-effective delivery of products
•
Reliability
•
Financial solvency
•
Experience
•
Strong service and clear communication.
•
A partnership approach
•
Value for money
It is not just about price. Reliability and quality is the most vital to do business, so
business organization must have to be satisfied for what they are getting from the
supplier. Are they getting the precise levels of reliability, quality and service to obtain the
maximum benefit from what they are paying?
11
•
Quality of product
The quality of the products needs to be consistent - otherwise it will be very
difficult to satisfy the customer.
•
Competitive cost
The supplier must be aware of the product cost comparing with the other
suppliers. The market is always competitive, so if the product cost is higher than other
suppliers that are not considerable for the customer, then supplier will not be able to put
on the product in the market.
•
On-time and cost-effective delivery of products
The most crucial condition for the suppliers to deliver the product on time. They
need to be honest and give the customer plenty of warning if they can not delivery the
product on-time. The delivery cost also has to be cost-effective and competitive with
other suppliers.
•
Reliability
Reliability is very important in the business world. If the suppliers do not give
reliable service, they will also not be able to be settled in business world.
•
Financial solvency
Supplier has to be sufficiently strong cash flow to deliver when the customer need
them to. It is very useful to have confidence that they will not disappear suddenly. Before
the organization start a business relationship, it is always worth credit-checking potential
suppliers.
12
•
Experience
To be a reliable, quality and top supplier, experience is very important. The
supplier should have a history of successfully driving the business and meeting and
exceeding the customer expectations. Experienced supplier will be able to compete the
market practically.
•
Strong service and clear communication
The best suppliers will communicate regularly to the customer to find out what
needs customers have and how they can serve better.
•
A partnership approach
A strong relationship will benefit both sides. The Management wants their
suppliers to acknowledge how important their customer to them, so they make every
effort to provide the best service possible. And the Management more likely to create this
response by showing their supplier how important they are to the business.
2.2.2
Selecting the Supplier:
Why is selecting the right supplier the most important? The obvious answer of
course, is that they can offer the 'correct' product. This would imply that a selection
process has taken place to determine the supplier of the technology. “Why then do some
suppliers claim to always have the 'best' product?” asks Honeywell SA's Mike Emery.
According to Strolling through Securex at the Sandton Convention Centre during
the first week of March 2004, “I was amazed to overhear many of the companies on show
claiming to have the 'best' product, Can you imagine how hard it is to really have the
13
‘best’ product.” says Emery. Therefore to get the ‘best’ product considering all sides
(cost, quality, time, delivery cost, etc.), organization have to select the useful supplier.
2.2.2.1 The Challenge in selecting supplier
According to James L. Bossert,1998, the supplier selection process may involve a
range of inter-related steps:
•
Developing a procurement strategy that the enterprise will adopt to select a
supplier and required information systems products to satisfy the business needs.
•
Developing an evaluation strategy for evaluating suppliers/products.
•
Selecting information systems product(s) that provide the capability to meet the
diversity of requirements defined in the Requirements Specification.
•
Choosing a supplier that has the product and domain experience, combined with
resources that have the project management experience, business understanding
and technical knowledge to deliver successful solutions.
•
Negotiating a contract with the supplier that is acceptable to all parties.
2.2.2.2 Techniques in selecting supplier
According to James L. Bossert,1998, the techniques used during supplier selection
might include:
•
Functionality checklists, which are designed to help organizations confirm the
capabilities of products.
•
Supplier checklists, which are used to validate supplier capabilities.
•
Weighted scoring methodology, which can be useful as a means of helping to
differentiate relevance during functional (and supplier) analysis.
•
Benchmark assessment, which is used to validate solutions offered by suppliers in
14
terms of the functionality and also pre-system acceptance performance tests
(where these can be simulated).
•
Gap analysis, which is a technique that might be useful for identifying
functionality gaps that are either manageable or non-manageable, and may assist
final product determination.
•
Risk analysis, which can be used to help organizations determine the relative risks
associated with proceeding with suppliers/products.
•
Contract negotiation, which involve technique/experience in developing contracts
between purchasers and suppliers.
2.2.2.3 Deliverables
James L. Bossert pointed out the types of deliverables during this process include:
•
Procurement strategy, which defines the process for selecting a supplier and
entering into a contract agreement.
•
Evaluation strategy/plan, which defines the strategy by which the evaluation will
be managed, and the planning associated with the strategy. It will also include the
selection criteria that are to be applied for selection of the supplier/product.
•
Weighted scoring plan, which might be useful for scoring specific requirements
during the supplier/product assessment process.
•
Reference site visit scripts, which define the approach and types of questions for
conducting reference site visits (recommended) or checks.
•
Benchmark plan, which defines how functional (and performance, where
relevant) benchmark assessments will be conducted.
•
Benchmark specifications, which are used to define benchmark test configuration
requirements, business usage scenarios, functionality checklists, and logistical
requirements relating to benchmark assessment.
15
2.2.3
The Psychology of Supplier Relationship
According to James L. Bossert (2000), when dealing with suppliers, the most
important thing people must remember is, “What would I be doing if I was in the
supplier’s place?” This type of thinking will assist the procurement team members in
conducting themselves in a manner beneficial to both companies’ interests.
This has not always been the case. Traditionally the customer/supplier
relationship has not been one of consideration, but of dictation. The customer dictated to
the supplier exactly what the customer wanted. No deviations were accepted. If the
supplier did not want to do business, there were plenty of other suppliers who were
interested. Consequently, supplier relationship is one-sided.
The key element of a partnership can be summarized into an informal code of
ethics. This code was originally developed by the ASQC Vendor –Vendee Technical
Committee. The motivation behind it was the understanding that both the customer and
the supplier have an interest in obtaining the same objective. The 12 elements of the code
follows:
•
Personal behavior
•
All dealings between both quality control/quality assurance functions should be
conducted in a manner to credit the companies and the individuals involved. In contacts
between the quality functions of both the customer and supplier, it is necessary to avoid
compromising relationship.
•
Objectivity
•
Both the customer and the supplier should address the fulfillment of all
16
contractual requirements and objectives. The legal aspects of a contract can not be
ignored, but there also is a moral obligation to achieve a satisfactory end product. It is to
the mutual advantage of both parties that the objective attained in accompanied by a fair
and equitable cost distribution.
•
Product definition
The customer should finish a complete description of the quality characteristics in
writing for the produced item, including minimum workmanship standards. The
customer’s quality organization is morally obligated to ensure that all requirements are
clear, complete, non conflicting and correct. Assistance in the interpretation of
requirements should be readily available to the supplier. (All specifications should be
understood by everyone, and additional information to help clarify the specifications
should be freely given.)
•
Mutual understanding
Direct communication between quality functions should be implemented at the
initiation of all contracts and continue through the life of the contract. Direct
communication assures professional maintenance of the mutual obligation by the
respective quality managements. To allow quality functions to be handled through default
by others will result in product quality degradation and a loss of reputation for the
profession. Allow the quality people to talk quality people. Keep the communications as
direct as possible; avoid all intermediaries.
•
Quality evaluation
It is the customers responsibility to appraise the supplier’s quality performance
fairly and it is the supplier’s right to be aware of this appraisal. The supplier has the
benefit of knowing what the comparative quality position is with the customer, because
this factor predicts the supplier’s future. Common benefits are derived by working
17
together. It is important to commend a supplier when consistent, satisfactory performance
is achieved.
•
Product Quality
Suppliers should honestly and fairly inform customers of the quality status of
deliver items. Delivery implies that contractual.
When there is a problem with a
shipment, notify the customer. Data should be sent with every shipment if that is part of
the contract. If a deviation has been granted, it should be noted on the data sheet.
•
Corrective action
Corrective action should be actively pursued and implemented by both customer
and supplier. The acceptance of this responsibility by both demonstrates good faith in the
contractual relationship as well as quality discipline and technical competence.
Working together to solve problems when they occur saves time and money. It also
fosters the partnership between the two companies.
•
Technical aid
Technical support should be provided by the customer when requested by the
supplier. Care must be exercised because such efforts may confuse the question of
responsibility. Technical support activities must be conducted by mutual respect for the
competence of both the supplier and the customer, in their respective specialties. When
there is a request for technical support, the customer's two options are to provide
someone from their company, or recommend an independent source. This does not mean
that the customer assumes responsibility for the product that the supplier provides. It
simply means that the customer is willing to help the supplier on a specific problem.
18
•
Integrity
Facilities and services should be used by the visiting party only to the degree of
the contractual obligation, or as volunteered by the supplier or customer. Inspection,
laboratory facilities, and equipment must be provided to the extent specified in the
contract. The supplier must permit the customer access to the facilities where the
customer can perform source inspection and/or other associated functions involved with
the assurance of contractual obligations. The supplier should normally permit the
customer to observe inspections or tests and to review the resultant data. The visitor must
not accept gifts, entertainment, or other preferred treatment of any nature, thus
eliminating any unethical behavior by which the level of quality may be compromised.
Do not do anything that could embarrass you or your company.
•
Rewards
Supplier quality management should encourage its purchasing agent to use only
qualified suppliers. Quality management should compile and maintain a current list of
qualified suppliers based on performance. The use of the most qualified suppliers from a
quality control viewpoint should be considered when selecting suppliers, rewarding those
suppliers that consistently produce conforming products.
•
Proprietary information
Both parties should refrain from divulging proprietary information obtained in
confidence. Divulging privileged information violates ethical and moral standards and is
not in the best interest of either party. Betraying a trust is destructive to business relationships.
•
Safeguard of reputation
Both parties should avoid making false, unsupported, or misleading statements.
19
Integrity and professionalism are paramount in every business relationship. There must
be an open, honest relationship established if a partnership is to grow and develop.
Anything less than that works against everything you are trying to accomplish.
2.2.4
Supplier Rating
According to James L. Bossert (1998), Supplier rating has been a basic element of
comprehensive quality programs for many years. Most major organizations have
developed and implemented a form of supplier rating and as a need to know increases;
many more organizations will be creating their own new system.
Maintaining satisfactory supplier performance is essential to all who purchase
goods and services; therefore it is necessary to continuously monitor supplier activities.
Data must be collected and analyze to establish trends and identify areas requiring further
action. In order to be effective, a supplier rating must be an operating function in an
organization.
Although supplier rating is not mentioned, an effective rating system can be the
basis for establishing and measuring supplier performance. Through planned data
collection and analysis, a supplier rating can be an important function in ensuring that
continuous quality improvement is achieved. Supplier rating is more than just a report or
a measure of past performance. It is a major operating system essential to a disciplined
purchase material control program.
Perhaps the best reason for implementing a supplier rating is that it allows a
greater awareness of achieved supplier performance. When integrated with other
operating functions, a supplier rating can serve many purposes ranging from monitoring
quality costs to tracking the timeliness of incoming materials. A strong rating can provide
information necessary to effect change and contribute to the profitability of an
20
organization.
Other than contractual requirements, perhaps the most important reason for
implementing a supplier rating is that it can be effectively used to optimize purchased
material costs. Through analysis of past and current performance, it is possible to
coordinate a planned supplier improvement program to reduce defect costs and advance
toward the goal of on-time receipt of defect-free product.
A comprehensive supplier rating program will provide the information necessary
to plan and achieve the discipline necessary for continuous quality improvement.
2.2.4.1
Objectives of supplier rating
The following objectives identify what can be achieved with a supplier rating.
Objective
Information system
Achievement
The analysis of data to identify opportunities to effect
change.
Measure performance
Evaluated elements are quality, delivery, cost, service,
and compliance.
Source selection
A supplier rating allows customers to make more
intelligent decisions when sourcing new jobs or
considering present jobs for resourcing
Recognition
A supplier rating system provides an objective means
to determine your outstanding suppliers.
Initiate action
If expected results do not come, a supplier rating
provides data on what areas need change and by whom.
Plan activities
Audits,
meetings,
performance
reviews,
and
improvement projects are all activities that can be
assisted with a good supplier rating system.
21
Effective utilization of data that is currently collected,
Data collection
as well as the integration of new data, is accomplished
with a good system.
Table 2.1: Objective of supplier rating
2.2.4.2
Elements of supplier rating system
James L. Bossert (1998), defines there are three elements for any supplier rating system.
• Quality
• Delivery
• Cost
Quality
Quality improvement and defect-free performance imply a relationship between
quality and deficiencies. The absence of reported deficiencies equates with desirable
quality performance, so that the measure of quality is directly associated with whatever
deficiency reporting system you may have in place. Your rating can be only as good as
the data that are available, so if you have incomplete or flawed data, your ability for an
effective rating is hampered.
Some common measurements of quality relate rejections to receipts. Quality
performance can be expressed in many ways: percent defective (for parts or lots), parts
per million, defects per million, parts per billion, and defects per billion.
22
Delivery
Delivery is an item that is becoming more critical as companies move to decrease
their inventories and look at becoming more JIT oriented. Some common considerations
are percent of on-time delivery (as specified by the purchase order), percent of early
deliveries, percent of late deliveries, percent of over order quantity, and percent of under
order quantity.
Cost
A major criterion of supplier evaluation is the cost of doing business. If your
company has a quality cost system in place, then the cost can be incorporated into the
supplier rating and you can have a look at the true cost of each supplier to your business.
This can include items such as scrap, inspection, rework, and return costs.
Other elements that can be included are compliance (how well does the supplier
comply with the specifications?), service (what type of service does the supplier
provide?) technical support (is any available?), response to schedule changes, and pricequoting accuracy.
2.2.4.3 Use of supplier rating
A rating is only as good as the way it is used. In many cases, after the supplier
rating is set up, the training program begins. All expected and potential users must be
trained on what is available, what it means, and how it can be used. This not only
includes the customer's facility, but also the supplier's. Lack of familiarity, or a negative
outlook about the rating can create many roadblocks to current and future use. After this
hurdle is overcome, the supplier rating can be used in the following ways:
23
•
Performance evaluation-ranking
Supplier performance should be ranked in terms of the category that is most
important to you. This ranking can be done in two ways. First, report the suppliers that
have the highest potential for improvement. When gains are made, they should drop off
the list. A second method is to list the best suppliers in descending order. This allows the
customer to quickly determine which suppliers should be getting more business and
identifies candidates for partnerships.
•
Action planning
If a supplier is rated low, some efforts may be desirable to bring it up to
expectations. Based on the data, the customer can determine if the low rating was due to
an unusually bad lot, or a series of lots. What has been done and what still needs to be
done?
•
Meeting with suppliers
Supplier rating is a means of communicating with your suppliers. It creates
another vehicle for dialogue to take place. The sharing of information will be enhanced
because the supplier understands how all suppliers are rated. Objective data is used as
opposed to opinions.
•
Product and process audits
When problems occur, it becomes necessary to perform a special audit. The audits
are functions above and beyond the routine operations and require the allocation of additional resources for a limited period of time. Actions will have to be prioritized to
maximize the use of resources.
24
•
Corrective action program
As in any action-oriented program, the purpose of your rating is to effect change.
When problems occur, many customers expect to identify what corrective action has
taken place to ensure that the problem is fixed. Ideally, the fix is permanent, but if it is
not, the customer can use the corrective action activities as a springboard to reevaluate
the goals and expectations of the supplier partnership and what long term activities must
occur.
•
Supplier recognition
Suppliers the continually demonstrate out-standing overall performance can be
identified and slated for special recognition. (James L. Bossert. (1998))
2.2.5
Supplier certification
According to James L. Bossert, 1998, A certified supplier is one that, after an
extensive investigation is found to provide quality products or services of such a level
that routine inspections are not longer needed. A slight modification to the definition for
the future is : A certified supplier is one that has shown a complete and through
understanding of our needs. In doing so the supplier has set in place a process that has
been investigated and has been found to yield products or services that meet or exceed
our requirements
2.2.5.1 The steps of the certification process:
•
Documentation of the process
•
Selection of suppliers fro the process
25
•
Establish partnership for improvement
•
Perform initial quality systems validation
•
Establish approved suppliers
•
Establish preferred suppliers
•
Review for certification
•
Certify supplier
•
Recognize supplier
•
Maintain certification
2.2.6
Supplier survey
According to James L. Bossert (1998) one of the most critical jobs for the
organization is supplier survey. Organization will want to gather as many facts as
possible. In doing this it is important to remember organization’s goals and any existing
relationship between the supplier and the organization.
Typical question to be answered by survey considering circumstances. Survey
should find out that, if the new supplier is able to provide the quality product the
organization need, the old supplier will be able to continue giving the quality product the
organization need. In the case of problem supplier what must be done so that the problem
supplier can give the quality products the organization needs. Reformed supplier has
really the improvements necessary to give the quality product the organization need.
Every new survey conducted can have its own matrix of goals. Although it may
appear difficult to identify the proper goals of the organization, this is much easier than
trying the goals of the organization that are surveying.
26
2.2.7
Preferred Supplier
Reliable suppliers are likely to be vital to the success of any business. Making the
right decision is essential to business profitability, reputation and the quality of products
could be at stake. The most effective suppliers are those who offer products or services
that match - or exceed - the needs of the business organization. So when looking for
suppliers, it's best to be sure of the business needs and what the business wants to achieve
by buying - rather than simply paying for what suppliers want to sell. Care should be
taken to choose those that not only have the best quality products at reasonable prices, but
also support, their customer, by providing additional services. A main concern is on-time
and cost effective delivery of the products. It is a wise decision to select the supplier who
is more experienced in the field and also having a good-will in market. The best suppliers
also should have an informative catalog containing the latest products available and
perhaps a monthly or bimonthly technical bulletin to keep informed of new techniques
and offerings.
The best suppliers are well aware that their success is only dependent on
customer’s success. As a result, they are very helpful in doing whatever they can to
support their customer. Not only does their business grow but going above and beyond
filling customer’s order encourages. Faithfulness and fosters long-term relationships
critical elements for those companies in business for the long run. So business
organization needs to find suppliers who practice this philosophy.
A preferred supplier is one with whom the organization has a negotiated or bid
agreement which could include price discounts, quality product, delivery arrangements,
customer service requirements, etc.
27
2.3
Inventory
Inventory represents a major investment of capital for most companies. Inventory
ties up money that could be used more productively elsewhere. Thus, effective inventory
management offers the potential for significant cost savings.
2.3.1
Definition
Inventory comprises of goods purchased for resale, raw materials and partly
finished goods purchased for conversion into finished goods for resale, or consumable
stores (Beard, L. H., 1983). The distinguishing feature of stock is the intention to resell
the item in some form or to use it in a short period of time in creating a product. In
Wikipedia encyclopedia, inventory is defined as a list of goods and materials held as
available in stock.
To many small business owners Inventory is one of the more visible and tangible
aspects of doing business (Hedrick, F. D.). Raw materials, goods in process and finished
goods all represented as various forms of inventory. Each type represents money tied up
until the inventory leaves the company as purchased products. Likewise, merchandise
stocks in a retail store contribute to profits only when their sale puts money into the cash
register.
Inventory Turnover is a mathematical determination of the number of times there
has been a complete replacement of inventory stock in a year’s time. This is often
determined on a dollar value basis.
Inventory balances the supply and demand for the goods (Hedrick, F. D.).
Inventory acts as a buffer between critical Supply Chain Interfaces and irons out supply
28
chain system the failures.
2.3.2
Categories of Inventory
It is fairly obvious that the nature of the business has an impact on the type of
stock held. The types of stock held by different sectors are lopsided. There are three
categories of inventory:
•
Raw Material Inventory
•
Work-in-progress Inventory
•
Finished Goods Inventory
In the case of manufacturing and trading business the stock held are those goods
purchased for next shipment. Given the nature of the business there is generally little if
any change between the goods bought by the business and the goods it sells. Its operating
cycle could be seen as shown in figure 2.2.
Purchase
Manufacture
Stock
Shipment
Figure 2.2: Operating cycle of goods in manufacturing business.
In the case of manufacturing company, in order to manufacture goods we need an
input of raw materials, of labor and of other items such as the nuts and bolts needed to
assemble a car or paint and color it. These inputs can and often do occur at multiple
29
points in the production process. Figure 2.3 shows the manufacturing process that
produces the goods.
Input
Raw materials
Process
Labor
Other expenses
Manufacturing
(work in progress)
Output
Finished goods
Figure 2.3: Process that produces the three type of inventory.
2.3.3
Maintain efficient inventory levels
Inventory levels involve operating decisions to achieve efficiency and cost
control. Inventory levels vary by product or service. Some merchandise requires high
inventory levels while others require lower levels. The required inventory level is tied to
the demand for the merchandise. An efficient level minimizes the costs of having too
little or too much inventory. A balance must be maintained. Inventory level can be
affected by product promotions, supplier performance, and delivery logistics.
There are three types of inventories:
•
Fast turnover
Fast turnover products should be stocked at high levels
•
Slow turnover
Slow turnover inventory should be stocked at low levels.
30
•
Seasonal inventory
Seasonal inventory should be stocked at levels that will enable the cooperative to meet
demand but not be left with excess inventory at the end of the season. It determined by a
fixed period when products are in high demand.
2.3.4
Order efficiency
Ordering is a major part of inventory management. Efficient ordering keeps
inventory levels at correct levels. Inventory should be purchased in an organized manner.
Inventory levels and quantities demanded must be carefully monitored. Selected
individuals should be responsible for ordering inventory. Cooperatives with a broad line
of merchandise may select individuals to be responsible for different classes of inventory.
There are two major variable costs associated with ordering a quantity of inventory:
•
Order processing cost
•
Cost of maintaining the inventory
A cooperative might place a few large quantity orders each year or many small
ones based on certain factors. Placing a few orders will lower order processing costs, but
increase inventory maintenance costs because the average inventory level will be large.
Placing many orders will increase order processing costs, but lower inventory
maintenance costs because the average inventory level will be small. The next example
shows how order processing and maintenance costs vary by order size for a highly
demanded item.
31
2.3.5
Make physical inventory counts
Making physical inventory counts is a basic but critical inventory management
procedure. Regular counts control pilferage, decrease the potential for excess and
redundant inventory, keep inventory insurance premiums at correct levels, and provide
information on the cooperative’s storage conditions. Counts also identify specific
shortage and problem areas so management can then take corrective measures.
Procedures for effective physical inventory counts include:
•
Count on a regularly scheduled basis
•
Count accurately
•
Count in a coordinated, organized manner
•
Count using easily understood inventory
•
forms
•
Report physical levels accurately for accounting
All employees involved in the process must recognize the importance of taking a
physical inventory and procedures to follow.
2.3.6 Handle inventory like dollars
Inventory is a major portion of current assets. They are short-term funds the
cooperative has invested to earn returns. Therefore, inventories are comparable to actual
dollars and should be handled as such. When merchandise is stolen or damaged due to
improper handling, money is lost. Types of shrinkage and methods for handling
merchandise should be well understood.
32
2.4
Supply Chain Management
Supply Chain Management is an organization of the overall business processes to
enable the profitable transformation of raw materials or products into finished
goods and their timely distribution to meet customer demand (Laudon, K. C. and
Laudon, J. P. (2004)).
The term supply chain management (SCM) describe the integrated management
of the flow of materials, information, and funds across the entire supply chain, from
suppliers to component producers to final assemblers to distribution (warehouses and
retailers), and ultimately to the consumer. This integration includes supplier, subcontract
suppliers, in-house production process, shipping, transportation, distribution, warehouse,
and the end customer. In fact, it is the complex network of relationships that
organizations maintain with trading partners to source, manufacture and deliver products.
The traditional supply chain has changed significantly over the last. It has gone
from a set of business process focused primarily on the internal flow of materials to an
integrated inter organizational system involving everything from procurement of the raw
materials to recycling the used finish product. Through use of enterprise system, the
focus of supply chain has expanded from a material flow to both materials and
information flow. In addition, this new supply chains extend to both internal and external
supply chain processes.
Innovative supply chain models include concepts such as vendor-managed
inventory, strategic vendor alliances, channel assembly, and just-in-time delivery. Even
though the basic supply chain concepts is the same for all business organizations,
application may differ markedly.
33
2.4.1
Components of Supply Chain Management
Ben Worthen, 2003 describes the following are five basic components of SCM.
Plan – This is the strategic portion of SCM. You need a strategy for managing all
the resources that go toward meeting customer demand for your product or service. A big
piece of planning is developing a set of metrics to monitor the supply chain so that it is
efficient, costs less and delivers high quality and value to customers.
Source – Choose the suppliers that will deliver the goods and services you need
to create your product. Develop a set of pricing, delivery and payment processes with
suppliers and create metrics for monitoring and improving the relationships. And put
together processes for managing the inventory of goods and services you receive from
suppliers, including receiving shipments, verifying them, transferring them to your
manufacturing facilities and authorizing supplier payments.
Make – This is the manufacturing step. Schedule the activities necessary for
production, testing, packaging and preparation for delivery. As the most metric-intensive
portion of the supply chain, measure quality levels, production output and worker
productivity.
Deliver – This is the part that many insiders refer to as logistics. Coordinate the
receipt of orders from customers, develop a network of warehouses, pick carriers to get
products to customers and set up an invoicing system to receive payments.
Return – The problem part of the supply chain. Create a network for receiving
defective and excess products back from customers and supporting customers who have
problems with delivered products.
34
2.4.2
Planning of Supply Chain Management
Supply chain planning
improve forecast
accuracy
demand forecasting
inventory simulation
optimize production
scheduling
distribution planning
reduce inventory costs
transportation planning
decrease cycle times
manufacturing planning
reduce transportation
costs
order commitment
improve customer
service
Figure 2.4: SCM Planning
In Supply Chain Management, some Supply Chain Planning phases or
components are there to control the Supply Chain Management system. The Phases are:
•
Demand Forecasting: This planning phase describes how to measure the demand
of goods in the market. It is necessary to do the measurement in three are:
1. What was the demand of product in the past
2. What is the demand of product in present
3. What will be the demand of product in the future
•
Inventory Simulation: Every company or organization need to measure the stock
when they get any order of the product. They need to make a plan of
1. How much is the stock of the stock
35
2. How much they will buy from the supplier
3. How much they need to manufacture of the product
•
Distribution Planning: In this phase the organization need to plan for the
distribution of goods to the distributor. They need to choose
1. The number of distributors
2. The right distributors
3. How to distribute the product to the distributors
•
Transportation Planning: This is very important planning phase for any
organization because, cost is also related to this phase. If the organization does not plan
properly for the transportation of the product from
1. The supplier to the manufacturer and
2. The manufacturer to the distributor then there may cause some waste of cash.
•
Manufacturing Planning: This planning phase is the largest phase of Supply
Chain Planning of any organization. They must have
1. Stock available and how much need to produce
2. Worker’s work plan
3. Machine Cost
4. Machine life cycle
5. Electricity, Gas, water supply for manufacturing the product etc.
•
Order Commitment: as soon as the organization gets the order from the
customer, they have to make sure the customer to deliver the product in time.
•
Improve Forecast Accuracy: Organization need to understand the customer
needs and supply and satisfy then with the right product right time.
36
•
Optimize Production Scheduling: Another cost effective plan is to optimize the
schedule of production. Organization should focus on
•
1. How long the machine will run for production ( 24 hrs or lees)
2. How many workers will work for the run time.
•
Reduce Inventory Cost: every organization has a store house for stock the
product. So they need to sell the product before they manufacture more products.
Because, if the store house is full and they need to produce more products, they have to
have another store house to stock the lot. That is cost ineffectual.
•
Decrease Cycle time: To plan to reduce the time for product flow is important. It
means organization need to reduce product flow from
1. Supplier to Manufacturer
2. Manufacturer to Customer
•
Reduce Transportation Cost: Need to make plan to transport the product, so
that, it can be cost effective. What kind of transportation they will use to carry the
product.
•
Improve Customer Service: In my point of view, this is the most important part
of planning of Supply Chain Management.
1. How an organization can meet customer need
2. What is their steps to satisfy the customer
3. What is their steps to catch new customer
37
2.4.3
Organizational study for SCM
supply chain execution
ORDER ENTRY
& PROCESSING
CAPACITY
PLANNING
ORDER PLANNING
FULFILLMENT
PLANNING
PRODUCTION
INVENTORY
AVAILABILITY
ORDER
CONFIRMATION
FORECASTING
REPLENISHMENT
PRODUCTION
SCHEDULING
MPS/SOURCING
DISTRIBUTION
SCHEDULING
PICK & LOAD
Figure 2.5
SCHEDULE
DISTRIBUTION
DELIVERY
SCM Execution
The main processes of the executions are:
•
Order entry and processing
•
Order confirmation
•
Fulfillment planning
•
Capacity planning
•
Forecasting
•
MPS/Sourcing
With that the organization will able to plan themselves like,
•
Inventory Planning
•
Production Scheduling
CUSTOMER
SERVICE
38
•
Distribution Scheduling
•
And finally,
•
Pick and Load
•
Schedule Delivery
•
Customer Service
Example:
PARL Bone Mills is a totally export oriented Company. It has own factory
situated in Shambagath, Mongla Highway road. The factory is established with the aim to
produce quality Crushed Bones from animal bones for export purpose. PARL Bone Mills
is proud to state that so far, 100% of its produce is being exported. From the very
beginning of the establishment the PARL Bone Mills is producing Crushed Bones, Bone
Grist and Bone Meal. But to current export demand it added Crushed Horn & Hooves to
the plant. PARL Bone Mills is exporting all the products to Japan and Germany.
PARL Bone Mills has a strong production team. They are highly innovated to produce
the best quality of products. PARL Bone Mills has established its head office in Dhaka to
look after the sales, sales promotion and explore new markets for the export of their
products.
So when the company gets any order from the buyer, as soon as they planned to
outsource the raw materials from the suppliers and plan for the production with time. And
also they fixed up the packing scheduling and transportation for local suppliers and
ultimate to buyer by ship. They have to also plan for the cnf agent and other agents like
surveyors.
So, here they are trying to adopt proper supply chain management as because to
fulfill the buyer commitments as well satisfy them with which is the company’s ultimate
goal.
39
2.4.4
Some emerging technologies of Supply Chain Management
Ben Worthen, 2003 states two main impacts of SCM:
Private Sector
•
Supply chain have demonstrated superior customer responsiveness at about half
the cost
•
Supply chain costs approach 75% of an organization’s total operating budget
•
This has reduces logistics costs
•
Improves the flow of materials (form end user perspective)
Public Sector
•
Play a critical role in optimizing logistics support and in improving management
of secondary inventory
•
Secondary inventory can be expensive items (hydraulic pumps and navigational
computers that can be fixed and used again), spare parts commodities
(subsistence, medical material, clothing)
•
Benefits of SCM
•
Improved delivery performance
•
Greater productivity and lower costs
•
Reduced inventory throughout the chain
•
Improved forecasting precision
•
Fewer suppliers and shorter planning cycles
•
Improved quality and products that are more technologically advanced
•
Enhanced inter-operational communications and cooperation
•
Shortened repair times and enhanced equipment readiness
•
More reliable financial information
40
2.4.6
Conclusion
Supply chain management is an exploding field, both in research and in practice.
Major international consulting firms have developed large practices in the supply chain
field, and the number of research papers in the field is growing rapidly.
2.5
Management Information System
2.5.1
Definition
Before define explain management information systems, the terms systems,
information, and management must briefly be defined. A system is a combination or
arrangement of parts to form an integrated whole. A system includes an orderly
arrangement according to some common principles or rules. A system is a plan or method
of doing something.
The study of systems is not new. The Egyptian architects who built the pyramids
relied on a system of measurements for construction of the pyramids. Phoenician
astronomers studied the system of the stars and predicted future star positions. The
development of a set of standards and procedures, or even a theory of the universe, is as
old as history itself. People have always sought to find relationships for what is seen or
heard or thought about.
A system is a scientific method of inquiry, that is, observation, the formulation of
an idea, the testing of that idea, and the application of the results. The scientific method
41
of problem solving is systems analysis in its broadest sense. Data are facts and figures.
However, data have no value until they are compiled into a system and can provide
information for decision making.
Information is what is used in the act of informing or the state of being informed.
Information includes knowledge acquired by some means. In the 1960s and 70s, it
became necessary to formalize an educational approach to systems for business so that
individuals and work groups and businesses who crossed boundaries in the various
operations of business could have appropriate information. Technical developments in
computers and data processing and new theories of systems analysis made it possible to
computerize systems. Much of this computerization of systems was an out growth of
basic research by the federal government.
Management is usually defined as planning, organizing, directing, and controlling
the business operation. This definition, which evolved from the work of Henri Fayol in
the early 1900s, defines what a manager does, but it is probably more appropriate to
define what management is rather than what management does. Management is the
process of allocating an organization's inputs, including human and economic resources,
by planning, organizing, directing, and controlling for the purpose of producing goods or
services desired by customers so that organizational objectives are accomplished. If
management has knowledge of the planning, organizing, directing, and controlling of the
business, its decisions can be made on the basis of facts, and decisions are more accurate
and timely as a result.
Management information systems are those systems that allow managers to make
decisions for the successful operation of businesses. Management information systems
consist of computer resources, people, and procedures used in the modern business
enterprise. The term MIS stands for management information systems. MIS also refers to
the organization that develops and maintains most or all of the computer systems in the
enterprise so that managers can make decisions. The goal of the MIS organization is to
deliver information systems to the various levels of corporate managers. MIS
42
professionals create and support the computer system throughout the company. Trained
and educated to work with corporate computer systems, these professionals are
responsible in some way for nearly all of the computers, from the largest mainframe to
the desktop and portable PCs.
2.5.2
Background of Management Information System
According to Laudon, K.C. and Laudon, J.P. (2004), A management information
system (MIS) is a system or process that provides the information necessary to manage
an organization effectively. MIS and the information it generates are generally considered
essential components of prudent and reasonable business decisions. MIS should have a
clearly defined framework of guidelines, policies or practices, standards, and procedures
for the organization. These should be followed throughout the institution in the
development, maintenance, and use of all MIS. MIS is viewed and used at many levels by
management. It should be supportive of the institution's longer term strategic goals and
objectives. To the other extreme it is also those everyday financial accounting systems
that are used to ensure basic control is maintained over financial recordkeeping activities.
Financial accounting systems and subsystems are just one type of institutional MIS.
Financial accounting systems are an important functional element or part of the total MIS
structure. However, they are more narrowly focused on the internal balancing of an
institution's books to the general ledger and other financial accounting subsystems. For
example, accrual adjustments, reconciling and correcting entries used to reconcile the
financial systems to the general ledger are not always immediately entered into other MIS
systems. Accordingly, although MIS and accounting reconcilement totals for related
listings and activities should be similar, they may not necessarily balance.
43
An institution's MIS should be designed to achieve the following goals:
• Enhance communication among employees.
• Deliver complex material throughout the institution.
• Provide an objective system for recording information.
• Reduce expenses related to labor-intensive manual activities.
• Support the organization's strategic goals and direction.
Because MIS supplies decision makers with facts, it supports and enhances the
overall decision making process. MIS also enhances job performance throughout an
institution. At the most senior levels, it provides the data and information to help the
board and management make strategic decisions. At other levels, MIS provides the means
through which the institution's activities are monitored and information is distributed to
management, employees, and customers. Effective MIS should ensure the appropriate
presentation formats and time frames required by operations and senior management are
met. MIS can be maintained and developed by either manual or automated systems or a
combination of both. It should always be sufficient to meet an institution's unique
business goals and objectives. The effective deliveries of an institution's products and
services are supported by the MIS. These systems should be accessible and useable at all
appropriate levels of the organization. MIS is a critical component of the institution's
overall risk management strategy. MIS supports management's ability to perform such
reviews. MIS should be used to recognize, monitor, measure, limit, and manage risks.
Risk management involves four main elements:
• Policies or practices.
• Operational processes.
• Staff and management.
• Feedback devices.
Frequently, operational processes and feedback devices are intertwined and
cannot easily be viewed separately. The most efficient and useable MIS should be both
44
operational and informational. As such, management can use MIS to measure
performance, manage resources, and help an institution comply with regulatory
requirements. One example of this would be the managing and reporting of loans to
insiders. MIS can also be used by management to provide feedback on the effectiveness
of risk controls. Controls are developed to support the proper management of risk through
the institution's policies or practices, operational processes, and the assignment of duties
and responsibilities to staff and managers.
Technology advances have increased both the availability and volume of
information management and the directors have available for both planning and decision
making. Correspondingly, technology also increases the potential for inaccurate reporting
and flawed decision making. Because data can be extracted from many financial and
transaction systems, appropriate control procedures must be set up to ensure that
information is correct and relevant. In addition, since MIS often originates from multiple
equipment platforms including mainframes, minicomputers, and microcomputers,
controls must ensure that systems on smaller computers have processing controls that are
as well defined and as effective as those commonly found on the traditionally larger
mainframe systems.
All institutions must set up a framework of sound fundamental principles that
identify risk, establish controls, and provide for effective MIS review and monitoring
systems throughout the organization. Commonly, an organization may choose to establish
and express these sound principles in writing.
2.5.3
Types of MIS
According to Laudon, K.C. and Laudon, J.P. (2004), Management information
systems can be used as a support to managers to provide a competitive advantage. The
system must support the goals of the organization. Most organizations are structured
45
along functional lines, and the typical systems are identified as follows:
a. Accounting management information systems:
All accounting reports are shared by all levels of accounting managers.
b. Financial management information systems:
The financial management information system provides financial information to
all financial managers within an organization including the chief financial officer. The
chief financial officer analyzes historical and current financial activity, projects future
financial needs, and monitors and controls the use of funds over time using the
information developed by the MIS department.
c. Manufacturing management information systems:
More than any functional area, operations have been impacted by great advances
in technology. As a result, manufacturing operations have changed. For instance,
inventories are provided just in time so that great amounts of money are not spent for
warehousing huge inventories. In some instances, raw materials are even processed on
railroad cars waiting to be sent directly to the factory. Thus there is no need for
warehousing.
d. Marketing management information systems:
A marketing management information system supports managerial activity in the
area of product development, distribution, pricing decisions, promotional effectiveness,
and sales forecasting. More than any other functional areas, marketing systems rely on
external sources of data. These sources include competition and customers.
46
e. Human resources management information systems:
Human resources management information systems are concerned with activities
related to workers, managers, and other individuals employed by the organization.
Because the personnel function relates to all other areas in business, the human resources
management information system plays a valuable role in ensuring organizational success.
Activities performed by the human resources management information systems include,
work-force analysis and planning, hiring, training, and job assignments.
The above are examples of the major management information systems. There
may be other management information systems if the company is identified by different
functional areas.
2.5.4 Five major elements for MIS
Leonard, K.J., Mercer, K. (2000), to function effectively as an interacting,
interrelated, and interdependent feedback tool for management and staff, MIS must be
"useable." The five elements of a useable MIS system are: timeliness, accuracy,
consistency, completeness, and relevance. The usefulness of MIS is hindered whenever
one or more of these elements are compromised.
a. Timeliness
To simplify prompt decision making, an institution's MIS should be capable
of providing and distributing current information to appropriate users. Information
systems should be designed to expedite reporting of information. The system
should be able to quickly collect and edit data, summarize results, and be able to
adjust and correct errors promptly.
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b. Accuracy
A sound system of automated and manual internal controls must exist
throughout all information systems processing activities. Information should
receive appropriate editing, balancing, and internal control checks. A
comprehensive internal and external audit program should be employed to ensure
the adequacy of internal controls.
c. Consistency
To be reliable, data should be processed and compiled consistently and
uniformly. Variations in how data is collected and reported can distort information
and trend analysis. In addition, because data collection and reporting processes
will change over time, management must establish sound procedures to allow for
systems changes. These procedures should be well defined and documented,
clearly communicated to appropriate employees, and should include an effective
monitoring system.
d. Completeness
Decision makers need complete and pertinent information in a summarized
form. Reports should be designed to eliminate clutter and voluminous detail,
thereby avoiding "information overload."
e. Relevance
Information provided to management must be relevant. Information that is
inappropriate, unnecessary, or too detailed for effective decision making has no
value. MIS must be appropriate to support the management level using it. The
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relevance and level of detail provided through MIS systems directly correlate to
what is needed by the board of directors, executive management, departmental or
area mid-level managers, etc. in the performance of their jobs.
Timeliness
Accuracy Consistency Complete
ness
Relevance
Figure 2.6 : Five major elements in MIS
2.5.5
Classification of MIS
1. Report Generation: To generate reports-for example, financial statements,
inventory status reports, or performance reports needed for routine or non-routine
purposes.
2. Simulation: To answer what-if questions asked by management. For example,
questions such as "What would happen to cash flow if the company changes its credit
term for its customers?" can be answered by MIS. This type of MIS can be called
Simulation.
3. Decision Support System: To support decision making. This type of MIS is
appropriately called Decision Support System (DSS). DSS attempts to integrate the
decision maker, the data base, and the quantitative models being used.
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2.5.6
Steps in developing Management Information System
According to Rea, C., Rea, D. (2002), MIS managers are in charge of the systems
development operations for their firm. Systems development requires few stages when
developing a system for any phase of the organization:
These steps are more appropriate for a computer based MIS
a. Preliminary Investigation
In this phase, the systems team must investigate the initial problem by
determining what the problem is and developing a feasibility study for management to
review. The agency needs to critically assess its current system in order to justify the cost
and time involved before deciding on having a new MIS. The facilitator needs to clarify
the MIS need not always involve computers. However, if there are computers the work
gets accelerated.
b. Requirements Analysis
This phase identifies the requirements for the systems. It includes the systems
analysis, the user requirements, necessary hardware and software, and a conceptual
design for the system. Top management then reviews the systems analysis and design.
The methods and means of ascertaining the information needs to be addressed by MIS.
Further, the mechanisms for gathering information from primary and secondary sources
are to be determined by agencies. A critical factor is ascertaining MIS needs of primary
and secondary users.
c. System Design
System Design involves the development of the systems. This involves
developing technical support and technical specifications, reviewing users' procedures
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control, designing the system, testing the system, and providing user training for the
system. At this time, management again reviews and decides on whether to implement
the system. The facilitator explains basics of a MIS system elucidating the inputs, the
processing and the outputs. While inputs include information provided by front-line
workers, the outputs could be various types of reports, including those sent periodically
to founders. The procedures define how and in what format the information will be
inputted and by whom and at what intervals. The storage could be manual or electronic or
both. Design specifies the operational parameters at a drawing board stage. One of the
inputs for MIS could be information from a client database.
d. System Implementation
System Implementation is how the new system is converted from the old system,
and how the new system is implemented and then refined. There must then be ongoing
maintenance and reevaluation of the system to see if it continues to meet the needs of the
business.
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Structure/Process
Input
Stuff
Contraceptives
Money
Result
Planning
Output
Contraceptives
distributed
IUDs inserted
Management
Information
System
Identifying
Collecting
Processing
Reporting
Monitoring
Figure 2.7 : Steps in developing MIS
Impact
Evaluating
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e. Other stages
It needs to be specified that these steps need to be tailored to one’s own situation.
In the acquisition stage, hardware is procured after appraisals and cost analysis. Draw
attention to the need to ensure compatibility between what is being acquired and what is
already available within the agency. The implementation step is a crucial one consuming
considerable amount of time in MIS development. Here the application development is
done customized to the agency’s needs. The procedure and user manuals are developed
and personnel are oriented in using MIS. The software is installed once it is tested and
debugged.
2.5.7
Benefits of MIS in Organization
Investing in information systems can pay off for a company in many ways.
Figure: shows the organization will have both planning and operational report.
1.
MIS investment can support a core competency.
2.
It can enhance distribution channel management.
3.
Such an IT investment can help build brand equity.
4.
IT investment can boost production processes. Information systems allow
company flexibility in its output level.
5.
Implementing IT experience can leverage learning curve advantages.
6.
IT investment can impact mass customization production processes.
7.
Leverage IT investment in computer aided design.
8.
It can mean expanded E-commerce.
9.
Information systems leverage stability.
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Figure 2.8 : MIS process report
2.5.8
User Interface for MIS
According to Laudon, K.C. and Laudon, J.P. (2004), The design of the user
interface requires consideration of various psychological aspects of human behavior. This
part discusses the psychological effects of interface components such as color and visual
objects. Other aspects which must be considered are the different levels of proficiency
users have. Also an interface must be built to suit the system for which it was developed;
it should not add complication to the achievement of simple tasks since these impacts
negatively on users.
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2.5.8.1 Types of User Interfaces
The major types of user interfaces are:
1. Command-driven interfaces
2. Menu-driven interfaces
3. Direct manipulation interfaces (DMI)
4. Special purpose interfaces.
i.) Command-driven interfaces usually require the user to enter an explicit command
which is then interpreted and executed by the system. The command must conform to the
syntax rules defined by the system.
ii.) Menu-driven interfaces provide the user with a list of options and a simple method
of selecting between them. Such a method may involve entering a single letter or a
number which represents the option. Examples of various types of menus include bar
menus and pull-down menus.
iii.) Direct manipulation interfaces (DMIs) presents users with a model of their
information space and users can manipulate their information by direct action. Since
these types of interfaces manipulate information by direct action, it is not necessary to
issue explicit commands to modify information. The Graphical User Interface (GUI) is
the most popular implementation of a DMI. This type of interface makes use of visual
objects to implement its model and the user can manipulate these objects via a mouse or
another pointing device. User Interface Management Systems (UIMS) are implemented
mainly as GUIs so that the interface governs the entire system and not just a single
application. GUI's are further discussed in section 4.3.3 later in this report.
iv.) Special purpose interfaces are those which are used to control an embedded
computer system (for example, an automatic bank machine). Such interfaces also control
systems which combine the use of a general-purpose computer with special hardware and
software for implementing the user interface.
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2.5.8.2 Methods Used in Formulating the User Interface Design
There have been generally been two approaches in formulating the usability
requirements or the tasks which the user interface is expected to perform. These are:
1. The Methodological approach
2. The Training approach
1. Methodological approach
This approach emphasizes the use of good methods or tools in the design of the user
interface. This includes the use of prototyping tools, iterative design techniques and
empirical testing.
a. User Interface Prototyping
User interface prototyping involves the simulation of the proposed screen layouts and
system responses before the actual implementation. It is usually performed early in the
design process and is done regularly. This reduces uncertainty and risk regarding
interface performance and ease-of-use. This technique is primarily used in the design of
interfaces for custom-made applications. Initially, in the design phase of the system
development life cycle, rudimentary prototypes produced on word processors can be
used, whereas subsequent prototypes could become progressively closer to the final
product. Final implementation of the user interface occurs late in the development cycle
so that it can receive the full benefit of the prototyping process.
User interface prototypes should display the proposed screens in the standard
sequence in which they will appear. This is particularly effective for menu-driven
interfaces and GUIs. If the interface is operator-driven, the prototype must also accept
input from the user and simulate the appropriate functions when they are selected by the
user. Refinement of the prototype depends on the usability problems encountered by the
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end-users. Based on feedback from the user, the prototype may be modified, totally redesigned or accepted.
The tools which are used in user interface prototyping can either be specialized or
general-purpose. The following are some of these tools:
b. General purpose tools:
i. Fourth-generation languages - These languages are used in conjunction with
Database Management Systems (DBMSs) which have screen and application
generators. Hence, they can be used to build a small-scale version of the actual
application with interactive screens and executable programs. Examples of
Fourth-generation languages include Foxpro and Paradox.
ii. Presentation tools - These can be used to demonstrate the successive stages in a
dialog between the system and the user. An example of such a tool is Aldus
Presentation.
iii. Standard applications - General purpose software such as word-processors and
spreadsheets can also serve as prototyping tools. Word-processors with macro and
hyper-textual capabilities can effectively simulate a user interface. Any package
such as spreadsheets which can be programmed using macros, or some other type
of pre-defined language, can produce interactive prototypes.
c.
Specialized tools
There are specialized development aids which are designed specifically for user
interface prototyping. Examples of such tools are Proto Screens and ADEPT (Advanced
Design Environment for Prototyping with Task Models). These tools usually generate the
screen layouts, interface components and dialogues based on characteristics specified by
the designer. For example, ADEPT uses abstract platform-independent models which
provide the designer with a high-level specification of the interactions required between
the user and the system, to perform the proposed tasks. The designer can then edit these
models and translate them into 'concrete' models which contain detail-level descriptions
57
of the interface objects, their behavior and the screen layout. These models can then be
implemented on any GUI platform.
Prototypes are usually discarded once they are no longer needed. However, if a
specialized tool is used to create the prototype, it may be re-used in the actual
implementation.
d.
Iterative design
Iterative design techniques involve the production of components of the entire
system, in small increments on a regular basis. Therefore small parts are of the entire
system may be delivered every two to four weeks. This means that the user interface for
each of these components must be repeatedly improved until the final iteration is
achieved. Like prototyping, iterative design depends on feedback from the user when
successive versions of the interface are to be formulated. When using iterative design
methodology, these are some of the issues to be considered:
i. Recognize the usability problems of the interface based on feedback.
ii. Once a problem is identified, the interface designer must make changes to correct
it. The rationale for the changes should be explicit and should be recorded to form
an audit trail. This prevents future changes from sacrificing major usability
principles of the interface for a relatively minor gain.
iii. The quality of the interfaces produced from successive iterations depends on the
quality of the original. Thus iterative design may only improve problems in a
limited range. The better the design to start with, the better the results after
iterations.
Even though some of the tools used in prototyping are also used in iterative
development, there is an essential difference between these two methods with respect to
the user interface. A prototype of a user interface is developed with the intention of
discarding it once changes are to be made. However, iterative development involves
repeatedly improving the actual user interface until a satisfactory design is achieved.
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e.
Usability Testing
This type of testing is used in conjunction with user interface prototyping and
iterative design techniques. Basically, it is the evaluation of the interface based on results
of experiments involving feedback from the test-users. There are two basic forms of
usability testing:
i. Testing of a completed user interface to determine whether or not the usability
requirements for the interface have been achieved. This involves quantitative
measurement.
ii. The evaluation of an interface which is still in the process of being designed. The
objective of this evaluation is to determine which parts of the interface work
properly and which parts have not met usability requirements.
Usability testing may be conducted via several methods. For example, observation of
users working on a set of standard tasks, the use of attitude questionnaires and the use of
automatic computer detection and logging of the users' actions. From these tests, a list of
the usability problems encountered is produced. These problems are then categorized by
their nature and frequency of occurrence. The impact of these problems on userproductivity and satisfaction is determined. Based on these attributes, the problems are
prioritized and those with the highest priority are solved in the next iteration or prototype.
In some cases solving a problem for one user may actually create unforeseen problems
for another. In such cases, a compromise is necessary.
2.
Training Approach
This approach to user interface design relies on the training and knowledge
possessed by the designer. Emphasis is placed on the formulation of a good interface
design through the expertise of the person responsible for designing the interface. This
training may include various fields such as educational psychology, instructional design,
and ergonomics (the scientific study of human comfort). Traditionally, user interfaces
have been designed by specialists in the area of computer science. However, at present,
59
the increasing use of professionals trained in human factors, shows that a fairly diverse
sub-set of knowledge is necessary for a good interface design. This fact has been
recognized by software industry leaders such as Microsoft who now employ
psychologists in the design of their user-interfaces.
2.5.8.3 General Principles of Good User Interface Design
User interface design must take into account the needs, experience and
capabilities of the user. User interfaces should be designed so that useful interaction can
be developed between the user and the system. The interface must be user friendly and
must support the user through every stage of interaction. This can be accomplished by
allowing users to develop a conceptual model of how an application should work. The
user interface should confirm the conceptual model by providing the outcome users
expect for any action. This occurs only when the application model is the same as the
users' conceptual model.
Since there are different types of user interfaces, different guidelines will apply
specifically to each design. There are however some general principles which are
applicable to all user interface designs and they are listed as follows:
1. The interface should be user driven
2. The interface should be consistent
3. The interface should avoid modes
4. The interface should be transparent
5. The interface should include error recovery mechanisms
6. The interface should incorporate some form of user guidance
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2.5.9
Different level of users in Information System
According to Laudon, K.C. and Laudon, J.P. (2004), The backbone of this project
is that all types of information systems must be constructed in a way that they can satisfy
different users. For this, they must have different usability, characteristics, determined by
the users need and expectation. We consider that one of the key factors to be considered
when dealing with the usability is the fact that people, do not think of computer systems,
applications and user interface in the same way; they have different conceptual models of
systems. Furthermore, as users interact with various applications, their perception about
the system changes over time.
Mainly the there are three levels of user in MIS
1. Operational Level
2. Managerial Level
3. Strategic Level
So, in order to design a friendly and effective interface, focusing on usability, the
process of software development must be “user centered”; the interface must be designed
bearing in mind the need to attend to the user’s necessities. So to be friendly, the interface
must match the conceptual model of each user.
If system development is user centered, usability probably will be obtained,
productivity can be improved, better designs can be made, risk of costly design errors can
be reduced, effort and development time can be shorten, and as result, the system
developed will be more competitive and satisfy better the customer need and expectation.
Designing user-centered systems is essential to assure the usability of a system, that is, to
design an application that can really be used by different groups of people, it is necessary
to describe how people perform their tasks, what they think about their work environment
and their limitations
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2.5.9.1 User Model
It is essential that all users feel comfortable and encouraged to use applications;
communication between them must be friendly. Since human beings differ greatly and
people are continually undergoing change, the systems must be capable of adapting to
different users. In order to achieve this, human and domain factors (problem
comprehension) must be studied. Independent of which type of system we are building,
the final user must always be the main focus of the designer. To create a product that can
really be used by a group of people, it is necessary to identify and understand the group.
An interface may be friendly to a particular group but not so to another. So it is
mandatory to identify, analyze and understand the several groups of potential users, in
order to discover user characteristics, their tasks and the environment for which the
system is being designed.
The main 3 tasks in the project are:
1. Collect data from different location
2. Gain insight into information need and accuracy of data.
3. To perform multi task analyses.
For the different level of user of the system, the following user model variable is
identified.
Objective: the user’s objective when using an application.
• Category of the user (strategic, operational, managerial)
• Education: Background of a person.
• Function: Position at work
• Age
• Geographical Location: geographical location of the person’s home.
• Time Behavior: how people deal with time when performing their tasks. People may
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be Monochromic or Polychromic. Monochromic people do one thing at a time while the
polychromic may do several things simultaneously.
• Computer Interaction Knowledge: the user’s specific knowledge about computer
systems and the application domain.
• Tolerance with Uncertainty: refers to how the user deals with unknown situations and
mistakes.
• Psychological Factors: Psychological factors that can influence the performance of a
user when using the system.
2.5.10 Presented Model for different users
The framework for object-oriented applications introduces promising technology
for the refinement of software design and implementation, reducing cost and improving
quality. Originally, object-oriented technology focused on framework as a software
component. But framework is more customizable than components and has more
complex interfacing. Being more powerful, it reduces the efforts required developing
applications that can be customized.
Frameworks offer standard interfaces that allow the reuse of existing components,
that is, they supply components with a reusable context, providing a standard way for
components to treat errors, change data and call operations in each one.
The base of frameworks consists of a library of classes. To construct such a
library, it is necessary to find proper abstractions, called abstract classes, for concrete
classes. A framework generally includes concrete subclasses that can be used
immediately and they provide the default behavior and implementation of the abstract
classes. The abstract classes specify the execution flux and can be specialized by means
of subclasses. The applications which development was based on such frameworks are
designed by means of customization of the classes and are very useful in the development
of consistent user interfaces.
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Figure 2.9: Main classes of the proposed framework
1. Profile: The Profile class contains several characteristics that define the profile
of the user. It is an abstract class that specifies common attributes and functionalities of
users. Classes in this hierarchy collaborate with classes in the interface hierarchy, in order
to offer adequate interfaces to users.
2. Interface: The Interface class defines interfaces that are open to each profile of
users. This class depends on the Application class.
3. Record: This is responsible for keeping the record of the different users.
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4. Application: The Application class is responsible for the functionality of the
system.
5. Mediator: The Mediator class is responsible for the communication and
synchronism of the components with in the different user.
6. Login: The Login class is responsible for the right access for the users. When
the user logs for the first time into the system, the user supplies certain information that
will help to define his accessibility to the system.
CHAPTER 3
METHODOLOGY
3.1
Introduction
The key to success in business is the ability to gather, organize and interpret
information. System analysis and design is a proven methodology that helps both large
and small business to reap the rewards of utilizing information to its full capacity. The
development of Information System often follows a life cycle. Project development
methodology is used to develop and support the information systems. The system
development life cycle (SDLC) is a common methodology for System development.
SDLC is a series of steps used to mark the phases of development for an information
system.
3.2
Project Methodology
The project development life cycle is central development of an efficient
information system. The system development life cycle (SDLC) is illustrated in figure 3.1
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(Valacichs, S. J. et al. (2004)). The project development life cycle is consists of four main
stages or phase;
Phase 1: Planning Phase
Phase 2: Analysis Phase
Phase 3: Design Phase
Phase 4: Implementation and Operation.
Figure 3.1: Phases in SDLC
3.2.1
Planning Phase
The first phase of the systems development life cycle is system planning. This
phase deals with process of identifying, selecting, initiating, and planning of system at
which an organization creates and assesses the original goals and expectation for a new
system. The planning phase is the fundamental process of understanding why an
67
information system should be built and determining how the project team will go about
building it. There are two primary activities in planning phase;
3.2.1.1
Project Identification and Selection
During this activity, the top management team will identify and assess all
possible systems development projects that the business unit could undertake. Different
Organizations have different approaches to identifying and selecting projects. In this
activity the organizations decide whether the project should be undertaken.
3.2.1.2
Project Initiation and Planning
Proper project planning and initiation is very important to reduce the time
needed to complete afterward project phases, including system analysis. Organization
will follow this planning through out the other phases, so this planning and initiation
activity is crucial for the project success to reach to the goal.
3.2.2
Analysis Phase
System analysis is the part of the system development life cycle in which we
investigates current information system in an organization, identifies improvement
opportunities and develops a concept of the new system. This phase usually includes an
analysis of the current system (called the as-is-system) and its problems, and then ways to
design a new system (called the to-be system). There are three main activities in this
phase;
68
3.2.2.1
Determining Requirements
During the requirements determination activity, we should gather information
about the system.
There are some method to gather information and determining
requirements such as interviews, questionnaire, observations and business documents. In
analysis of this information, in conjunction with input from project sponsor and many
other people leads to the development of a new system.
3.2.2.2
Structuring Requirements
Structuring means transform the system requirements we find into table,
diagrams, and other formats that make them easier to translate into technical system
specification. We can use either System Application Development Methodology (SADM)
or Object Oriented Modeling (OOM) to structure the system requirements. There are two
types of modeling, process modeling and data modeling.
3.2.2.3
Alternative Generation and Selection
In this phase, we will transform all of the information we have gathered and
structure into some concrete ideas about the design for the new information system. Part
of this activity involves taping into sources inside and outside an organization to
determine the best way that organization can acquire the replacement system.
69
3.2.3
Design Phase
In Design phase we will design the new system according to the result from
analysis phase. Although most of the strategic decisions about the project were made
during analysis phase, the steps in the design phase determine exactly how the system
will operate. The system design phase consists of two main activities;
3.2.3.1
Designing the Human Interface
This activity is about designing system’s interface, where the users will
communicate or interact with the system using these interface.
3.2.3.2
Designing Database
In this stage, we will design the database for the system by graphically represent
the organization’s data. There are two types of database design; physical database design
and logical database design. Logical database model, describes data using a notation that
corresponds to a data organization used by a database management system. Physical
design undertaken physical file and database design.
3.2.4
Implementation and Operation Phase
The final phase in the SDLC is the implementation and operation phase, during
which the system is actually built. This phase of the system development life cycle is the
most expensive and time-consuming phase because all the work has to be completed
70
Figure 3.2: Operational Framework
71
Project
Development
Activities
Activities that have done in
Phase
Planning Phase
MIS
1. Project Identification and
1. List down all the project
Selection
title that has been
i. Identify and assess all
suggested.
possible systems
development projects.
ii. Next, those projects
deemed most likely to
yield significant
organization benefits,
2. Discuss with supervisor
and choose an appropriate
project title.
3. Project MIS has been
chosen.
4. Identify the background
given available recourses,
problem of Parl Bone
are selected.
Mills.
2. Project Initiation and
Planning
5. Determine project scope,
objective and importance.
i. Determining project
scope, objectives and
identifying project
activities.
Analysis Phase
1. Determining Requirements
i. Gather information on
1. Interview the managing
director, and procurement
what the system should do
officers about their
from as many sources as
requirements for the
possible. (Users of the
project.
current system, reports,
forms and procedures.)
ii. The system requirements
are carefully documented
and made ready for
2. Analyze organization’s
report, forms and
procedure that related to
supplier selection.
3. Al the requirements are
72
structuring.
documented.
4. Transform all the data
2.
Structuring Requirements
i. Find table, diagrams, and
requirements and process
requirements in
other formats that make to
appropriate tables and
translate the requirements
charts.
into technical system
specification.
ii. There are two types of
5. Generate design strategies
for the system according to
modeling, process
the requirements.
modeling and data
6. Chose the appropriate
modeling.
strategies to be used to
design the system.
3.
Alternative Generation
and Selection
i. Transform all of the
information have gathered
and structured into some
concrete ideas about the
design for the new
information system.
ii. One of these design
strategies will be pursued
in the design phase of the
life cycle.
Design Phase
1. Designing the Human
Interface
i. Designing system’s
interface.
ii. Design the forms, reports,
1. Fix Hardware, Software
and Network
infrastructure that will
be used for the system.
2. Develop the database.
73
interface and dialogue for
the system.
3. Develop the program
design.
2. Designing Database
i. Design the database for
the system by graphically
represents the
organization’s data.
Implementation
Phase
ii. The seven major activities
will be concerned in this
1. Test the system to make
sure its performance.
stage is coding, testing,
2. Install the system
installation,
3. Train the users
documentation, training,
4. Identify all changes
support and maintenance.
needed for the system.
iii. The finished system will
be implemented in the
organization.
iv. Then will be tested by the
user.
v. Need to provide
documentations and
training for the users to
use the system.
Table 3.1: Activities in Project Development Phase
74
3.3
System Development Methodology
A prototyping base methodology performs
the analysis, design, and
implementation phases concurrently. All three phases are performed repeatedly in a cycle
until the system is completed. Figure 3.3 illustrated prototyping. The first step in
prototyping is to determine the initial or basic requirements of the systems. After the
problem is identified, the system prototype will be build. When the prototype is complete,
the users will work with it and will come out with their opinion on the system. According
to this feedback, the prototype will be improved and the new version will be given to the
users again. This iterative process continues until the users are relatively satisfied with
the system.
Figure 3.3 : The Prototyping Method
The key advantage of a prototyping-based methodology is that it
very
quickly
provides a system for the users to interact with, even if it is not ready for widespread
organizational use at first. Prototyping reassures the users that the project team is working
75
on the system (there are no long delays in which the users see little progress), and
prototyping helps to more quickly refine real requirements. Rather than attempting to
understand a system specification on paper, the users can interact with the prototype to
better understand what it can and cannot do.
3.4
Hardware and Software Requirements
Some hardware and software are required to help us in developing the MIS
efficiently, systematically, and effectively. Table 3.2 shows the software that needed to
develop the system and the purpose or function of it.
Software
1. Microsoft Project 2002
Purpose
Microsoft project used to generate Gantt and Pert
chart that used as a tool to schedule the project
development.
2. Rational Rose 2002
Rational Rose is software for UML modeling.
This software will be used as a helping tool to
model the system.
Example: Use case diagram, Class Diagram,
Sequence Diagram and etc.
3. Microsoft Office Visio 2003
Microsoft Visio is used to draw diagrams.
5. Macromedia Flash MX 2004
This software is used to create some animation
features that will be included in system.
6. Adobe Photoshop 7.0
This software used to create and edit images.
7. Microsoft VB.net
This is a programming language that will be used
to program and develop the system.
8. Microsoft SQL Server 7.0
SQL server will be used to develop the database
for the system.
Table 3.2: Software required developing the system
76
Hardware that needed to develop the system are:
1. Personal Laptop
•
Pentium 4 M760 processor
•
2MB L2 cache
•
2.0 ghz
•
533MHz FSB
•
15.0” XGA TFT LCD
•
Hard disk capacity : 60GB
•
RAM speed : 256MB DDR2
2. Printer
3.5
Project Schedule
The project schedule is shown in Gantt chart attached in Appendix A The project
schedule, scheduled all the activities that will be done to develop the project according to
the development phase. The project schedule covers the period of 32 weeks. The studies
started in the first week of July, 2006 with preliminary search and identify the project that
will be proposed. The development process hoped to be end on 1st week of March 2006
in Implementation and Testing phase.
77
3.6
Summary
In this chapter we have identified the project development methodology and
methods or approaches to develop the system. The flow of development activities
through the SDLC has been highlighted. The project schedule is also has been elucidated
in this chapter. The chapter laid down the methodology on how this project will be
conducted and how to systematically pursue and achieve the research objectives. Hope
that the identified methodology will serve as a guide to develop intangible information
asset valuation system prototype.
CHAPTER 4
SYSTEM DESIGN
4.1
Introduction
PARL Bone Mills started its activities in the year of 1999. But it took past two
years for setting up the manufacturing unit and end of 1998 the company got the export
license from the Govt. Initially the bone market was very scattered and the business was
not boost up those days. But still the market was there. Basically the South America and
Australia were pioneer suppliers for bones to all Europe, USA, and some part of Asia.
But because of the mad cow disease occur in Australia the buyer targeted the Asia to get
supplier for them. Actually that was the starting of the real bone business for south Asia
region. Fortunately for PARL Bone Mills it was the very crucial time to start their
business and entering the bone market in Asia and Europe. There was very high demand
of crushed bone at that time, but PARL Bone Mills got some limitation to serve the needs
as their procurement of raw materials was not align with the demand and also the
production capacity was partial to support. But by 2003, PARL Bone Mills got fully
established in terms of production capacity and setup new machineries for production.
79
The main objective of PARL Bone Mills is to become one of the pioneer and
largest bone exporter in Bangladesh, where quality goods are exporting at reasonable
cost. Indeed, PARL Bone Mills endeavors to give the best quality and competitive cost
according to the world market for their valued customers. Of course, this is reflected in
its mission and vision statements. Specifically, the mission of PARL Bone Mills is:
“To get profit, be a reliable exporter for the foreign buyers”
While the vision is
“To maintain quality product and competitive price”
4.2
Organizational Analysis Findings
Before proceeding with any analysis, it is very important to understand PARL
Bone Mill’s vision, mission, objectives and organizational structure. The organizational
analysis also presents details about PARL Bone Mill, its business strategy and its supplier
management activities. The information has been gathered from the internal interview.
As a result from the findings, a final assessment is presented to provide an overall picture
of this section.
PARL Bone Mill is an export oriented organization. The organization involves in
purchasing raw materials, semi finished and finished goods from the local suppliers,
transform the raw materials and semi finished goods to final product and export the goods
to the foreign buyers. The main category of the export goods are: Bone grist, Bone meal,
80
Crushed bone and Crushed horn and hoofs. After getting the purchase order from the
buyer, PARL Bone Mills buy the raw materials from the suppliers, manufacture the raw
materials in the factory and export the finished goods. So to run the business smoothly
and to keep on their good will in the business field, it is very crucial for PARL Bone Mill
to search out the best raw materials. Because they will not be able to export the quality
finished goods if they are not be able to find out the quality raw material.
4.2.1
Organization Structure
As at now, there are 17 staffs working in PARL Bone Mills at head office Dhaka,
Bangladesh and 55 workers are working in PARL Bone Mills factory at Shambagath,
Mongla. The administration and management work is carried out by the Managing
Director and CEO of the organization. Figure 4.1 shows organization structure of PARL
Bone Mills.
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Figure 4.1 Organizational structure of PARL Bone Mills.
The functions of PARL Bone Mills are divided in five divisions. The divisions are
Administration, Marketing, Commercial, Accounting, Procurement
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4.2.2
4.3
Activities in PARL Bone Mills:
•
Find out the foreign buyers
•
Understand their requirements
•
Procurement the raw materials
•
Transformation of raw materials to finished goods
•
Warehouse management
•
Pre shipment commercial work
•
Arrange shipments
•
Confirmation to buyer about shipment
As-Is Process
As it has been stated before, the main activity of PARL Bone Mills is exporting
goods to foreign customer. PARL Bone Mills purchases raw materials from suppliers,
manufacture the raw materials and export the finished goods to the customers (buyers).
Supplier plays a major role at PARL Bone Mills in handling the exporting
business. Because the final finished goods are manufactured from the raw materials,
collecting (buying) from the suppliers. Main activities in supplier management are stock
checking, selecting supplier to order for raw material, order to the supplier, collecting the
raw materials from suppliers and finally recording all information about supplier. Figure
4.2 shows the activities of supplier management.
83
The first activity is purchasing of raw materials. PARL Bone Mills purchases
goods from suppliers and also purchases semi finished and finished goods straight from
manufacturers. Raw materials received from the suppliers are manufactured in the factory
and stored in warehouse. Finished goods that collected are also stored in the warehouse.
Finally all finished product will be shipped to the buyers.
Different suppliers have different quotations for different raw materials. PARL
Bone Mills first checks all the quotations getting from the suppliers and then depending
on their dew amount, quality and cost, the management makes their decision to choose
the supplier.
At present PARL Bone Mills is doing all their record store access manually. The
organization is not using any system to select their supplier. But PARL Bone Mills is
using fax machine which enables receiving orders from their buyers and PCs to process
all the shipping documents.
Figure 4.2: Activities of PARL Bone Mille
84
Activities
1. Raw material
Purchasing
Explanation
i) The procurement officer will order the raw materials from the
supplier or manufacturer.
ii) The supplier will send the raw materials to PARL Bone Mills.
iii) The supplier will give a bill to PARL Bone Mills.
iv) The amount and information about the raw material that has
been purchased will be recorded by factory manager and
accounts officer.
2. Stored in
warehouse
i) The raw materials that received from the suppliers will be
stored in the ware house.
ii) Raw materials and semi finished goods will be transformed to
finished goods.
iii) Then the finished goods will be packed for ship and stored in
the ware house.
3. Shipment
i) After completing all arrangement of shipments, they ship the
product to the destination port of the buyer.
ii) Each shipment recorded manually.
Table 4.1 Activities that involve in supplier management
4.3.1
Activity and Data Model
All the activities and process that involve in PARL Bone Mills has been
modeled using Use Case Diagram, Sequence Diagram and Activity Diagram. Data that
involve in each process or activity is illustrated using Class Diagram and Sequence
Diagram.
85
4.3.1.1
Use Case Diagram
Figure 4.3 shows Use Case diagram that has been developed based on supplier
selection and raw material ordering process that involves in PARL Bone Mills. The
Procurement officer will check the shipment order in hand to identify the quantity of
finished goods that need to be shipped. Then the Procurement officer will check the
warehouse stock level to identify the quantity of raw materials that need to be purchase
from the suppliers. When the stock level reach the reorder level, then the Procurement
officer and Managing Director will make the ordering decision and will order the new
stock from the supplier. After purchasing the raw materials, the Account officer will
update all information regarding raw materials.
86
Use Case Diagram
Check Order in hand
Procurement
officer
Check warehouse stock
Order for raw material
Supplier
Accounts officer
Get raw material
Record sales from supplier
Figure 4.3 Use Case Diagram
Management
87
4.3.1.2
Use Case Description
Use case description is explanation of each use case that involve in use case
diagram that showed in figure 4.3. Use Case description is created based on activities that
involve in each use case.
There are six use case descriptions. Figure 4.4, 4.5, 4.6, 4.7 and 4.8 shows the
use case description for each use case.
88
Use Case Description
Use case name : Check Order in hand
Primary Actor : Procurement Officer
ID : 1
Importance Level : High
Use case type : Detail, essential
Procurement Officer : - View current confirm shipping order for management
Brief Description
- This use case describes how the Procurement officer will know
about order quantity for respective buyers with specific
products
Trigger
: Procurement Officer will be informed about the goods to be shipped
Type
: Internal
Relationships :
Association
: Procurement Officer
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. PARL Bone Mills will receive the order from the buyers.
2. PARL Bone Mills check all the shipping conditions with the buyer
3. PARL Bone Mills will confirm the shipment with buyer.
4. PARL Bone Mills will update shipping order.
Sub flows:
Alternative/Exceptional Flows :
1. Order can be cancelled any time due to violation of agreement.
Figure 4.4: Use Case Description for Check Order in hand
89
Use case name : Check Ware House Stock ID : 2
Primary Actor : Procurement Officer
Importance Level : High
Use case type : Detail, essential
Procurement Officer : - Procurement officer will be informed about the stocks of the
products available in the warehouse
Brief Description
- This use case describes how the Procurement officer will know
about the stocks in the ware house
Trigger
: Procurement Officer can decide about the new orders and warehouse
status
Type
: Internal
Relationships :
Association
: Procurement Officer
Include
:
Extend
:
Generalization :
Normal Flow of Events :
Sub flows:
1. Procurement officer will query to the warehouse
2. He has to well informed about the each product quantity
3. The production line has some raw materials under process has to be added with
the stock
Alternative/Exceptional Flows :
1. Stocks can be optimistic due to not packing.
Figure 4.5 Use Case Description for Check Warehouse stock
90
Use case name : Order for Raw Material
Primary Actor : Management
ID : 3
Importance Level : High
Use case type : Detail, essential
Management : Place order for purchasing raw materials.
Supplier
: Get order to supply the raw materials.
Brief Description
- This use case describes how the Management will place order
for purchasing raw material from suppliers for their upcoming
shipments
Trigger
: Select the supplier for getting the raw materials.
Type
: Internal
Relationships :
Association
: Management, Supplier
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Management will place the order according their product requirement for
shipment
2. Management will find the supplier for place the order.
3. management will confirm the supplier by giving the purchase order
Sub flows:
Alternative/Exceptional Flows :
1. If the existing supplier can not supply the raw materials, management will find
other sources for raw materials.
Figure 4.6 Use Case Description for Order for Raw Material
91
Use case name : Get Raw Materials
Primary Actor : Management
ID : 4
Importance Level : High
Use case type : Detail, essential
Management : Get raw materials from suppliers.
Supplier
: Deliver raw materials to management.
Brief Description
- This use case describes how the Management will get raw
materials from the suppliers to transform into finished goods.
Trigger
: Update stock in the warehouse.
Type
: Internal
Relationships :
Association
: Management, Supplier
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Management will collect the raw materials from the suppliers according to
their order.
2. Management will update the warehouse.
Sub flows:
Alternative/Exceptional Flows :
1. If the supplier can not supply the raw materials on time, management will
knock the supplier.
Figure 4.7 Use Case Description for Get Raw Materials
92
Use case name : Record Raw Material ID : 5
Importance Level : High
Information
Primary Actor : Accounts Officer
Use case type : Detail, essential
Accounts Officer : Record all information about raw materials.
Brief Description
- This use case describes how the Accounts officer will record all
information about raw materials after purchasing raw material
from the suppliers.
Trigger
:
Type
: Internal
Relationships :
Association
: Accounts Officer
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Accounts Officer will update all information about raw materials.
Sub flows:
Alternative/Exceptional Flows :
2. If the supplier can not supply the raw materials on time, management will
knock the supplier.
Figure 4.8 Use Case Description for Record Raw Material
93
4.3.1.3
Activity Diagram
Activity Diagram is to represent the main processes in supplier management at
PARL Bone Mills. Please refer to Appendix B-1 for activity diagram of MIS. The
diagram starts with the Check stock in warehouse action as the first activity. If the stock
that is needed to be shipped is not available in the warehouse, the Management and
Procurement officer will make decision about the quantity of purchasing raw materials
from the supplier and semi finished goods from the manufacturer.
The valid stock in the warehouse is always checked and if the stock level is
lower, the new purchasing order will be placed. The Management and Procurement
officer will choose the useful supplier and will order for raw material. Then the
Management will collect the raw material from supplier and finally the Accounts officer
will record all information about raw materials.
4.3.1.4
Class Diagram
Class diagram is to model data that involve in business activity of supplier
management at PARL Bone Mills. Figure 4.9 shows class diagram of supplier selection
and ordering raw material process activities and data that involves in that processes.
94
Class Diagram
Prcurement officer
1
Check
Stock
1..*
1
1
1
Order
1
Contain
Update
1..*
1..*
Deliver
Sullpier
Raw material
1..*
1..*
1..*
1..*
1..*
Record
1..*
Shipping order
Record
1
Account officer
1
Figure 4.9 Class Diagram
95
4.3.1.5
Sequence Diagram
Sequence diagram is created to show the objects interaction in the process of
supplier management. Please refer to Appendix B-2 that illustrates the sequence diagrams
for MIS.
In the first sequence diagram the Procurement Officer will check the shipment
order quantity from order list and will get the information.
In the second sequence diagram the Procurement officer will check the stock
level in warehouse to make decision about the quantity of purchasing raw material.
The third sequence diagram illustrates the process of selecting supplier and
placing order for raw material. The management and Procurement officer will get
supplier information from the supplier list. If there is no existing supplier available
according to the order requirements, they will select a new supplier. The management
will send order for the raw material.
In the fourth sequence diagram, the Management will receive delivery of raw
material from the supplier.
In the fifth sequence diagram The Accounts officer will update all information
about the supplier.
4.4
User Requirements
User requirement for the project, gathered by interviewing top management of
PARL Bone Mills. The User requirements are divided to two types. There are functional
requirements and non-functional requirements
96
4.4.1
Functional Requirement
Functional requirement relates directly to a process the system has to perform or
information it needs to contain. Following table shows the functional requirements for
project.
Function
Functions
Project Functional Requirement
1. Able to update the inventory status for raw materials supplied
from the supplier
2.
Able to record all the supplier details for the respective
products.
3. Able to take decision about selecting the supplier.
Printing
1. To submit the supplier details in terms of their performance
and status with the organization
2. The printing documents can be previewed
3. The supplier details can be print in month or year basis.
Table 4.2: Functional requirements for Project
4.4.2
Non - Functional Requirement
Non-Functional requirement refer to behavioral properties that the system must
have, such as usability and performance. Table 4.3 shows non-functional requirement for
MIS.
97
Function
Project Non-Functional Requirement
Operational
1. The system can be access from factory.
2. The system should be able to integrate with existing accounts
system
3. The system also should be able to integrate with supplier’s
inventory system.
Performance
1. The system response time must be less than 7 seconds.
2. The system should be available for use 24 hours per day and
365 days per year.
3. The Database must be updated in real time.
Security
1. Only Managing Director can approve the supplier.
2. The entire users have their login id.
3. If the login page is idle for 2 minutes the page must be
expired.
Table 4.3: Non-Functional Requirement for project.
4.5
To-Be Process
Supplier selection decision system and order for raw material that will be develop
is planned and designed systematically and carefully. It is planned based on the
functional and non-functional requirements from the users and based on existing
processes in PARL Bone Mills. It will integrate all the process that involves supplier
selection process in PARL Bone Mills, starting from checking the raw material in stock
into PARL Bone Mills and until the supplier deliver the product. Figure 4.10 shows the
framework for MIS. The output of MIS is supplier selection decision. The framework
98
shows that from supplier, supplier analysis is done to get supplier information. From the
inventory, stock analysis is done to get stock information. Based on the information, MIS
will generate a supplier selection decision to the Managing Director.
Figure 4.10: Framework of MIS
99
4.5.1
Activity and Data Model
As has been planned, activities and process that involve in MIS will be modeled
using Use Case Diagram, Sequence Diagram, Activity Diagram and State Chart Diagram.
Data that involve in each process or activity is illustrated using Class Diagram and
Sequence Diagram.
4.5.1.1 Use Case Diagram
Figure 4.11 shows the use case diagram Management Information System. The
Procurement officer will check the shipping order and will get information from the
Commercial officer. Then the Procurement officer will check the raw material stock and
will also check the material in production and will get the information regarding these
from Factory manager. The Procurement officer will collect all supplier information from
the Factory manager (about the quality of the raw material), Accounts officer and finally
from the suppliers that the raw materials they need is available or not. After getting all
information the Procurement officer will choose the supplier.
Managing Director will approve the supplier. Procurement officer will place order
to the supplier for the raw materials. Factory manager will collect the raw materials from
the suppliers and finally Accounts officer will update supplier information.
100
Procurement
Officer
Check Raw material Stock
Factory Manager
Check material in production
Register the supplier
Get supplier information
Managing
director
Procurement
officer
Supplier
Approve supplier
Place order
Factory Manager
Get Raw material/update quality
Account Officer
Supplier Account Information
Figure 4.11: Use Case Diagram
Managing
Director
Managing
Director
101
4.5.1.2 Use Case Description
Use Case description is created based on use cases in use case diagram. There are
seven use cases that involve in MIS. Figure 4.12, 4.13, 4.14, 4.15, 4.16, 4.16, 4.17, 4.18
and 4.20 shows the use case description for each use case.
Use case name : Check Shipping Order
Primary Actor : Procurement officer
ID : 1
Importance Level : High
Use case type : Detail, essential
Stakeholders and Interest :
Brief Description
- This use case describes how the Procurement officer checks
shipping orders.
Trigger
: Shipping orders reviews
Type
: Internal
Relationships :
Association
: Commercial officer
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Procurement officer will verify all the shipping orders.
2. Commercial officer will inform about the shipping orders
to Procurement officer.
Sub flows:
Alternative/Exceptional Flows :
Figure 4.12: Use Case Description for Check Shipping Order
102
Use case name : Check Raw material Stock
Primary Actor : Procurement officer
ID : 2
Importance Level : High
Use case type : Detail, essential
Stakeholders and Interest :
Brief Description
- This use case describes how the Procurement officer checks
raw
material stock.
Trigger
: Raw material stock reviews
Type
: Internal
Relationships :
Association
: Factory Manager
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Procurement officer will check the raw material stock.
2. Procurement officer will get information about raw
material stock from the Factory Manager.
Sub flows:
Alternative/Exceptional Flows :
Figure 4.13: Use Case Description for Check Raw material Stock
103
Use case name :
Check material in ID : 3
Importance Level : High
production
Primary Actor : Procurement officer
Use case type : Detail, essential
Stakeholders and Interest :
Brief Description
- This use case describes how the Procurement officer checks the
material that is loaded for production
Trigger
: Production quantity checked
Type
: Internal
Relationships :
Association
: Factory Manager
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Procurement officer will check the material that is loaded
for production.
2. Procurement officer will gather information from Factory
Manager.
Sub flows:
Alternative/Exceptional Flows :
Figure 4.14: Use Case Description for Check material in production
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Use case name : Get Supplier Information
Primary Actor : Procurement officer
ID : 4
Importance Level : High
Use case type : Detail, essential
Stakeholders and Interest :
Brief Description
- This use case describes how the Procurement officer collect
information about suppliers.
Trigger
: Supplier information reviews
Type
: Internal
Relationships :
Association
: Factory Manager, Accounts officer, Supplier.
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Procurement officer will gather information about supplier.
2. Factory manager will informed the Procurement officer
about the quality of the product.
3. Accounts officer will inform the Procurement officer about
the price, supplier accounts, new supplier information etc.
4. Procurement officer will inquire the supplier if the product
that is needed is available or not.
Sub flows:
Alternative/Exceptional Flows :
Figure 4.15: Use Case Description for Get Supplier Information
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Use case name : Choose Supplier for order
Primary Actor : Procurement officer
ID : 5
Importance Level : High
Use case type : Detail, essential
Stakeholders and Interest :
Brief Description
- This use case describes how the Procurement officer choose the
supplier considering all information
Trigger
: Supplier selects
Type
: Internal
Relationships :
Association
:
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Procurement officer will choose the supplier
2. Procurement officer will inform the Managing Director
about the Supplier.
Sub flows:
Alternative/Exceptional Flows :
Figure 4.16: Use Case Description for Choose Supplier for order
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Use case name : Approve Supplier
Primary Actor : Managing Director
ID : 6
Importance Level : High
Use case type : Detail, essential
Stakeholders and Interest :
Brief Description
- This use case describes how the Managing Director approves the
supplier.
Trigger
: Supplier approved
Type
: Internal
Relationships :
Association
:
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Managing Director will approve the supplier
2. Managing Director will ask the Procurement officer to
place order for raw material to the approved supplier.
Sub flows:
Alternative/Exceptional Flows :
Figure 4.17: Use Case Description for Approve Supplier
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Use case name : Place order
ID : 7
Primary Actor : Managing Director
Importance Level : High
Use case type : Detail, essential
Stakeholders and Interest :
Brief Description
- This use case describes how the Procurement officer places order to
the supplier for purchasing raw material.
Trigger
: Stock raw material
Type
: Internal
Relationships :
Association
:
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Procurement officer will place order to the approved
supplier for purchasing raw material.
Sub flows:
Alternative/Exceptional Flows :
Figure 4.18: Use Case Description for Place Order
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Use case name : Get raw material
Primary Actor : Managing Director
ID : 8
Importance Level : High
Use case type : Detail, essential
Stakeholders and Interest :
Brief Description
- This use case describes how the Factory Manager collects raw
materials from the supplier.
Trigger
: Stock raw materials.
Type
: Internal
Relationships :
Association
: Supplier
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Factory Manager will collect raw material from the
supplier.
2. Factory Manager will do further processing to transform
the raw material.
Sub flows:
Alternative/Exceptional Flows :
Figure 4.19: Use Case Description for Get raw material
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Use
case
name
:
Update
Supplier ID : 9
Importance Level : High
Information
Primary Actor : Accounts Officer
Use case type : Detail, essential
Stakeholders and Interest :
Brief Description
- This use case describes how the Accounts Officer updates supplier
information.
Trigger
: Create new supplier information.
Type
: Internal
Relationships :
Association
: Factory Manger, Supplier
Include
:
Extend
:
Generalization :
Normal Flow of Events :
1. Accounts officer will update the supplier information.
2. Factory Manager will inform Accounts Officer about the
supplier information.
3. Accounts officer will collect information from supplier.
Sub flows:
Alternative/Exceptional Flows :
Figure 4.20: Use Case Description for Update Supplier Information
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4.5.1.3 Activity Diagram
Activity diagram for MIS has been attached in Appendix C. The Procurement
officer will check the shipping order and will get information from the Commercial
officer. Then the Procurement officer will check the raw material stock and will also
check the material in production and will get the information regarding these from
Factory manager. The Procurement officer will collect all supplier information from the
Factory manager (about the quality of the raw material), Accounts officer and finally
from the suppliers that the raw materials they need is available or not. After getting all
information the Procurement officer will choose the supplier.
Managing Director will approve the supplier. Procurement officer will place order
to the supplier for the raw materials. Factory manager will collect the raw materials from
the suppliers and finally Accounts officer will update supplier information.
4.5.1.4 CRC Card
Class-Responsibility-Collaboration (CRC) cards are created to point out the
responsibilities and collaborations of a class. CRC Cards for each class that involve in
class diagram are attached in Appendix-D.
111
4.5.1.5
Class Diagram
Figure 4.21 shows class diagram of supplier selection and ordering raw material
process activities and data that involves in that processes.
Check
Procurement Officer
1
1
1
has
Stock
1..*
1
1
Raw Material
1..*
1..*
place
increase
register
1..*
supply
update quality
Order
record
1..*
1..*
Supplier 1..*
approve
1..*
record
receord
1
1..*
Managing Director
WareHouse Officer
Figure 4.21: Class Diagram
Accounts Officer
112
4.5.1.6
Sequence Diagram
Sequence diagram is developed to show the interaction that involve in MIS.
Appendix E illustrates how the Procurement officer interacts with MIS to select supplier
and ordering raw material to the selected supplier.
In the first sequence diagram the Procurement Officer will check the shipment
order quantity from order list and will get the information from Commercial officer.
In the second sequence diagram the Procurement officer will check the stock of
raw materials and will get information from Commercial officer.
In the third sequence diagram the Procurement officer will check the raw
material in production and will get information from the Factory manager.
The forth sequence diagram illustrates the process of getting supplier
information. Factory manager will inform about quality of the product. Account officer
will inform about supplier information and also about the new supplier. Factory manager
will also collect information from the supplier that the supplier is able to supply the
product or not.
The fifth sequence diagram illustrates the process of selecting supplier.
In the sixth sequence diagram Managing Director will approve for the supplier.
In the seventh sequence diagram Procurement officer will place the order for purchasing
the raw material. Eighth sequence diagram illustrates how Factory manager will get the
raw material from the suppliers.
In the ninth sequence diagram Accounts officer updates supplier information.
Accounts officer will get information from the supplier as well as from the Factory
manager.
113
4.6
System Architecture
In PARL Bone Mills, they are using Intranet system. They have their own set up
of one main server and some client machines. This architecture is mainly Client-Server
based. The diagram will show how the system will be distributed to the users.
Figure 4.22 : System Architecture
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4.7
User Interface design
User Interface Design identifies the basic operations of the system. Windows
Navigation Diagram is one of the popular tools to create system interface with links.
In this system the main users are managing director, Procurement Officer,
Accounts Officer and ware house officer. The Procurement Officer, Accounts Officer and
ware house officer will key in the data about all suppliers and their products. The ware
house officer will update the supplier information, Accounts Officer will update the
balance and Warehouse Officer will update the quality of product from the ware house.
The managing director is the one who will view all the data and give decision for the
each supplier. Figure 4.23 shows the interface design of the system.
115
Figure 4.23: Windows Navigation Diagram
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4.8
Database Design
Database is needed for the storage of data and produces the integrity and data
sharing. Data base design is important to avoid data redundancy and maximize the data
usage. Moreover it is useful to ensure that the data and information is being process in an
effective and efficient way. Please refer Appendix F to view the database design.
4.9
Summary
In this chapter, the background of organization PARL Bone Mills as the
project case study has been discussed. As initial finding, PARL Bone Mills is a trading
and manufacturing company that exports bone products to the customer and have to
procure huge raw materials for the production. They have to manage a number of
suppliers attached with them,. The existing process or ‘as-is processes’ that involve in
PARL Bone Mills has been identified and modeled using Unified Modeling Language
(UML).Based on this processes, project analysis has done to identify the user
requirements.
Derived from user requirements, ‘to-be processes’ for project has been done and
the final designing process has been done carefully. All the process has been modeled
using UML technique.
CHAPTER 5
DESIGN IMPLEMENTATION AND TESTING
5.1
Introduction
System Implementation is to putting a planned system into an action. System
Implementation is one of the most significant stages of system development. The main
concerns in the implementation phase are the construction of the new system, testing of
the system and training of the users about the system. The final product must be
completed before it is delivered to its users/client.
System testing defines a series of tests that will be conducted on a complete,
integrated system to evaluate the system's compliance module by module or as a whole.
Testing should ensure that each function of the system works as expected and any errors
or bugs are noted and analyzed.
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5.2
System Implementation
The major tasks of this phase are software installation process, programming,
database constructions, network installation and modules integration process.
5.2.1
Software Installation
In chapter 3 we have recognized some software to be used to develop the system.
The software that needed to implement and test the system are Microsoft® Windows XP
Professional, PHP and MySQL. Below are the details of the software needs:
1. Microsoft® Windows XP Professional
Microsoft® Windows is the most popular and user friendly operating system
today. It is designed to run with Intel and Intel-compatible microprocessors for example
Pentium IV. Windows XP Professional delivers the new standard in reliability and
performance namely:
•
Business-level Reliability
•
Remote Assistance
•
Windows Driver Protection
•
Improved Application Compatibility
•
Advanced Security
•
Multilingual Support
•
Group Policy for Centralized Desktop Management
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•
User State Migration
•
Side-by-Side DLLs
•
Scalable Memory and Processor Support
2. PHP
PHP is the Web development language written by and for Web developers. It was
developed in 1994 by Rasmus Lerdorf, software engineer, Apache team member and
International man of mystery. The first part of PHP was developed for his personal use in
late 1994.
PHP stands for PHP: Hypertext Preprocessor. The product was originally named
Personal Home Page Tools, and many people still think that is what the acronym stands
for. But as it expanded in scope, a new and more appropriate name was selected by
community vote. PHP is currently in its fifth major rewrite, called PHP5 or just plain
PHP.
PHP is a server side scripting language, which can be embedded in HTML or
used as a stand alone binary. Proprietary products in this niche are Microsoft’s Active
Server Pages, Macromedia’s Cold Fusion, and Sun’s Java Server Pages. Some tech
journalists used to call PHP “the open source ASP” because its functionality is similar to
that of the Microsoft product—although this formulation was misleading ,as PHP was
developed before ASP. Over he past few years, however, PHP and server side Java has
gained momentum, while ASP has lost mindshare, so this comparison no longer seems
appropriate.
.
The researcher will use PHP as the scripting language for this project because it is
easy to use for Web development as it has been designed from the outset for the Web
environment. That means that PHP has many built-in functions that make Web
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programming simpler, so that the researcher can focus on the logic of programming
without wasting precious development time. Below is the list of unique benefits of PHP:
i.
Rapid,
iterative
development
cycles
with
a
low
learning
curve.
PHP is the easiest to learn and use compared with other Web development languages.
The language syntax is very readable and understandable, simplifying team
development and maintenance. The code, embedded within HTML pages, can be
quickly deployed and tested, supporting an iterative development process
incorporating frequent user feedback. All of this leads to improved developer
productivity and better resulting applications.
ii.
Robust,
high-performance
and
scalable
platform;
stable
and
secure.
PHP is designed for building Web applications that are scalable up to a very large
number of users. PHP is stable and secure, robust enough for business-critical
applications requiring constant uptime and airtight security.
iii.
Easily integrated into heterogeneous enterprise environments and systems.
PHP is fully interoperable with other languages, protocols, systems and databases,
including C/C++, Java, Perl, COM/.NET, XML/Web services, LDAP, ODBC, Oracle
and MySQL. As an open source product, PHP is deployable anywhere: on any
platform, with any Web server, with any database. PHP is not tied to any proprietary
platforms or technologies.
iv.
Proven through widespread deployment and supported by a vibrant community.
PHP is the most widely deployed and used Web development language on the
Internet, surpassing ASP, JSP and Perl. The language has a vibrant community of
users continuing to support and improve the language. The easy extensibility of PHP
makes it very flexible in supporting new capabilities and enabling to take advantage
of extensions done by others.
For the purpose of designing the portal interface, EasyPHP will be used. EasyPHP
is a complete software package which allows the use of all the strength and flexibility
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offered by the dynamic language PHP and the efficient use of databases under Windows.
Easy PHP Package includes an Apache server, a MySQL database, a full PHP execution
as well as development tools for the portal.
3. MySQL
MySQL is an open source, SQL Relational Database Management System
(RDBMS) that is free for many uses. The history can be traced as far back as 1979, when
my SQL’s creator, Monty Wideness, worked for a Swedish IT and data consulting firm,
TcX.
MySQL is chosen for this project since it is a very fast, multi-threaded, multiuser, and robust Structured Query Language database server. It is a relational database
management system which stores data in separate tables rather than putting all the data in
one big storeroom which adds speed and flexibility. The tables are linked by defined
relations making it possible to combine data from several tables on request. The
advantages of MySQL are:
i. MySQL is fast
According to the MySQL Benchmarks, it is faster than PostgreSQL, AdaBas D,
Empress, and Solid, on Linux systems. It is also faster than Access 2000, DB2, Informix,
MS-SQL, Solid, Sybase, and Oracle 8.0.3, on Windows platforms.
ii. MySQL is easy
In spite of its high performance, MySQL is simple to download and install. Users
can download either the source code, or pre-built binaries for your platform. The
installation procedure is straightforward and well documented, and since the information
is readily available online users should have no problems installing it.
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iii. MySQL is free (in most cases)
MySQL is licensed under the GNU General Public License (GPL), which means
that if users want to install MySQL on their computers so that they can learn how to use
it, or to database-enabled their web site, they will not have to pay for it.
iv. MySQL can be secured
The MySQL server is fully networked, and therefore it can be accessed from
anywhere on the Internet. MySQL has full access control so users can determine the level
of access they would like end users to have.
v. MySQL is portable
Because MySQL is available on so many platforms, it is easy to develop an
application or work with a database that can be moved to a different platform. PHP and
Perl/DBI are two easy ways to develop cross-platform applications, and learning how to
use these languages to access MySQL is almost a necessity in the fast paced world of
web development.
5.2.2
Database Connection
The following codes are written for connecting the data base which was MySQL.
$db_hostname="localhost";
$db_username="root";
$db_password="";
$dbname="pbm";
$conn = mysql_connect($db_hostname, $db_username, $db_password) or
die("Silap hubungan!");
mysql_select_db($dbname, $conn);
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5.2.3
Module Application Programming
Each page in the system was programmed in Macromedia Dream weaver MX. In
system development process, java script was used as ‘respond object’ to send the script to
web server. Programming for each module was done parallel with maintenance and
database development. Examples of programming coding were shown at below:
i.
Coding to Insert Data
$query = "INSERT INTO
supplier(supplier_name,supp_add,phone,product)
VALUES('$supp_name','$supp_add','$supp_phone','$product')";
$result = mysql_query($query) or die(mysql_error());
ii.
Coding to Update Data
$sql = "UPDATE products SET ".implode(',', $value)." WHERE
products_prodnum = '$products_prodnum[$i]'";
$result = mysql_query($sql) or die(mysql_error());
iii.
Coding to Delete Data
$query = "DELETE FROM supplier WHERE
supplier_id=".$choosen[$i];
$result = mysql_query($query) or die(mysql_error());
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iv.
Coding to Critical part
$query1="SELECT * FROM quotation WHERE item_name = '$group_item' AND
status_approve=0 ORDER BY ". $order[$ord];
$result1=mysql_db_query($dbname,$query1);
while($row1=mysql_fetch_array($result1)){
extract($row1);
$query2="SELECT products FROM products WHERE products_prodnum =
'$item_name'";
$result2 = mysql_query($query2) or die(mysql_error());
if($row2=mysql_fetch_array($result2))
$product = $row2['products'];
5.3
Testing
A test plan should be developed at the very beginning and continually updated as
the system evolves. Testing starts with the development of a test plan that defines a series
of tests that will be conducted. For this project, the accurate technique to implement the
test plans is by concern the four stages of testing. The reason by applying that in project
is to ensure the quality of the system before it can be implemented in real environment.
5.3.1
Unit Testing
Unit test focus on a single unit—the class. The time of building each separate
module of the system and compiled for brought to working conditions, they must be
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individually tested with the prepared test data. Any undesirable happening must be noted
and debugged (error corrections).
5.3.2
Integration Testing
Integration tests assess whether a set of classes that must work together do so
without error. In this method of testing, it concerns all user interface and use-case testing
both in application interface and system management parts to ensure that the interface
would work accurately. The system started the test with each interface function. After
that, it is tested in every sub component or functions of the system.
For system interface part, the system interface testing became an important
function where it will ensure that all the data is saved correctly and there is no loss of
data or data base anomalies in the system. As part of testing, the system will be looking
for any signs of the collision between the interface components and those of the user as a
reason to ensure there is no confusion among the application on the system when they are
running simultaneously. At the end of the test all the results should be positive. All of the
system components should work properly.
5.3.3
System Testing
System tests are usually conducted by the systems analysts to ensure that all
classes work together without error. System testing is similar to Integration testing but is
much broader in scope. Here the test is done on actual data. The complete system is
executed on the actual data. At each stage of the execution, the results or output of the
system is analyzed. During the result analysis, it may be found that the outputs are not
126
matching the expected out of the system. In such case, the errors in the particular
programs are identified and are fixed and further tested for the expected output. When it
is ensured that the system is running error-free, the users are called with their own actual
data so that the system could be shown running as per their requirements.
This test is performed to validate the system where the entire system being
created and will test all the component of the system together. Every button, tab or menus
are tested to ensure that how well the system meets user requirement. In this test method
other types of the testing were using in this systems.
i)
Requirement testing
In every part in the system had been tested in order to tests whether requirements
were met.
ii)
Usability testing
Usability testing should consider in sight of a good interface design as user
interface is an important part of the system,
iii)
Security testing
The actual unit testing can be carried out by a variety of methods, including the
black box and white box testing methodologies. For this project, the researcher decided
to use black-box testing methodologies. Black-box or functional testing is one in which
test conditions are developed based on the program or system’s functionality; that is, the
tester requires information about the input data and observed output, but does not know
how the program or the system works. The tester focuses on testing the program’s
functionality against the specification. Table 5-1 is the black-box testing that has been
done by the researcher.
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Input data is tested and validated to know whether or not it is accepted by the
system. This is to ensure data integrity and security. Example of the security testing is the
used of user login. If the user name or password is not valid, then error message will be
displayed. Every user is granted access to different system functions based on the user’s
group.
Module
1. User Login
Verification
Enter valid user name
and password
User key in wrong
username or password
Interface
Result
If the user’s login is valid, then Valid
system will link to main menu.
Invalid pop-up message will Valid
display. Users need to re-enter
valid username and password.
User fill in complete
information
User
fill
in
incomplete
details
(leave
out
any
required fill)
Complete details will display Valid
after the registration.
Error pop-up message will Valid
display. User need to complete
required field.
User want to delete
the supplier quotation
and list of supplier
(c) Update quantity and User wants to change
outstanding balance
the some part for the
quantity
or
outstanding balance
4. Application of MIS System will give the
decision for best
Model
suppliers
MD will view the
different type of
suppliers
currently
available
Module
Verification
Calendar
5. Others
Show the pop up massage that Valid
successfully deleted.
2. Administration
(a)
Registering
the
suppliers and insert the
quotation no, Product,
Cost and Date.
(b) Delete the Entries
Supplier records
Show the pop up massage that Valid
successfully updated
Its showing the lists of suppliers Valid
with the category of selections
The suppliers
separately
are
viewed
Interface
Result
If the user’s want to put a date it Valid
will appear
View the all other previous Valid
supplier records
Table 5.1: Black-box testing/ Unit testing
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5.3.4
User Acceptance Test
The final stage of a system development is User acceptance testing (UAT) and
will often occur before the customer accepts a new system. User of the system will
perform these tests which, ideally, developers have derived from the User Requirements
Specification, to which the system should conform. In this phase, the system is fully
tested by the CEO of the company.
As the company is located in Bangladesh, so it was difficult to conduct the
acceptance test by the user of this system. While developing the system it was regularly
over phone conversation with the users. And from that was understandable the
expectations from the users. And the interfaces also sent to them by email for each
module developed and gather their views and ideas. The comments from them are really
noted and tried to design and giving the facilities like that way without making any
divergence of the main objectives. Please refer to Appendix G for questionnaire of UAT.
UAT Result
Question
Average Score (1-5)
1. System interface
2. Arrangements of menu and the
access
3. Description and command available
in the system.
4. System is successfully gathering
technical, soft and business skills.
5. Information on gathering the
supplier record
6. Meet its purpose to select the right
supplier
7. Is the system user friendly?
8. Willing to use this system in the
future?
9. Think that this system can be
commercialized?
10. Will the system solve all problems
regarding supplier?
4.5
Table 5.2: UAT Summary
4.5
4.5
4.4
4.7
4.8
4.4
4.6
4.3
4.7
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5.4
User manual
Before operating the system the user should read the user manual. It will define
the system very well especially for users who will use the system without training. User
manual is as attached at Appendix-H.
5.5
Summary
The system was developed and implemented in the implementation phase. The
implementation of the system was done according to discussed in chapter 4. This was
specific that the system that is developed was followed the specification of the system.
The development phase is completed with system testing and User Acceptance
Test (UAT). Unit and system testing is conducted to make sure that the system run
effectively and error free. For unit testing, black-box testing is conducted to test the
functionality of the system.
Users’ comments and suggestion are gathered and
improvements have been made to the system.
CHAPTER 6
ORGANIZATIONAL STRATEGY
6.1
Introduction
In this chapter, we will discuss about transformation from old system (as-is
system) to new system (to-be system). The vital point is to implement the new
system properly so that after implementing the new system no hassle will arise. To
be benefited, profited and get a good assistance from the new system, the new system
has to promote and implement properly in PARL Bone Mills. The end product
which is Management Information System for selecting the right supplier will go
through following steps as described in this chapter.
6.2
Conversion strategy
Conversion is the technical process by which the new system replaces the old
system. In this project the user should be move from the As-Is business process
model to computer programmed To-Be process. .Mainly the researcher suggests
following three major steps for that.
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The first step in the conversion plan is to buy and install any needed
hardware. PARL Bone Mills should have to buy some network equipments for the
remotely located ware house to be connected for accessing the system. For this
project the web server should be dedicated for run the system inside the organization.
The second step is to be install the software. It will include the new system
and some other additional software to support the main system.
The third step is to convert the data from As-Is system to To-Be system. Here
the old data should enter manually and then the operation will began for Parl Bone
Mills.
Technical Issues
-Install H/W
-Install S/W
-Enter old data in
new system
Mgmt Issues
-Revise the flow of
operation
-Motivate Adoption
-Conduct Training
Commence
Operation
Figure 6.1: Change plan for PARL Bone Mills
6.3
System Implementation
Figure 6.2 describes the steps for system implementation.
132
Step 1: Select the Person in charge of the system
PARL Bone Mills should select a person to perform necessary steps
when needed
Step 2: System content and features enhancement
IT Professionals must verify system content and enhance needed
features to select various types of suppliers.
Step 3: System Launch
System should be launched by the Managing Director of PARL
Bone Mills
Step 4: Register Expertise
IT Department of PARL Bone Mills should be filled with expertise
in the field of technical, business and soft skills.
Step 5: Review and Update
All the necessary information should be reviewed and updated
regularly.
Step 6: System Maintain
System should be maintained properly.
Figure 6.2: System Implementation Steps
133
The details of each steps are:
i)
Step 1
PARL Bone Mills must assign personnel in charge to perform necessary steps
prior to system launch. It is recommended that the owner of the system will be in IT
Department of PARL Bone Mills. Because IT can use adequate the system for
managing resource and planning for further enhancement.
ii)
Step 2: System content and features enhancement
PARL Bone Mills will verify system content and enhance or add insufficient
information especially on information in available for taking the decision.
iii)
Step 3: System Launched
System should be uploaded and launched at PARL Bone Mills and it is
proposed that the system will install as a centralized server act like web server.
iv)
Step 4: Register expertise
PARL Bone Mills top management should enforce IT professionals to
register IT expert within 3 main areas that are technical, business and soft skills. For
the future enhancement top management also should encourage IT professionals to
collaborate through the system with the suppliers and connect with them online for
the better result.
v)
Step 5: Review and Update
Records of the system should update regularly especially the quotations from
the different suppliers. Each Department must ensure that their own submission data
will be update at the point of change from the suppliers. The data will be checked
and reviewed by the dept head randomly.
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vi)
Step 6:System maintaining
The system should be maintained and updated time to time to ensure that it
can be continuously beneficial for the organization For example, if any supplier will
not supply any more, their profile should be deleted. Furthermore, it should be
maintained for data back up. It must be maintain at least every 6 months or once in
the year.
6.4
Benefit of implementing the MIS in PARL Bone Mills.
PARL Bone Mills will must be benefited by implementing MIS. It will assist
to take a prompt and wise decision for the management team of PARL Bone Mills.
Some benefits of MIS are:
i.
The organization will be benefited with easy-to-use Management
Information System.
ii.
Give the business a superior competitive advantage with flexible
reporting capabilities and approved ordering information.
iii.
The Procurement. Account and warehouse department will be able to
record and mark all the supplier as well as all the raw materials.
iv.
The Accounts department will be able to easily track out all outstanding
balance effectively.
v.
The employees can empower their self with advanced search capabilities
that provide quick, easy access to the supplier information they need, and
one-time stock and pricing entry that provides accurate and timely
information throughout the system.
MIS will give a new management concept to the Management, Procurement,
Warehouse and Accounts section by offering improved and better service.
135
6.5
Summary
The migration planning that considers technical issue and organizational issue
is important to make sure the implementation process is done efficiently. The
activities after the implementation process are also important to see the effectiveness
of the system supporting the work process. This chapter provides guidelines for
PARL Bone Mills in implementing the Management Information System for the
management. All necessary steps are included step by step for the PARL Bone Mills
to follow. However, PARL Bone Mills should revise these guidelines from time to
time to suit with PARL Bone Mills environment.
CHAPTER 7
DISCUSSION AND CONCLUSION
7.1
Introduction
In this 21st centaury Electronic commerce radically altered the way companies
conducted business and provided services to customers. Therefore, this project is
developed to implement ICT strategies in manufacturing businesses at management
sector. This project also adopts the decision support technique for the organization
7.2
Achievements
After conducting the initial finding, a basic concept and theory of the research had
been recognized and identified. The main findings are:
137
i.
The Basic concepts of Management Information System (MIS) as an
interactive computer-based system that help decision makers utilize data and
models to solve unstructured problems.
ii.
The concept of supplier management system will enable management to
easy decision making for select useful supplier
iii.
As the basic concept of supplier selection includes buying the raw material
for the organization which will be undertaken by the project and will
generate the report for the management will be most useful part for the
organization.
iv.
The concept of integrating the new system with the old system.
v.
PARL Bone Mills has chosen as an appropriate case study for the research
because of its wide range of trading and shipping experience. This
organization needs an information system that can help them in business
management.
7.3
Constrains and Challenges
There were some constrains and challenges that had been faced while conducting
the research process for the analysis phase. Some of the constraints were:
i.
First of all it was hard to communicate with PARL Bone Mills Management
and stuffs because of the communication from Malaysia to Bangladesh.
ii.
PARL Bone Mills stuffs were unable to provide all the real information
about the supplier that needed for the research because some of the
information were private and confidential.
138
iii.
It was hard to interact with PARL Bone Mills supplier as they are external
entity so could not get the proper information on proper time and the
information that had been given was not consistent and reliable.
iv.
It took a long time to identify and analyze the process that is involved in
PARL Bone Mills.
And the challenges were:
i.
Analyzing and understanding the organization as-is process very carefully
so that there will not be any complexity to reach to the to-be process.
ii.
Identify the appropriate needs and decision support for the supplier
management for the export oriented company.
iii.
Identifying and choosing the appropriate theory and Management
Information System model that will be used as a reference to propose the
supplier selection decision.
iv.
Choosing the accurate System Development Model as a guide in developing
this project. Choosing the wrong model can lead to improper project
development and this will cause a longer period of time to develop the
project.
v.
Design the to-be processes carefully because it will be the guideline in
developing the system.
139
7.4
Lessons Learned
During the development of the MIS system some lesson learned. Some of them
are:
i. As the supplier selection process is very crucial part for an export-import
orented business organization as PARL Bone Mills, so it is important to take
the right decision about selecting the right supplier.
ii. Effective time management can overcome time constrains. It is very impotant
to conduct all the tasks according to the schedule (Gantt Chart).
iii. Effective coomunication can help to identify and understand the user
requirements and needs as the input for the system.
iv. Creative and innovative ideas are needed to design the solutions for the
organization’s problem.
v. Co-operation and collaboration among development team and the organization
managemnt team is very important.
vi. On-time communication among the development team and the organization
can save a lot of complexities.
7.5
Aspiration
After completion of Project 2, it is hoped that
i.
All the objectives of the system that has been pointed out in the beginning of
the project have been achieved.
ii.
The supplier selection system have been implement successfully in the system
iii.
The users can use the MIS system without any hassle.
140
iv.
7.6
The system can also be used to help in other departments in the organization.
Future Suggestion
Some future suggestions to improve the Management Information System (MIS)
to be more effective and productivity are:
i.
Implement E-mail and messaging application to enable the users to get
feedback form the suppliers through the system.
ii.
The records should be updated on time and revised every year to enable to
provide more effective decisions.
iii.
The forecasting of the peak periods by considering not only the last but all
the past years records.
iv.
Improve the security elements of MIS to ensure that the system is not
hacked by the outsiders.
7.7
Summary
As a conclusion, all the activities that should be completed to finish the whole
project successfully, have been done properly. Starting from initial phase and followed by
analysis phase and design phase of the project also have been completed. Although there
are some challenges and constraints while doing the project but all the challenges and
constraints have been overcome and Project 2 (the system) is successfully implemented at
PARL Bone Mills in Bangladesh. Hopefully the Management Information System will
help the organization to manage the supplier selection process and to take a good decision
to select the right supplier for the organization.
REFERENCES
Britton, C. and Doake, J.(2000). Object Oriented System Development: A Gentle
Introduction. Boston Burr Ridge: McGraw Hill.
Dennis A. et al. (2005). System Analysis and Design with UML Version 2.0: An Object
oriented approach. 2nd Edition. Hoboken: John Wily & Sons, Inc.
Hugh J. Waston (1997), Building Executive Information Systems and other Decision
Support Applications: John Wiley & Sons
James L. Bossert, (1998), Supplier Management Handbook 2nd Edition, ASQC
James J. W. (194). Inventory Management Strategy for Local firm Supply Cooperatives.
United States. Service Report 41.
Laudon, K.C. and Laudon, J.P. (2004) Management Information Systems: managing the
digital Firm. 8th Edition. Upper Saddle River, New Jersy: Pearson Education, Inc
Leonard, K.J., Mercer, K. (2000), "A framework for information systems evaluation: the
case of an integrated community-based health services delivery system",
Murry, R.C. (1998). Object-Oriented Project Management with UML. Toronto: John
Willy and Sons, Ins.
Quatrani, terry (2003). Visual Modelling with Rational Rose 2002and UML. Boston:
Pearson Education. Inc.
142
Rea, C., Rea, D. (2002), "Managing performance and performance management:
information strategy and service user involvement", Journal of Management in
Medicine, Vol. 16 No.1, pp.78-93.
Silcer, E.A et al. (1998). Inventory Management and Production Planning and
Scheduling.3rd Edition. United States of America: John Wiley and Sons, Inc. 50455
Valacicha, S.J. et.al. (2004). Essential of System Analysis and Design. 2nd edition.
Michigan: Prentice Hall.
143
APPENDIX A
GANTT CHART
146
Appendix B-1
As-Is Activity Diagram
147
As-Is Activity Diagram
148
Appendix B-2
As-Is
Sequence Diagram
149
:Warehouse
List
: Procurement
officer
ChechStock()
GetInfo()
Sequence Diagram: 1
150
:Order List
: Procurement
officer
LookUpOrderQuantity()
GetInfo()
Sequence Diagram: 2
151
:Raw Material
List
:Supplier List
: Management
PlaceOrder()
GetSupplierInfo()
CreateSupplier()
SendOrder()
Sequence Diagram: 3
aSupplier:Suppl
ier
152
: Supplier
: Management
ReceiveRawMaterial()
Sequence Diagram: 4
153
:Supplier
Account Info
: Accounts officer
RecordRawMaterialInfo()
Sequence Diagram: 5
154
Appendix C
To-Be Activity Diagram
155
To-Be Activity Diagram
156
APPENDIX-D
CRC Card
157
Class Name : Procurement Officer
ID : 1
Description: An individual that procure
the raw material for
production and handle
supplier
Associated Use Cases : 5
Responsibilities
Type : Concrete,
Domain
Collaborators
Stock
Supplier
Order
View stock
View order
View supplier
Attributes :
P_O ID (unsigned long)
P_O Name (String)
Relationships :
Generalization (a-kind-of) :
Aggregation (has-parts) :
Other Associations :
CRC Card for Procurement Officer
158
Class Name : Order
ID : 2
Type : Concrete,
Domain
Description: A document send by
customer to the
organization for buying
the product
Associated Use Cases : 1
Collaborators
Responsibilities
Procurement Officer
View Buyer
View order quantity
View shipment time
View selling terms
Attributes :
Order No (integer)
Order Quantity (integer)
Order Product (string)
Shipment Date (date/time)
Order Date (date/time)
Order Destination (string)
Relationships :
Generalization (a-kind-of) :
Aggregation (has-parts) :
Other Associations :
CRC Card for Order
159
Class Name : Stock
ID : 3
Type : Concrete,
Domain
Description: The volume can inform in
quantity of raw material
Associated Use Cases : 1
Collaborators
Responsibilities
Record raw material quantity
Record raw material position
Record supplier quality
Attributes :
Stock_Id (integer)
Stock_Name (strong)
Stock_Type (string)
Supplier_Name (string)
Stock_Quantity (integer)
Stock_Quality (string)
Relationships :
Generalization (a-kind-of) :
Aggregation (has-parts) :
Other Associations :
CRC Card for Stock
Procurement Officer
Raw material
Supplier
160
Class Name : Raw material
ID : 4
Type : Concrete,
Domain
Description: Raw material is the main
component for production
which is transform to
finished good
Associated Use Cases : 1
Collaborators
Responsibilities
Show raw material differences
Stock
Supplier
Accounts Officer
Attributes :
RM_Id (integer)
RM_Name (string)
RM_Size (integer)
RM_Quantity (integer)
RM_Quality (string)
Relationships :
Generalization (a-kind-of) :
Aggregation (has-parts) :
Other Associations :
CRC Card for Raw material
161
Class Name : Supplier
ID : 5
Type : Concrete,
Domain
Description: An individual that supply
the raw material to the
organization
Associated Use Cases : 1
Collaborators
Responsibilities
Show supplier status
Show supplier availability
Show supplier performance
Attributes :
Supplier_Id (integer)
Supplier _Name (string)
Supplier_stock (integer)
Suppiler_quality (integer)
Supplier_availability (string)
Suppiler_Advance (integer)
Supplier_address(string)
Supplier_ due(integer)
Relationships :
Generalization (a-kind-of) :
Aggregation (has-parts) :
Other Associations :
CRC Card for Supplier
Stock
Supplier
Accounts Officer
162
Appendix E
To-Be
Sequence Diagram
163
:List shipping
order
: Procurement
Officer
Check()
GetInfo()
Sequence Diagram: 1
: Commercial
Officer
164
:List raw
material
: Procurement
Officer
Check()
GetInfo()
Sequence Diagram 2
: Factory
Manager
165
: Procurement
Officer
:List Production
Material
GetInfo()
Sequence Diagram 3
: Factory
Manager
166
:List Supplier
Info
: Procurement
Officer
: Factory
Manager
GetInfo()
GetInfo()
GetInfo()
GetInfo()
Sequence Diagram 4
: Account Officer
: Supplier
167
:List supplier
: Procurement
Officer
ChooseSupplier()
Sequence Diagram 5
168
:List Supplier
: Managing
director
ApprovedSupplier()
Sequence Diagram 6
169
:List Supplier
: Procurement
Officer
PlaceOrder()
Sequence Diagram 7
170
: Factory
Manager
: Supplier
GetRawMaterial()
Sequence Diagram 8
171
: Account Officer
: Factory
Manager
: Supplier
GetInfo()
GetInfo()
UpdateRecord()
Sequence Diagram 9
:Supplier Info
172
Appendix-F
Database design
173
Table: Admin
Table: Counter
174
Table : Product
Table : Supplier
175
Table : Quotation
176
Appendix G
User Acceptance Test (Questionare)
177
Appendix G : USER ACCEPTANCE TEST
USER ACCEPTANCE TEST
Project name Integrated Supplier Management System
Objective: To gain feedback from users of PARL Bone Mills
Name:_____________________________
Date: _____________________
Plase mark the points:
5 – Execellent, 4 – Good, 3 – Average, 2 – Poor, 1 –Very Poor
1.
Is the system interface standard and user friendly for management
1
2
3
4
5
use?
2.
Are all the system menues easy to use?
1
2
3
4
5
3.
Are all descriptions and command available in the system?
1
2
3
4
5
4.
Is the system successfully gather technical, sofrware and business
1
2
3
4
5
1
2
3
4
5
slills?
5.
Are all informations about supplier record available for
management?
6.
Is the system meet its purpose to select the right supplier?
1
2
3
4
5
7.
Is the system user friendly?
1
2
3
4
5
8.
Willing to use this system in future?
1
2
3
4
5
9.
Will this system be commercialized?
1
2
3
4
5
10.
Is the system enough to solve the problems regarding supplier?
1
2
3
4
5
11) Other comment_______________________________________________
178
Appendix-H
User Manual
179
USER MANUAL
HOW TO ACCESS THE SYSTEM:
In the system for each user there is unique user name and Password. So each user wants
to access the system have to key in their own user name and password.
USER: Procurement Officer
1. Key In user name and Password
2. It will appear four menus for supplier management
Register Supplier
Supplier Offer
List of Supplier
Approved List
Menu
Menu
menu
Menu
1.Click “Register
1.Click “Supplier
1.Click “List Of
1.Click “Approved
Supplier”
Offer”
Supplier”
List”
2.Enter supplier
2,List of supplier
2.List Of Supplier
2.View Quotation
name, supplier
Quotation list will
will appear
no, Supplier name,
address and phone
appear
3.Select the supplier
Product and
no
3.Select the supplier
name that want to
approved date.
3.Select “Interest of
name from the list
delete
3.Click “Log Out”
product”
that want to delete
4.Click “Add New”
4.If want to make
4.Click “Delete”
button to add new
any changes click
button
supplier
“Reset”
5.Click “New
5.Enter supplier
5. Click “Submit”
Quotation”
name, address and
6.Click “Log Out”
6.Supplier
phone no
Quotation Form will 6.Select “Interest Of
180
appear
Product”
7.Enter quotation no
7.If want to do any
and select supplier
change click
name
”Reset”
8.If want to change
8.Click “Submit”
click “Reset”
9.Click “Log Out”
9.Click “Submit”
10.Click “Log Out”
USER: Warehouse Officer
1. Key In user name and password
2. It will appear two menus.
Update Quantity Menu
Mark Quality Menu
1. Click “Update Quantity”
1. Click “Mark Quality”
2. Select a product that need to update
2. Click on “Quotation no” that wants
3. Click “Update” button.
4. Type the amount of quantity in the
“Total Quantity” box
5. If want to change the quantity click
“Reset” Button.
6. Click “Submit”
to mark the quality
3. One page will appear then just click
the quality.
4. If want to change click “Reset”
button
5. After mark the quality click
“Update” button
6. Click “Log out”
181
USER: Accounts officer
1. Key in User name and Password
2. Page with the menu “Update Outstanding Balance” will appear
3. Select product from the list.”
4. List of outstanding Balance will appear
5. Click on quotation no that want to change
6. Enter quentity and Outstanding Balance
7. If need to make any change click “Reset”
8. Click “Submit”
9. Click “Log out”
User: Managing Director
1. Key in user name and password
2. Select the product from the list.
3. Click “Submit”.
4. Click one of four decision criteria
5. Select one or more supplier name
6. After selecting supplier name if he wants to change it just click “Reset” and select
again
7. Click “Approve” button.
8. One dialog box will appear
9. If he wants to change decision click “Cancel”.
10. If he wants to proceed click “Ok”.
11. From bottom menu click any list that want to check.
12. After taking decision click “Log Out”.
182
SOFTWARE INSTALLATION
•
INSTALL THE APPACHE SERVER WITH XAMPP
What is XAMPP ?
XAMPP is an easy to install Apache distribution containing MySQL, PHP and
Perl. XAMPP is really very easy to install and to use - just download, extract and
start.
XAMPP Supported Platforms
a version for Linux systems (tested for Ubuntu, SuSE, RedHat, Mandrake and
Debian),
a version for Windows 98, NT, 2000, 2003 and XP,
a beta version for Solaris SPARC (developed and tested under Solaris 8),
and a beta version for MacOS X.
This MacOSX and Solaris versions of XAMPP are still in the first steps of
development. Use at you own risk!
Download XAMPP
http://sourceforge.net/project/showfiles.php?group_id=61776&package_id=60
248
XAMPP FAQ
http://www.apachefriends.org/en/faq-xampp.html
XAMPP Addons
http://addons.xampp.org/
XAMPP Screeshots
http://www.apachefriends.org/en/xampp-linux-screenshots.html
183
XAMPP for Linux Packages
The distribution for Linux systems (tested for SuSE, RedHat, Mandrake and
Debian) contains: Apache, MySQL, PHP & PEAR, Perl,ProFTPD, phpMyAdmin,
OpenSSL, GD, Freetype2, libjpeg, libpng, gdbm, zlib, expat, Sablotron, libxml,
Ming, Webalizer, pdf class, ncurses, mod_perl, FreeTDS, gettext, mcrypt, mhash,
eAccelerator, SQLite and IMAP C-Client.
Installing XAMPP in Debian
Download XAMPP Latest version from the following link
http://sourceforge.net/project/showfiles.php?group_id=61776&package_id=60
248
At the time of writing this article XAMPP version is 1.5.3a
#wget http://kent.dl.sourceforge.net/sourceforge/xampp/xampp-linux1.5.3a.tar.gz
Now you should be having xampp-linux-1.5.3a.tar.gz file in your downloaded
location
Go to a Linux shell and login as root:
$su Extract the downloaded archive file to /opt
#tar xvfz xampp-linux-1.5.3a.tar.gz -C /opt
XAMPP is now installed below the /opt/lampp directory.
Start XAMPP Server
To start XAMPP simply call this command:
#/opt/lampp/lampp start
Starting XAMPP for Linux 1.5.3a...
XAMPP: Starting Apache with SSL (and PHP5)...
XAMPP: Starting MySQL...
XAMPP: Starting ProFTPD...
XAMPP for Linux started.
Test Your XAMPP Installation
184
OK, that was easy but how can you check that everything really works? Just type
in the following URL at your favourite web browser:
http://localhost
XAMPP Security Configuration
As mentioned before, XAMPP is not meant for production use but only for
developers in a development environment. The way XAMPP is configured is to be
open as possible and allowing the developer anything he/she wants. For
development environments this is great but in a production environment it could
be fatal.
Here a list of missing security in XAMPP:
The MySQL administrator (root) has no password.
The MySQL daemon is accessible via network.
ProFTPD uses the password "lampp" for user "nobody".
PhpMyAdmin is accessible via network.
Examples are accessible via network.
MySQL and Apache running under the same user (nobody).
To fix most of the security weaknesses simply call the following command:
#/opt/lampp/lampp security
It starts a small security check and makes your XAMPP installation more secure.
Start And Stop Server Services
start
Starts XAMPP.
stop
Stops XAMPP.
restart
185
Stops and starts XAMPP.
startapache
Starts only the Apache.
startssl
Starts the Apache SSL support. This command activates the SSL support
permanently, e.g. if you restarts XAMPP in the future SSL will stay activated.
startmysql
Starts only the MySQL database.
startftp
Starts the ProFTPD server. Via FTP you can upload files for your web server (user
"nobody", password "lampp"). This command activates the ProFTPD
permanently, e.g. if you restarts XAMPP in the future FTP will stay activated.
stopapache
Stops the Apache.
stopssl
Stops the Apache SSL support. This command deactivates the SSL support
permanently, e.g. if you restarts XAMPP in the future SSL will stay deactivated.
stopmysql
Stops the MySQL database.
stopftp
Stops the ProFTPD server. This command deactivates the ProFTPD permanently,
e.g. if you restarts XAMPP in the future FTP will stay deactivated.
security
Starts a small security check programm.
For example: To start Apache with SSL support simply type in the following
command (as root):
186
#/opt/lampp/lampp startssl
You can also access your Apache server via SSL under https://localhost.
Important Configuration Files And Directories
opt/lampp/bin/ - The XAMPP commands home. /opt/lampp/bin/mysql calls for
example the MySQL monitor.
/opt/lampp/htdocs/ - The Apache DocumentRoot directory.
/opt/lampp/etc/httpd.conf - The Apache configuration file.
/opt/lampp/etc/my.cnf - The MySQL configuration file.
/opt/lampp/etc/php.ini - The PHP configuration file.
/opt/lampp/etc/proftpd.conf - The ProFTPD configuration file. (since 0.9.5)
/opt/lampp/phpmyadmin/config.inc.php - The phpMyAdmin configuration file.
If you want to confiure apache2 you have to use /opt/lampp/etc/httpd.conf(If
you want to change Apache DocumentRoot directory you can chage in this file).If
you want to configure namebased and ip based virtual hosts check here
If you want to configure proftpd check here
If you want to configure mysql check here
Stopping XAMPP
To stop XAMPP simply call this command:
#/opt/lampp/lampp stop
You should now see:
Stopping LAMPP 1.5.3a...
LAMPP: Stopping Apache...
LAMPP: Stopping MySQL...
LAMPP: Stopping ProFTPD...
LAMPP stopped.
And XAMPP for Linux is stopped.
Uninstall XAMPP From your Machine
187
To uninstall XAMPP just type in this command
#rm -rf /opt/lampp
188
Appendix I
Sample Documents
Download