Thesis on System Analysis and Design

8/22/2019 Thesis on System Analysis and Design

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CHAPTER I

COMPANY PROFILE

Company Name: MedCheck Pharmacy

MedCheck Pharmacy is coined from the words medical and check which in

turn means being approved for offering the RIGHT medicine.

Company Location:

Main Office: Governor Pack Road, Baguio City, 2600, Benguet

Magsaysay Branch: Rillera Building, Magsaysay Avenue, Baguio City, 2600, Benguet

Session Branch: Abellera Building, Session Road, Baguio City, 2600, Benguet

Contact Details:

Main Office: 074 654 3210 / 0927-123-9876

Magsaysay Branch: 074 442 4310 / 0915789043

Session Branch: 074 229 9087 / 09168907654

Vision:

To be one of the most preferred medical provider that is trusted by doctors,

recommended by people, and ascertained to secure the health of thenation.

Mission:

To give the society commendable services, to answer expectations, and to satisfy

and delight customer wants and needs through an atmosphere of professionalism,

respect and effective communication.

Objectives:

1. Exceed customer expectation with superior pricing2. Increase the number of customers by more than 30% per year3. Develop the business that itll survive off its own cash flows4. Maintain low overhead and operating costs5. Maintain a competitive edge over other pharmacies


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HISTORY

Having continuously elevating levels of prices in the mid 1990s, Mr. and Mrs.

Cabriol decided to import medicines from different places. The need of their

community, in Baguio City, for affordable medicines pushed them to build

MedCheck, coined from the words Medical and Check. From the name itself, the

pharmacy aims to give medical assistance to the people that is RIGHT and JUST.

People deserve right treatment, afterall.

Since almost all drug stores way back then sell their medicines in bulk, the

owners decided to sell them in lower number of units, thus, starting the tingi-tingi

concept in drug stores. This was decided upon due to the number of people who

wanted to purchase medicine but cannot do so because of its volume and its price.

10 successful years after its establishment, the company decided to put up a

branch in Magsaysay road, same province. But this did not stop MedCheck from

widening its market reach. 5 years after branching out to Magsaysay, MedCheck

established its second and newest branch, nearer to commercial sites, along Session

road.

MedCheck has been known in the market for almost 20 years and have faced

different crisis in this span of time; competitors came, global crisis existed. However,

due to the owners perseverance and its customers trust, MedCheck remained to exist

in the market. Because for them, as long as people need medical products, MedCheck

will always exist.


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PRODUCT LIST AND DESCRIPTIONS

I. Medicines

1. Analgesic- is a drug that's used to relieve pain without causing decreasedconsciousness.

2. Antipyretics- cause the hypothalamus to override an interleukin-inducedincrease in temperature.

3. Non-steroidal anti-inflammatory drugs- are drugs thatprovide analgesic and antipyretic (fever-reducing) effects, and, in higher

doses, anti-inflammatoryeffects.

4. Anesthetic- is a drug that causes anesthesiareversible loss of sensation. Theycontrast with analgesics (painkillers), which relieve pain without eliminating

sensation.

5. Antihistamine- are drugs that combat the histamine released during an allergicreaction by blocking the action of the histamine on the tissue.

6. Antidotes- substance which can counteract a form ofpoisoning7. Antiepileptic- a drug used to treat or prevent convulsions (as in epilepsy)8. Anti-infective- an agent that is capable of acting against infection, either by

inhibiting the spread of an infectious agent or by killing the infectious agent

outright.

9. Anti-migraine- is a medication intended to reduce the effects or intensityofmigraine headache.

10.Anti-neoplastic- are drugs inhibiting or preventing the growth and spread ofneoplasms or malignant cells.

11.Immunosuppressives- are used to prevent the rejection of transplanted organsand tissues, treat autoimmune diseases and other non-autoimmune

inflammatory diseases.

12.Antiseptics- are antimicrobial substances that are applied toliving tissue/skinto reduce the possibility ofinfection, sepsis, or putrefaction.

13.Diuretics- provide a means of forced which elevates the rate ofurination.14.Antianginal- is anydrug used in the treatment ofangina pectoris, a symptom

ofischaemic heart disease.
http://en.wikipedia.org/wiki/Hypothalamushttp://en.wikipedia.org/wiki/Interleukinhttp://en.wikipedia.org/wiki/Analgesichttp://en.wikipedia.org/wiki/Antipyretichttp://en.wikipedia.org/wiki/Anti-inflammatoryhttp://en.wikipedia.org/wiki/Anesthesiahttp://en.wikipedia.org/wiki/Analgesichttp://en.wikipedia.org/wiki/Poisonhttp://en.wikipedia.org/wiki/Migrainehttp://en.wikipedia.org/wiki/Headachehttp://en.wikipedia.org/wiki/Antimicrobialshttp://en.wikipedia.org/wiki/Biological_tissuehttp://en.wikipedia.org/wiki/Skinhttp://en.wikipedia.org/wiki/Infectionhttp://en.wikipedia.org/wiki/Sepsishttp://en.wikipedia.org/wiki/Putrefactionhttp://en.wikipedia.org/wiki/Urinationhttp://en.wikipedia.org/wiki/Medicationhttp://en.wikipedia.org/wiki/Angina_pectorishttp://en.wikipedia.org/wiki/Angina_pectorishttp://en.wikipedia.org/wiki/Angina_pectorishttp://en.wikipedia.org/wiki/Coronary_heart_diseasehttp://en.wikipedia.org/wiki/Coronary_heart_diseasehttp://en.wikipedia.org/wiki/Angina_pectorishttp://en.wikipedia.org/wiki/Medicationhttp://en.wikipedia.org/wiki/Urinationhttp://en.wikipedia.org/wiki/Putrefactionhttp://en.wikipedia.org/wiki/Sepsishttp://en.wikipedia.org/wiki/Infectionhttp://en.wikipedia.org/wiki/Skinhttp://en.wikipedia.org/wiki/Biological_tissuehttp://en.wikipedia.org/wiki/Antimicrobialshttp://en.wikipedia.org/wiki/Headachehttp://en.wikipedia.org/wiki/Migrainehttp://en.wikipedia.org/wiki/Poisonhttp://en.wikipedia.org/wiki/Analgesichttp://en.wikipedia.org/wiki/Anesthesiahttp://en.wikipedia.org/wiki/Anti-inflammatoryhttp://en.wikipedia.org/wiki/Antipyretichttp://en.wikipedia.org/wiki/Analgesichttp://en.wikipedia.org/wiki/Interleukinhttp://en.wikipedia.org/wiki/Hypothalamus


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15.Psychotherapeutic medicines- include medicines used in generalized anxietyand sleep disorders, depressive disorders, obsessive compulsive disorders,

psychotic disorders, etc.

16.Muscle relaxants- group of different drugs that each has an overall sedativeeffect on the body.

17.Gastrointestinal medicines- are used to prevent diseases related to the digestivetract

18.Medicines on the respiratory tract- includes antiasthmatic, antitussives,expectorants, immunoglobulins, etc.

19.Medicines for ears, nose, throat- prescribed by EENT doctors for properprotection of ears, nose and throat for possible diseases.

20.Vitamins- are drugs used primarily for boosting the immune system, keepingthe body protected from diseases.

II. Hospital Materials

1. Abdominal Binder- an item used for low back strains, abdominal hernias,hysterectomies or other post-operative abdominal and torso support.

2. Abdominal Carbon Dioxide Flow Control Cock- an item designed for attachmentto irrigation tubing. May include either a male or a female luer connector.

3. Abdominal Pad- an item used as a dressing to absorb drainage duringoperations and treatment of patients.

4. Abscess Drainage Kit- a group of items consisting of catheter, stylets, dilators,wire guide, needles, connecting tube, and other related items.

5. Absorbent Gauze- a cotton in the form of plain woven cloth, conforming torecognized medicinal standards. It is normally supplied in bolt, fold or roll form.

6. Adhesive Bandage- a compress of absorbent gauze or other suitable material,affixed to a film or fabric, coated with a pressure-sensitive adhesive substance

7. Anesthesia Inhaler- a metal grid, sometimes covered with wire gauze, designedto fit over the mouth and nose of a patient for the administration of anesthesia.

8. Catheter And Tube Bag- an elongated cylindrical or square-shaped containermade of cotton duck.

9. Cotton Tape Roll- a tightly rolled and stitched cylinder which is free of loosethreads and raw edges.


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10.Ankle Brace- an orthopedic appliance designed to support the ankle after injuryor surgical procedures.

11.Automatic Syringe- a device consisting of a barrel, plunger, three-way checkvalve, tubing, and needle. It is designed to draw liquid from a reservoir and

deliver measured amounts to a receiver or to inject parenteral doses.

12.Balloon Catheter Retrieval Sheath- a sterile, disposable device designed to beused for removal of circumferentially ruptured angioplasty balloon catheters

from the puncture site.

13.Bandage- a piece of material, varying in shape and size, applied to body or limb.14.Cardiopulmonary Resuscitation Face Mask- an item designed to cover the

patient's face during the administration of cardiopulmonary resuscitation.

15.Dispensing Needle- an item designed to be attached to an ampule fordispensing a specific medication dosage.

16.Dispensing Pin- a spike used with a rubber stoppered vial for administeringsolutions for injection.

17.Ice Bag- an item used for cold applications.18.Immobilization Extremity Splint Kit19.Inhaler Tube- a rubber or plastic tube, having end connections which connect

oxygen tanks to rebreathing apparatus.

20.Medicinal Nebulizer- a device which employs an air blast in a chamber tovaporize a fluid. The chamber has jets and may have a baffle.

21.Purified Cotton- a bulk absorbent cotton which conforms to recognizedmedicinal standards for purified cotton.

22.Safety Hypodermic Syringe- a sterile, disposable item which consists of a barrel,plunger, and plastic lock hypodermic safety device on syringe.

23.Sterile Surgical Gauze Pad- an absorbable, sterile surgical gauze pad that is x-ray detectable and used invasively in patient.

II. Hygiene-related Products

1. Hair Care Shampoo- Any of various liquid or cream preparations of soap or detergent used

to wash the hair and scalp.


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Conditioner- sometimes called cream rinse, are often used in hair carealongside shampoo, to improve the texture and appearance of human hair.

2. Facial Cleanser Facial scrub and foam- a thick substance which you use to clean the skin on

your face thoroughly

Whitening cream- a substance applied commonly after washing, to remove deadskin and promote whiter skin.

Day cream- applied after washing, to protect skin from UV rays. Facial Toner- applied normally at night to cleanse the skin and shrink the

appearance of pores

3. Underarm care Deodorant- used to prevent underarm perspiration and body odor. Razors- used to eliminate, shave pubic hair4. Feminine Hygiene Products- used to compensate feminine needs

Ex. Sanitary Napkin, Panty liners, Tissues and wipes

5. Oral Care- used to protect, prevent oral diseases, strengthen teeth, etc.Ex. Floss, Mouthwash, Toothbrush, toothpaste

6. Skin Care- used to whiten and protect skin from harmful UV rays.Ex. Lotion, Alcohol, Cream, Hand lotion, sunscreen


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SEQUENCE OF OPERATIONS

The operations of MedCheck pharmacy starts with the Inventory department

wherein they are going to assess the inventories available for sale and the products or

units that are to be restocked. They will then make a list of the things or products

needed and pass it to the Administration for approval. After which, data gathered will

be used for making purchase orders and transact with different laboratories and

suppliers of the products that are sold in the pharmacy. These laboratories include VG

laboratories, FREN group of companies, USANA Medical company (for different types

of medicines); BELLO group of companies, UNILIVER (for cosmetics and other hygienic

products) and 2 other companies, a total of 7 suppliers. There are also 3 contingent

suppliers in case of emergency. The Inventory Department will also transact with the

Finance Department for the budget allotted for the purchase and examine the costs.

The Finance Department will in turn keep a record about the new inventories that are

to be acquired, outflow of cash if the purchase will be paid immediately and/or record

the increase in the accounts payable if it is not paid with cash. The suppliers will send

the ordered products to the main branch and will be received and recorded by the

Inventory department and is allocated to the main branch and its other branches.

One of the major operations of MEDCHECK Pharmacy is the sales operations.

Products are segregated according to their general classification- hospital-related

materials, hygienic products, and Medicines. The sales of the pharmacy are also

classified according to the type of customers (hospitals, retailers, over the counter

customers, and other business establishments). In cases of sales to hospitals, retailers

and other business establishments, requests are received through purchase orders.

After signing contracts and other papers of approval, the pharmacy will deliver the

products to the buyers. The Inventory department will record the sales and the

reduction of inventory. The Finance Department will also record the sales for either

receipt of cash or an increase in the accounts receivable. The products are delivered

through the use of a container van and usually delivered to 7 retailers, 3 hospitals and

3 other business establishments.


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In case of over the counter sales, the products sold will be immediately recorded

as a sale and all other transactions are recorded as cash so no further problems are

encountered, except for returns which are recorded as either a direct loss or addition

to the inventory depending on the case o reason of return and its corresponding action

according to the companys business rules.

Figure 1.1 Major Operations of MedCheck Pharmacy


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BUSINESS RULES

I. Inventory Management1. All drug shipments should be delivered unopened to the pharmacy.2. Purchase returns should be separated from those in stored in the

pharmacy for sale.

3. Inventories are to be accounted and classified through the generalclassifications enlisted in the companys product list.

4. Non-usable and expired drugs are to be stored in a separate area untilfinal disposal.

5. Ifthe manufacturers expiry date states the month and year but not thedate, the expiry date is the last day of the month indicated.

6. Inventory count is to be done monthly and inventory check are to bedone weekly.

7. Inventories are accounted for using the FIFO method.

II. Sale and Disposal1. Sales should be accounted for outright and immediately after

transaction.

2. Sales returns due to non compliance to standards should be stored in anarea, same with those expired, to settle all medicines for final disposal.

3. Bulk sales to hospitals and other smaller drug stores are entitled to 3%percent discount.

4. Accounts and notes receivables (only from wholesale) are subject tointerest at 5% per annum.

5. Senior citizens are entitled to 20% discount on all products.

III. Returning of drugs1. Returned drugs with no receipt, should not be accepted as sales returns.

2. Only those that are returned within 48 hours are entitled for exchange.

3. Returned products (fault of employee, incorrect product given) are entitled

for an exchange for other products initially asked by the customer.


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IV. Records

1. Books, receipts, and invoices are to be kept in the accounting office for

record keeping purposes.

2. Books are to be closed periodically.

3.All purchases, purchase returns, sales, sales returns, disposal are to be

recorded immediately in the books.

V. Operations

1. Operations are done 24 hours a day and 7 times a week.

2. Due to continuous operations, shifting of employees is practiced from7

am-3 pm, 3 pm-11 pm, and 11 pm-7 am.

VI. Branch Transactions

1. Shipments are to be delivered after notification by branch.2. Shipments to branch are to be accounted at cost.3. Branch inventories are only acquired from the main office. Outside

purchases are not allowed.

4. Monthly financial statements are to be reported by the branch to themain office. Financial statements include statement of financial position,

income statement and cash flows.

5. Branch inventories are to be tracked through its monthly incomestatement reflecting the branchs beginning and ending inventories.

6. Branchs income is to be remitted monthly net of branchs commission.7. Branch return of inventories are to be treated the same as the return

from customers.


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CHAPTER II

PROBLEMS AND THEIR BACKGROUND

20 years of existence. MedCheck already existed in the market that long.

However, throughout this span of time, different concerns arose and Inventory

Managementhas been the most difficult to deal with.

Paper based record keeping has always been the norm in our society, for years.

People have been bearing with several issues like reliability, security, and, storage,

that comes with paper based system. Unfortunately, that society includes MedCheck

Pharmacy. MedCheck uses a manual information system to record inventory flows(supplies, inventories that were sold, and those that were disposed) in paper form,

therefore, much resources like paper are being used and, in time, being wasted due to

the number of transactions in its everyday operations. Moreover, having data stores,

like in filing cabinets, brings an unproductive use of storage space. Keeping records in

papers could lead business documentation at risk as well in case of fortuitous events

like fire as there would be no back up. In addition, accounting for all of these,

manually and individually, will not just waste resources, but time and effort too.

Due to its manual-based system, ordering and retrieval of data became more

time-consuming. Response on information requests takes a lot of time because there is

current unavailability of records since files are stored in filing cabinets. There are

chances too that data may not be retrieved which do not just affect other pending

transactions but may also create bad impression to clients as there is poor customer

service.

Another difficulty that is taking place in the business is that operations became

highly labor-intensive than usual. As progress occurs, the entity is force to require

continuous monitoring to ensure that each transaction is accounted for and that

products are maintained at the appropriate quantity. It is also more difficult to share

inventory information throughout the business, because the lack of computerization

makes accessing inventory records a more cumbersome process. What is more


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lamentable is the thought that the time spent monitoring inventory levels could just be

used on more productive activities for the business.

Last but one of the most important factors to consider is that the pharmacy

inventory system relies heavily on the actions of people, making it less reliable and

less accurate due to human error factor. People might forget to record a transaction or

simply may commit inaccurate data on the products being purchased, sold, and

disposed. This results in needless additional orders that increase the business's

inventory carrying costs and, in much crucial circumstances, may lost customers

loyalty and trust.


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PROPOSED SOLUTION

The swift evolution of technology has given society, particularly the business

world, an apparent upshot. Developments are seen even in the least segment of almost

every business entity for the purpose of them becoming up to date. A sound instance

is the gradual modification from manual-based to computer-based information

system.

As a growing pharmacy in the city, MedCheck needs to adapt to this change.

MedCheck needs an Information system that would allow the company to a more

efficient monitoring of the medicine stocks and medical supplies. Status updates of

the medicines and medical supplies will be recorded using perpetual accounting

(Accounting for inventories status after every transaction).

The system should also possess the name of product, date manufactured,

manufacturer and supplier, distributors, and date of expiration. One of the objectives

of this proposal is to lessen the use of unnecessary resources such as paper. One

computer is to be given for each department: Inventory, Administration, and Finance.

These computers should be networked for easy access on inventory status.

Employees (Cashier) are only allowed to input sales data on the system.

Inventory department is entitled to an input-and-read access on inventory flow data.

Finance department is also entitled to an input-and-read access but limited to cash

flow data only. Administration, on the other hand, is only allowed to view information

processed by other departments.

This Information system will not only save time and effort, but will also

conserve resources.


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SCOPE AND DELIMITATION

The coverage of this study is focused on the nature of the activities that Medcheck

undergoes in its daily operation such as recording transactions that the entity is

engaged and accounting for inventories being purchased, sold and disposed in the

course of the accomplished and anticipated dealings. In other words ,this study

merely limits itself on every aspect of the business's undertakings that has an impact

in its performance as a growing entity but primarily focused on MedCheck Pharmacy

as a seller rather than a buyer of merchandise.

The information system provides a basis for recording sales and purchases. It

records the quantity for each item at the end of each period. It encompasses the

inventory system that supplies statements on the businesss previous and current

stocks. These include valuing the inventory, measuring the change in inventory and

planning for future inventory levels. The value of the inventory at the end of each

period provides a basis for financial reporting on the balance sheet. Measuring

changes in inventory that allows the company to determine the cost of inventory sold

during the period. The inventory level and changes allow the company to plan for

future inventory needs.

Consequently, MedCheck business will adopt a general model for their own use.

This means that in the proposed information system, the authorized people must be

able to track sales of a product and match it against their existing inventory to

regulate how much stock they keep to hand and how much it costs them to do so.

Perceptibly, this is necessary for any business in order to run efficiently.

This study is delimited to the preparation, implementation, and

evaluation of a prototype of the MedChecks computer-based information system. It is

centered on the enhancement and not the entire alteration of the previous system that

the business used. Hence, the proposed information system is rather an improved

replica of the old system in an advance, upgraded, comprehensive and time-conserved

manner.


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FEASIBILITY STUDY

I.OPERATIONAL

Operation makes up the daily activities the business is engaged. From dealing

with customers to administering its different departments, operation plays a vital role

in its every move that makes its superiorly essential to bear in mind. Thus, it can

deliberately be assumed that modifying the information system that the business is

currently using leads to certain changes in the structure of the operations of its

everyday undertakings.

Trading the old system and settling for a new one alone would not affirm

betterment of the enterprise. Nevertheless, some major advantages with regards to the

businesss operation are the following: If the intend Information System will be used,

more work will be accomplished by the employees and the use of unnecessary

resources will decrease. To make it more specific, an example of such will be the time

spent for searching or retrieving data from the pharmacys books of records. Instead of

utilizing time for this activity, employees may allocate their time for more beneficial

activities, like serving customers with their needs and wants. Communication in

different departments will become easier not only to the company, but as well as to

their suppliers and distributors, since, only one data monitoring process is circulating

in the business. Monitoring of inventories will then be outright and immediate.

This proposal is not just beneficial for the company itself but to the customers

as well. Due to the decrease in time allotted for different tasks, employees may

transact with customers faster. Delay in providing services will be eliminated.

Therefore, it might lead to an increase customer satisfaction.

Conversely, the information system, if being applied, would not just affect the

operation itself but the people behind the functionality of the business daily

operation. Since, paper-based system is being replaced by computer-based system,

hired employees who are accustomed to human-powered process will have to

undertake skills standard development trainings. On the contrary, multiple benefits


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will be obtain in the light of training the companys like boosting the morale of the

staffs, increasing their productivity and giving the organization the competitive

advantage it needs in these tough economic conditions.

II. TECHNICAL

Putting up an Information System requires a set of resources to make its

purpose possible. Giving up some of these resources is essential to benefit the

company in the long run. Requirements includes: financial, human and technical

resources, all of which are certainly available.

MedCheck pharmacy, with its 20 years of penetration in the market, it can

absolutely afford to compensate the financial needs of the application of this system

since the companys outflow of financial resources is way less than its inflows. Man

power needs, on the other hand, are outright available since the system is to be

operated by the current employees themselves and maintenance are to be performed

by the analyst and the programmer. On the part of the technical resources, six

desktop computers worth P25,500 each (specifications can be seen in cost and benefit

analysis), three point of sale receipt printers for the three counters valued at P4000,

three data printers for each departments which cost P3300 and one wholesale/retail

printer for bulk and special form of sales worth P10,500 and any technical-related

needs can be acquired easily with the dependable supplier at point of purchase.

III. SCHEDULE

Figure 2.1 Assumed Time Table for Information System Availability


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The Information System, as estimated, will be available in 5-6 months. After

this period, data and other necessary information may be accessed outright. However,

maintenance is to be offered whenever errors and changes occur.

Being an investment, the information system is a long term investment. It isexpected to benefit the company until the time that advancements that are more

suitable to new needs of the company exist. By that time, it will be the decision of the

company whether to retain the old Information system and update changes or to fully

alter it.

IV. ECONOMIC

The Information System will benefit the company economically. Basically, as

stated on the problems encountered by the company, paper resources and efforts are

used all the time. However, this information system will decrease usage of such

resources, therefore minimizing costs incurred. In the short run, the company might

not be able to realize costs reduced since such resources are at a minimal effect

compared to the information system.

Economically speaking, application of the information system is a matter of

measuring opportunity cost: either you give up capital for the moment and gain

benefit in the long run or you spend money at a lower cost for the moment and let it

accumulate for the future. This proposal will minimize future costs, since information

systems are expected to give benefit for a long term and will serve as an investment at

the same time.

Revenues, on the other hand, are expected to flow faster into the company. Using

manual-based information system needs a lot of time to facilitate transactions with

customers, thus, making revenues be realized below par. Introduction of this system

will increase the rate of realization of revenues since faster accommodation of

customers will occur.

In line with the cost benefit analysis that is presented below, the benefit amounted

to P747,400 exceeds cost of P 482,400 which significantly denotes that the proposed

system is considered necessarily to be pursued. Economic effects of this proposal are

not expected to be realized outright. Taking to consideration that it is an investment,

benefits will took effect in gradually.


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COST BENEFIT ANALYSIS

I. COSTS

DETAILS AMOUNTS

Initial Costs

Research Cost 10,000

Computer

*Purchase Price of six computers

**Purchase Price of seven printers

Freight and handling costs

P153,000

P 32,400

7,000

Physical Installation and assembly cost 8,000 200,400

Costs Related to the System

Labor and Development Costs

System analyst fee 100,000

Programmer fee 120,000 220,000

Cost of Testing 17,000

Other Costs

Staff training 10,000

Maintenance 15,000

Additional Operational costs 10,000 35,000

TOTAL COSTS P482,400

(Note: The values are only estimates using their present values and fair market values.

The values are estimated at the end of the first accounting period when the system is

applied.)


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Research Costs- a research is done to know if the new technological process thatwill be introduced to the business would bring future and sustainable economic

benefits. This research also involves technological, economical, and operational

feasibility studies and cost benefit analysis.

Cost of computer and printer- the purchase price of the computer including printerplus other directly attributable costs like installation cost, and delivery and

handling costs. At the end of the period, the value of the new computer will be

reduced due to depreciation. The carrying amount of the computer is computed by

subtracting the depreciation from the purchase price. But since the fair market

value is used, the value shown above is at its prevailing market value at the end of

the period. The cost shown above is the cost of 6 computers. Each computers are

bought at a price of P25,500

Installation and Assembly Costs- this is the cost incurred while making the asset ofthe computer available for use.

Labor and development Cost- this is the cost incurred for the services of a systemanalyst and the programmer. The amounts are totaled for the period of 6 months

which is the period estimated for the completion of the system.

Cost of Testing- this is incurred in the series of trials to test if the system is alreadyoperational and it is also used to check errors in the system so they would be

corrected.

Staff training- before the actual performance of the system, the staff, especially theone responsible for the stocks or inventories should be trained on the proper usage

of the system. This is very essential to prevent errors. The cost is incurred for thepayment of the trainer. The manager and other employees related to the

inventories will also be trained.

Maintenance- this is essential to prevent fast deterioration and obsolescence of thecomputer. It depends on the discretion of the management whether to let the


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analyst and programmer to be on this service or to outsource another personnel in

maintaining the system.

Additional Operational Costs- for the additional computer or the longer hours usedfor the system, of course, other expenses like electricity would increase. The value

presented is the estimated increased in the expense for the period.

II. BENEFITS

Operational Benefits

Return on Investment P200,000

Increase in market 60,000 P260,000

Intangible benefits

Goodwill P250,000

Safety 15,000

Error prevention 10,000

Speed 12 ,000 287,000

New Asset 200,400

TOTAL P747,400

( Note: the monetary values are just estimates based on their prevailing market rate)

Return on investment- this is simply the impact of the new developments appliedto the business. This will determine if the revenues generated by the pharmacy

with the use of the new system would exceed the costs.

Increase in Market- due to fast and reliable customer service, it is expected thatthe number of customers would increase.

Safety- Once data is entered into a computer, it is safe. The chances of losing dataare remote, especially when you perform regular system backups. In manual

systems, paper pads can be lost or damaged more easily.


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Error prevention- Cutting down on errors made is an advantage that the sytem canbring to the pharmacy.

Speed- Using codes can quicken the way in which the pharmacy operates. Codeshelp keep better track of these essentials by processing quickly and precisely. Also,

when taking inventory, they not only reduce the amount of time to calculate per

item, they also can reduce the amount of employees required to work on

calculating the stock.

Goodwill- this will be increased due to strong brand name, good customer relationsbecause their needs will be addressed immediately because of the new system,

good employee relations and any patents or proprietary technology. Goodwill also

determines the relationship of the business to its suppliers. This is very important

because this will reflect the sales of the pharmacy and how much customers trust

it.

New Asset- because the computers are new, there will be an increase in the assetof the entity. Also, it is expected that the asset will perform effectively and

efficiently at a long period of time.

*Computers to be purchased together with their specifications and corresponding

costs are shown below:

Processor (CPU):Intel Core I3 3.1 Ghz P5,800

Motherboard: ASUS P8H61-MLE Motherboard P4,700

Ram: 2 Gb DDR3 Ram CORSAIR P 850

Hard Disk: 500 Gb Sata HDD Western Digital P4,050

Optical Drives: Sony 24x DVD Writer Sata P1,200

Keyboard: Logitech Classic Keyboard P 350

Mouse: Logitech M100 Optical Mouse USB P 450

Monitor: 15.6 LED Monitor AOC P4,150

Cabinet: Intex Flame ATX Cabinet With Front USB and Sound P 950

Operating System: Microsoft Windows XP Professional P3,000

Cost per Computer 25,500

Number of computers to be purchased 6

Total costs of computers 153,000


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**Printers with their respected costs are presented on the following:

Three Point-of-sale printersProduct Name : Epson TM-U220B Dark Grey Dot Matrix Receipt Printer

Cost of printer P 4,000

Number of printers 3

Total costs of printers P12,000

One wholesale /retail printerProduct Name : Epson LQ-300+ II P10,500

Three Data printersProduct Name : Epson Workforce 500 all-in-on

Cost of printer P 3,300

Number of printers 3

Total costs of printers P9,900

Total cost of printers (P12,000 + P10,500 + P9,900) P32,400
http://winopen%28%27/sna/productdetail.aspx?c=us&l=en&s=biz&cs=555&sku=A0167771&~lt=popup%27,%27popup575x505%27,%27WIDTH=575,HEIGHT=500,RESIZABLE=YES,SCROLLBARS=YES,TOOLBAR=NO,LEFT=0,TOP=20%27);http://www.officemax.com/catalog/sku.jsp?skuId=21694873http://www.officemax.com/catalog/sku.jsp?skuId=21694873http://www.officemax.com/catalog/sku.jsp?skuId=21694873http://winopen%28%27/sna/productdetail.aspx?c=us&l=en&s=biz&cs=555&sku=A0167771&~lt=popup%27,%27popup575x505%27,%27WIDTH=575,HEIGHT=500,RESIZABLE=YES,SCROLLBARS=YES,TOOLBAR=NO,LEFT=0,TOP=20%27);


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CHAPTER III

Context Diagram


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Diagram 0


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Level 1 (1.0)


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Level 1 (2.0)


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DATA DICTIONARY

ACCOUNT CASH SALES

a) Process Name: Account Cash Salesb) Description: Accounting for Cash Sales is a basis of the invoice price to be billed

to the customer by computing the amount due net of discounts taken

c) Process No.: 2.2d) Process Description:

Input Data Flow(s): Gross Amount Due Output Data Flow(s): Net Amount Due Multiply Gross Amount Due by (1- Cash Discount) and by (1-Special

Discounts)

ACCOUNT CREDIT CARD TRANSACTIONS

a) Process Name: Account Credit Card Transactionsb) Description: Accounting for Credit Card Transactions includes the receipt of

actual cash payment of the entity from authorized banks

c) Process No.: 2.3d)

Process Description: Input Data Flow(s): Gross Amount Due Output Data Flow(s): Payment by Bank If payment by bank is made, transaction is then accounted for with the same

treatment as cash sales

ACCOUNTS RECEIVABLE

a) Descriptions: Reflects the companys right to collect against other entities. b) Alternate name(s): Sales on Accountc) Data structure: From 4.0 to 5.0d) Volume and Frequency: Approximately once a week

ACCOUNT RECEIVABLES

a) Process Name: Account Receivables


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b) Description: Accounting for Receivables includes the recognition of thecustomers obligation and the right of the entity to collect an amount inclusive

of the gross amount due subject to interest.


Input Data Flow(s): Gross Amount Due Output Data Flow(s): Net Amount Due Multiply Gross Amount Due by (1+Interest Rate)

ACCOUNTING DATA

a) Description: Data that supports the accountability of a given transaction with

inventories iinvolved in it.

b) Alternative name: Assess value of data

c) Origin: Inventory, Cash Sales, Accounts Recievable

d) Destination: Produce Reports

e) Data Structure:

ACCOUNTING DATA = {AMOUNT} + {PRODUCT}

AMOUNT = {NUMBERS}

PRODUCT = PRICE + PRODUCT DESCRIPTION + PRODUCT QUANTITY

PRICE = {NUMBERS}

QUANTITY = {NUMBERS}

NUMBERS = {0-9)

LETTERS = {A-Z}

f) Volume and frequencyonce a day

ADDITIONAL INVENTORY DATA

a) Description: Data that represents the replenishment or new stocks added to

inventories on hand

b) Alternative name: Purchases, Purchased inventory

c) Origin: Update Inventory

d) Destination: Inventory

e) Data Structure:


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ADDITIONAL INVENTORY DATA= [SUPPLIER NAME/ SUPPLIER ACCOUNT] +

{PRODUCT PURCHASED} + DATE + BILL ADDRESS + AMOUNT

PRODUCT PURCHASED= {PRODUCT ORDERED}

PRODUCT ORDERED= {PRODUCTS}

PRODUCTS= PRODUCT NAME + STOCK NUMBER + DESCRIPTION +

QUANTITY PURCHASED + PRICE

f) Volume and Frequency: three times a week

ALLOCATE INVENTORY

a) Process Name: Allocate Inventoryb) Description: Allocation of Inventory is concerned with the segregation of

inventory to be delivered to the branch accounted for as Investment in Branch


Input Data Flow(s): Inventory Status Output Data Flow(s): Shipments to Branch

AUTHORIZED BANK

a) Description: Authorized Banks are external entities that facilitates payment inbehalf of credit card user-customers.

b) Alternate name(s): Financial Institutionc) Input Data Flow(s): -d) Output Data Flow(s): Credit Card Approval

BRANCH

a) Description: Branches are external entities in substance but internal in form.They are treated as extensions of the Main Office

b) Alternate name(s): Extensionc) Input Data Flow(s): Shipments to Branchd) Output Data Flow(s): Branch Reports; Branch Inventory Returns

BRANCH INVENTORY RETURN

a) Description: these are data pertaining sending back inventories coming

specifically from the branch.


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b) Alternative name: Branch trade returns

c) Origin: Branch

d) Destination: Update Inventory

e) Data Structure:

BRANCH INVENTORY RETURNS= [BRANCH NAME/BRANCH ACCOUNT] +

{PRODUCTS RETURNED} + DATE

DATE={NUMBERS|LETTERS}

BRANCH NAME= {LETTERS}

BRANCH ACCOUNT= {NUMBERS|LETTERS}

PRODUCTS RETURNED= {PRODUCTS}

PRODUCT= STOCK NUMBER+PRODUCT NAME + DESCRIPTION +

QUANTITY + PRICE

STOCK NUMBER= {NUMBERS}

PRODUCT NAME={LETTERS}

DESCRIPTION={NUMBERS|LETTERS}

QUANTITY={NUMBER}

PRICE={NUMBER}

f) Volume and Frequency: once or thrice in every 3 weeks

BRANCH REPORTS

a)Description: a set of financial statements that ,as a whole, are reported in themain entity by its branch which is helpful in monitoring the branchs

performance and issuing combined reports

b)Alternate name(s)- Local office reportsc) Input data flows: Branchd)Output data flows: Produce Reportse) Data structure -

BRANCH REPORTS = [BRANCH NAME|BRANCH ACCOUNT]+ [FINACIAL

STATEMENT] + DATE

BRANCH NAME={LETTERS}

BRANCH ACCOUNT=NUMBER+LETTERS


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FINACIAL STATEMENT= {STATEMENT OF FINACIAL POSITION} +{

STATEMENT OF COMPREHENSIVE INCOME }+ {STATEMENT OF

CHANGES IN EQUITY}+ STATEMENT OF CASH FLOWS}

STATEMENT OF FINANCIAL POSITION= ASSETS + LIABILITIES+HOME

OFFICE CURRENT ACCOUNT

STATEMENT OF COMPREHENSIVE

INCOME=REVENUE+EXPENSES+[PROFIT]

STATEMENT OF CHANGES IN EQUITY=HOME OFFICE CURRENT

ACCOUNT+[PROFIT|LOSS]

STATEMENT OF CASHFLOWS= INFLOWS+OUTFLOWS

ASSETS= {LETTERS+NUMBERS}

LIABILITIES= {LETTERS+NUMBERS}

HOME OFFICE CURRENT ACCOUNT=LETTERS+NUMBERS

REVENUE={LETTERS+NUMBERS}

EXPENSES={LETTERS+NUMBERS}

PROFIT={LETTERS+NUMBERS}

INFLOWS= {LETTERS+NUMBERS}

OUTFLOWS={LETTERS+NUMBERS}

DATE=MONTH+DAY+YEAR

MONTH={JANUARY-DECEMBER}

DAY={NUMBER}

YEAR={NUMBER}

LETTERS={A-Z}

NUMBERS={0-9}

f) Volume and frequencyonce every month

CASH RECEIPTS

a) Description-The payment of the customers for their purchases they bought.b) Alternative name-Proceeds, Revenuec) Origin- Manage Salesd) Destination- Cash Sales


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e) Data structure :CASH RECEIPT= INVOICE NUMBER+INVOICE DATE+(CUSTOMER

NAME)+{PRODUCT}+AMOUNT +(PAYMENT METHOD)

INVOICE NUMBER={NUMBER}

INVOICE DATE=MONTH+DAY+YEAR


DAY={NUMBER}

YEAR={NUMBER}

CUSTOMER NAME=GIVEN NAME+MIDDLE NAME+SURNAME

GIVEN NAME={LETTERS}

MIDDLE NAME={LETTERS}

SURNAME={LETTERS}

PRODUCT=PRODUCT NAME+DESCRIPTION+QUANTITY

ORDERED+PRICE

QUANTITY ORDER={NUMBER}

PRICE= {NUMBER}

AMOUNT=[CASH|CREDIT CARD]

PAYMENT METHOD=[CHECK I ACCONTS RECEIVABLE I

CASH|CREDIT CARD]

LETTERS={A-Z}

NUMBERS={0-9}

CASH RECEIPTS={CASH RECEIPT}

f) Volume and Frequency : Approximately 75 times an hour (over the countersales) and once a week (wholesale)

CASH SALES

a) Descriptions: Includes total revenue earned, inventory sold, and paymentreceived from customers

b) Alternate name(s): Salesc) Data Structure: From 4.0 to 5.0d) Volume and Frequency:; Approximately 75 per hour and once a week


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e) Data Structure:

CASH SALES=NET AMOUNT DUE

NET AMOUNT DUE=QUANTITY OF THE INVENTORY+{PRODUCT

NAME}+LIST PRICE + {DEDUCTION OF DISCOUNTS TO SENIOR

CITIZENS AND OTHER SPECIAL CUSTOMERS}

DEDUCTION OF DISCOUNTS TO SENIOR CITIZENS AND OTHER

SPECIAL CUSTOMERS=GROSS AMOUNT+RELATED DISCOUNT

RELATED DISCOUNT={NUMBERS}

GROSS AMOUNT={NUMBERS}

PURCHASE NUMBER = {NUMBERS}

PRODUCT = PRODUCT NUMBER + [ PRODUCT NAME/ PRODUCT

DESCRIPTION ] + QUANTITY ORDERED + PRICE

PRODUCT NAME = {LETTERS}

PRODUCT DESCRIPTION = {LETTERS}

QUANTITY ORDERED = {NUMBERS}

PRICE = {NUMBERS}

LETTERS = {A-Z}

NUMBERS = {0-9}

f) Volume and Frequency: Approximately 75 times an hour

CHECK INVENTORY

a) Process Name: Check Inventoryb) Description: Checking of Inventory includes verification of orders availability on

the companys currently held inventories available for sale.


Input Data Flow(s): Order RequestStock Request

Inventory Status

Output Data Flow(s): Notice of Order UnavailabilityAvailable Ordered Data


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IF Order is in InventoryTHEN Add Order to Available Orders for Confirmation

COMPUTE SALES

a) Process Name: Compute Salesb) Description: Computing of Sales includes the usage of the list price per product

and quantity ordered by the customer resulting to the gross amount receivable

from customers


Input Data Flow(s): Sales Confirmation Output Data Flow(s): Gross Amount Due Multiply list price per product by the quantity ordered

CONFIRM SALE OF INVENTORY

a) Process Name: Confirm Sale of Inventoryb) Description: Once the system verifies that orders are available, it should notify

the customer for confirmation and account inventories to be sold as reserved.


Input Data Flow(s): Available Ordered DataValidated Order Data

Output Data Flow(s): Purchase Confirmation Reserve/Stockpile Validated Order Data

COMBINED FINANCIAL STATEMENT

a) Description: financial statement that brings together the assets, liabilities, networth, and operating figures of two or more affiliated entities which contributesto the determination of the businesss stand at a given time.

b) Alternate name(s)Combined reports

c) OriginProduce Report

d) DestinationManager, Finance


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e) Data structure :

CONSILIDATED FINANCIAL REPORTS = BANK STATEMENT + SALES +

CASH FLOWS + INVENTORY

BANK STATEMENTS = CASH DEPOSITS + CASH WITHDRAWALS

CASH DEPOSIT = {NUMBERS}

CASH WITHDRAWALS = {NUMBERS}

LETTERS={A-Z}

NUMBERS={0-9}

f) Volume and frequencyonce every month

CREDIT CASH APPROVAL

a) Description- a payment card is electronically linked to an account or accounts

belonging to the cardholder. These accounts may be deposited in advance.

b) Alternative name: Charge card payment, Stored Value Card

c) Origin -Authorized Bank

d) Destination- Manage Sales

e) Data structure :

CREDIT CARD PAYMENT=INVOICE DATE+CUSTOMER

NUMBER+[COMPANY NAME|ADDRESS]+ACCOUNT NAME

+AMOUNT+TYPE OF CARD+OFFICIAL RECEIPT NUMBER

INVOICE DATE= MONTH+DAY+YEAR


DAY={NUMBER}

YEAR={NUMBER}

CUSTOMER NUMBER= {NUMBER|LETTER}

COMPANY NAME=COMPANY NAME+COMPANY SLOGAN

COMPANY ADDRESS=ADDRESS

ADDRESS= (P.O. BOX NUMBER) + STREET + CITY +(COUNTRY) +

ZIPCODE

AMOUNT=ACCOUNT CODE+AMOUNT

TYPE OF CARD= [VISA/MASTERCARD/OTHERS]


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ACCOUNT NAME=NAME OF CUSTOMER+ACCOUNT

NUMBER+EXPIRATION DATE+SIGNATURE OF PAYOR

NAME OF CUSTOMER=GIVEN NAME+MIDDLE NAME+SURNAME



SURNAME={LETTERS}

CREDIT CARD PAYMENTS={CREDIT CARD PAYMENT}

LETTERS={A-Z}

NUMBERS={0-9}

f) Volume and Frequency : Approximately thrice a week

CUSTOMERS

a) Description: Customers are external entities that are considered as the blood ofthe business. They are the end users and consumers of the products the

business offers.

b) Alternate Names: Clientsc) Input Data Flow(s): Invoiced) Output Data Flow(s): Sales returns, payment

REDUCTION RECEIVABLE

a) Description: a data that updates the records of account receivables that have

been canceled due to customers payment that occur after a certain period o

time.

b) Alternative name: Credit Memo for Accounts Receivable

c) Origin: Update Sales

d) Destination: Account Receivable

e) Data Structure:

GROSS AMOUNT DUE=QUANTITY OF THE INVENTORY+{PRODUCT

NAME}+LIST PRICE

PURCHASE NUMVER = {NUMBERS}




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PRICE = {NUMBERS}

LETTERS = {A-Z}

NUMBERS = {0-9}

f) Volume and Frequency: Thrice every one week

FINANCE

a) Description: The Finance Department is the one responsible for managing thecompanys cash flows.

b) Alternate name(s): Accountingc) Input Data Flow(s): Combined Financial Reportsd) Output Data Flow(s): -

INVENTORY

a) Descriptions: Inventories are merchandise bought from suppliers that are to besold to other entities

b) Alternate name(s): Merchandisec) Data Structure: From 2.0 to 5.0d) Volume and Frequency: Approximately 75 times per hour

INVENTORY REDUCTION

a) Description-The data that is send to inventory to inform the data store aboutthe removal of inventory due to defective and expired stocks.

b) Alternate name(s)Decrease, Lessenc) OriginUpdate Inventoryd) DestinationInventorye) Data Structure

INVENTORY REDUCTION = PRODUCT CODE+PRODUCT NAME+

QUANTITY

PRODUCT CODE={NUMBERS+LETTERS}

PRODUCT NAME= {LETTERS}


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LETTERS={A-Z}

NUMBERS={0-9}

f) Volume and frequencyonce every week

GROSS AMOUNT DUE

a) Description: Data that concerns with the aggresgate outstsanding amount owed

by the customer to the entity due to compliance of past transactions

b) Alternative name: Aggregate sales amount

c) Origin: Compute Sales

d) Destination: Account Cash Sale, Account Receivable, Account Credit Card Sale

e) Data Structure:

GROSS AMOUNT DUE={ORDER DESCRIPTION}







PRICE = {NUMBERS}

LETTERS = {A-Z}

NUMBERS = {0-9}

f) Volume and Frequency: Approximately 75 times an hour (over the counter

sales) and once a week (wholesale)

INVENTORY SOLD

a) Description: Inventories sold are deductions to currently held inventories

available for sale.

b) Alternative name: Sales

c) Origin: Order Inventory



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e) Data Structure

INVENTORY SOLD = ORDER STATUS + { PRODUCT } + QUANTITY

ORDERED


DESCRIPTION ]

PRODUCT NUMBER = {NUMBERS}


PRODUCT DESCRIPTION {LETTERS}


LETTERS = {A-Z}

NUMBERS = {0-9}



INVENTORY STATUS

a) Description: Inventory status contains data that reflects the condition of the

inventories.

b) Alternative name: Stock condition

c) Origin: Inventory

d) Destination: Order Inventory

e) Data Structure

INVENTORY STATUS = { PRODUCT} + QUANTITY AVAILABLE



QUANTITY AVAILABLE= PRODUCT LIST + QUANTITY

PRODUCT LIST = {LETTERS}


NUMBERS = {0-9}




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INVOICE

a) Description- A business document issued any time when sale takes place.

b) Alternative name- Bill, Proof of Purchase

c) Origin- Manage Sales

d) Destination : Customers

e) Data structure :

INVOICE=INVOICE NUMBER+ISSUED DATE+SALES NUMBER+COMPANY

NAME+COMPANY ADDRESS+(CUSTOMER

NAME)+{PRODUCT}+AMOUNT

INVOICE NUMBER={NUMBER}

INVOICE DATE=MONTH+DAY+YEAR


DAY={NUMBER}

YEAR={NUMBER}




ZIPCODE




SURNAME={LETTERS}

PRODUCT=PRODUCT NAME+PRODUCT CODE+PRODUCT

TYPE+PRICE+EXTENTED PRICE+VAT


PRICE= {NUMBER}

VAT= PERCENTAGE OF ORDERED PRODUCT


LETTERS={A-Z}

NUMBERS={0-9}

INVOICES= {INVOICE}

f) Volume and Frequency : Approximately once a week


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ISSUE INVOICE

a) Process Name: Issue Invoiceb) Description: Issuance of Invoices is the same as billing the customer the

amount due net of discount or inclusive of interest.


Input Data Flow(s): Net Amount Due Output Data Flow(s): Invoice

MANAGER

a) Description: A Manager is the one responsible for planning, controlling,operating, and leading the company in decision making.

b) Alternate name(s): Head Operatorc) Input Data Flow(s): Combined Financial Reportsd) Output Data Flow(s): -

MANAGE SALES

a) Process Name: Manage Salesb) Description: Manage Sales is concerned with the receipt of payment from

customers and the appropriate treatment for payment whether subject to

discount or interest, etc.


Input Data Flow(s): Sales confirmationPayment

Credit card Approval

Output Data Flow(s): InvoiceCash receipts

Receivables


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NET AMOUNT DUE

a) Description: Data that concerns with the amount owed by the customer to the

entity due to compliance of past transactions net of any discounts and balance

adjustment

b) Alternative name: Net Sales

c) Origin: Account cash sales, account receivable

d) Destination: Issue invoice

e) Data Structure:

NET AMOUNT DUE=QUANTITY OF THE INVENTORY+{PRODUCT

NAME}+LIST PRICE + {DEDUCTION OF DISCOUNTS TO SENIOR

CITIZENS AND OTHER SPECIAL CUSTOMERS}

DEDUCTION OF DISCOUNTS TO SENIOR CITIZENS AND OTHER

SPECIAL CUSTOMERS=GROSS AMOUNT+RELATED DISCOUNT

RELATED DISCOUNT={NUMBERS}

GROSS AMOUNT={NUMBERS}







PRICE = {NUMBERS}

LETTERS = {A-Z}

NUMBERS = {0-9}



ORDER INVENTORY

a) Process Name: Order Inventoryb) Description: Order of Inventory is the process concerned with the receipts of

orders from customers and the actual processing of orders, checking,

confirmation, and recording.


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Input Data Flow(s): Order RequestInventory Status

Stock Request

Output Data Flow(s): Purchase ConfirmationSales Confirmation

Inventory Sold

ORDER REQUEST

a) Description: Order requests are products demanded by customers with the

willingness and ability for purchaseb) Alternative name: Purchase demand

c) Origin: Customers


e) Data Structure

ORDER REQUEST = ORDER NUMBER + ORDER DATE [CUSTOMER

NAME /CUSTOMER ACCOUNT] + SHIP ADDRESS + BILL

ADDRESS + {PRODUCT} + AMOUNT

ORDER NUMBER = {NUMBERS}

ORDER DATE = MONTH + DAY + YEAR

MONTH = {JANUARYDECEMBER}

DAY = {NUMBERS}

YEAR = {NUMBERS}

CUSTOMER NAME = FAMILY NAME + GIVEN NAME + MIDDLE NAME

CUSTOMER ACCOUNT = {NUMBERS}

SHIP ADDRESS = ADDRESS

ADDRESS = STREET + CITY + [ STATE/PROVINCE ] + (COUNTRY) +

ZIPCODE

BILL ADDRESS = ADDRESS

ADDRESS = STREET + CITY + [ STATE/PROVINCE ] + (COUNTRY) +

ZIPCODE


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PRODUCT DESCRIPTION = {{LETTERS}

PRODUCT NUMBER = {NUMBER}


PRICE = {NUMBERS}

LETTERS = {A-Z}

NUMBERS = {0-9}

ORDERS = {ORDER}



PAYMENT

a) Description -Payment is the settlement of a customers obligation to an entityon financial basis

b) Alternative name Settlementc) Origin-Customerd) Destination : Manage Salese) Data structure:

PAYMENT=PAYMENT INVOICE NUMBER+AMOUNT+DATE+ PAYMENT

METHOD +CUSTOMER NAME+{PRODUCTS}+ APPROVAL OF

RECEIVER

PAYMENT INVOICE NUMBER={NUMBER}


DATE=MONTH+DAY+YEAR


DAY={NUMBER}

YEAR={NUMBER}

PAYMENT METHOD=[ACCONTS RECEIVABLE I CASH|CREDIT CARD]





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SURNAME={LETTERS}

PRODUCT=PRODUCT CODE+PRODUCT NAME+PRODUCT

DESCRIPTION+QUANTITY ORDERED+PRICE+VAT

PRODUCT CODE={NUMBERS}


PRICE= {NUMBER}

VAT= PERCENTAGE OF ORDERED PRODUCT

LETTERS={A-Z}

NUMBERS={0-9}

PAYMENTS={PAYMENT}

f) Volume and Frequency: Approximately 75 times an hour (over the countersales) and once a week (wholesale)

PRODUCE REPORTS

a) Process Name: Produce Reportsb) Description: Producing of Reports includes the production of financial

statements such as Statement of Financial Position, Income statement and

Statement of Cash Flows


Input Data Flow(s): Branch ReportsAccounting Data

Output Data Flow(s): Combined Financial Reports

PURCHASE CONFIRMATION

a) Description: Data that concerns with the verification of orders initially placed by

customers

b) Alternative name: Acquisition verification

c) Origin: Order Inventory

d) Destination: Customers

e) Data Structure:

PURCHASE CONFIRMATION = PURCHASE NUMBER + PURCHASE DATE

+ {PRODUCT} + AMOUNT


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PURCHASE NUMVER = {NUMBERS}

PURCHASE DATE = MONTH + DAY + YEAR

MONTH = {JANUARY-DECEMBER}

DAY = {NUMBERS}

YEAR = {NUMBERS}






PRICE = {NUMBERS}

LETTERS = {A-Z}

NUMBERS = {0-9}



PURCHASE RETURN

a) Description: data that pertain to returns to suppliers due to defects and/or

expiration.

b) Alternative name: returns to suppliers

c) Origin: Update Inventory (returns)

d) Destination: Suppliers

e) Data Structure:

RETURNED INVENTORY FROM CUSTOMER AND BRANCH= [SUPPLIER

NAME/SUPPLIER ACCOUNT] + {PRODUCT RETURNED} + DATE

SUPPLIERS NAME= {LETTERS}

SUPPLIERS ACCOUNT= {NUMBERS|LETTERS}

PRODUCT RETURNED=PRODUCT

PRODUCT= PRODUCT QUANTITY + DESCRIPTION + QUANTITY + PRICE

f) Volume and Frequency: once or twice in every 2 weeks


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RECEIVABLES

a) Description- Claims held against customers and others for money, goods, or

services.

b) Alternative name- Bill Outstanding

c) Origin- Manage Sales Payment

d) Destination- Accounts Receivables

e) Data structure :RECEIVABLE=DATE+REFERENCE NUMBER+[COMPANY

NAME|CUSTOMER NAME]+COMPANY ADDRESS

+AMOUNT+SIGNATURE OF PAYOR

DATE=MONTH+DAY+YEAR


DAY={NUMBER}

YEAR={NUMBER}

REFERENCE NUMBER={NUMBER}




ZIPCODE




SURNAME={LETTERS}

AMOUNT=ACCOUNT CODE+TOTAL AMOUNT TO BE

PAID+(PENDING/DUE AMOUNT)+DUE DATE

ACCOUNT CODE={NUMBERS+LETTERS}

REFERENCE NUMBER= PURCHASE CODE+EXPIRATION DATE

LETTERS={A-Z}

NUMBERS={0-9}

RECEIVABLES={RECEIVABLE}

f) Volume and Frequency : Approximately once a week


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RECORD SALE OF INVENTORY

a) Process Name: Record Sale of Inventoryb) Description: Recording Sale of Inventory is the recognition of orders as outright

sale


Input Data Flow(s): Inventory Reserved for Sale Output Data Flow(s): sales Confirmation Record transaction as VALID SALE Deduct Sales from currently available inventories

RETURNED INVENTORY FROM CUSTOMERS AND BRANCH

a) Description: Data confirming the return of inventories coming from customers

and branch

b) Alternative name: Branch and Customer returns

c) Origin: Update Inventory (returns)


e) Data Structure:

RETURNED INVENTORY FROM CUSTOMERS AND BRANCH= {PRODUCT

RETURNED} + [CUSTOMER NAME/ CUSTOMER

ACCOUNT/BRANCH NAME] + DATE

PRODUCT RETURNED= {PRODUCTS}

PRODUCT=PRODUCT CODE + DESRIPTION +QUANTITY + PRICE

f) Volume and Frequency: five to six times in every three weeks

RETURNED INVENTORY TO SUPPLIERS

a) Description: data confirming the return of inventories to suppliers and will in

turn lessen the inventory on hand

b) Alternative name: Purchase returns

c) Origin: Update Inventory


e) Data Structure:


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RETURNED INVENTORY TO SUPPLIERS= [SUPPLIER NAME/ SUPPLIER

ACCOUNT] + {PRODUCT RETURNED} + DATE

PRODUCT RETURNED={PRODUCTS}

PRODUCTS= PRODUCT NAME + PRODUCT CODE + DESCRIPTION +

QUANTITY RETURNED + PRICE

f) Volume and Frequency: twice a month depending on the amount of expired

stocks

SALES CONFIRMATION

a) Description- Approval of sale for accounting purposes

b) Alternative name-Authentication

c) Origin- Order Inventory

d) Destination-Manage Sales

e) Data structure :

SALES CONFIRMATION=ORDER NUMBER+SALES DATE+ACCOUNT

NAME +AMOUNT+QUANTITY+(PAYMENT METHOD)

ORDER NUMBER={NUMBER}

SALES DATE=MONTH+DAY+YEAR


DAY={NUMBER}

YEAR={NUMBER}

ACCOUNT NAME=GIVEN NAME+MIDDLE NAME+SURNAME



SURNAME={LETTERS}


ACCOUNT CODE={NUMBER}

QUANTITY=PURCHASE CODE+PURCHASE DESCRIPTION+(AVAILABILITY

OF PRODUCT)

PURCHASE CODE={NUMBER+LETTERS}

PAYMENT METHOD=[CHECK I ACCONTS RECEIVABLE I CASH|CREDIT

CARD]

LETTERS={A-Z}


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NUMBERS={0-9}

f) Volume and Frequency : Approximately 75 times an hour (over the counter

sales) and TEI a week (wholesale)

SALES RETURNS

a) Description: these are date concerning returns coming from past sales

transactions. These datas purpose is to update the inventory system on the

additional inventory obtained from the returns of customers or own branches.

b) Alternative name: trade returns

c) Origin: Customers

d) Destination: Update Inventory

e) Data Structure:

SALES RETURNS= [CUSTOMER NAME| CUSTOMER ACCOUNT] +

{PRODUCTS RETURNED} + DATE

DATE=MONTH+DAY+YEAR


DAY={NUMBER}

YEAR={NUMBER}

CUSTOMER NAME={LETTERS}

CUSTOMER ACCOUNT={NUMBERS+LETTERS}

PRODUCTS RETURNED={PRODUCT}

PRODUCT= PRODUCT CODE + DESCRIPTION + QUANTITY RETURNED +

PRICE

PRODUCT CODE= {NUMBERS+LETTER S}

DESCRIPTION={NUMBERS+LETTERS}

QUANTITIES RETURNED= {NUMBER }

LETTERS={A-Z}

NUMBERS={0-9}

f) Volume and Frequency: thrice in every 2 weeks

STOCK REQUEST

a) Description: Stock request is a notification for inventory replenishment sent by

the branch to the home office


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b) Alternative name: Inventory demand

c) Origin: Branch


e) Data Structure:

STOCK REQUEST = STOCK NUMBER + STOCK REQUEST DATE +

BRANCH NAME + SHIP ADDRESS + BILL ADDRESS + {PRODUCT}

+ AMOUNT

STOCK NUMBER = {NUMBERS}

STOCK REQUEST DATE = MONTH + DAY + YEAR

MONTH = {JANUARY-DECEMBER}

DAY = {NUMBERS}

YEAR = {NUMBERS}

BRANCH NAME = COMPANY NAME

SHIP ADDRESS = ADDRESS

ADDRESS = ADDRESS = STREET + CITY + [ STATE/PROVINCE ] +

(COUNTRY) + ZIPCODE

BILL ADDRESS = ADDRESS

ADDRESS = ADDRESS = STREET + CITY + [ STATE/PROVINCE ] +

(COUNTRY) + ZIPCODE




PRODUCT NAME = [LETTERS}



PRICE = {NUMBERS}

LETTERS = {A-Z}

NUMBERS ={0-9}

f) Volume and Frequency: Approximately once a week

SUPPLIERS

a) Description: Suppliers are external entities that provides goods as merchandiseb) Alternate name(s): Dealer, Merchantc) Input Data Flow(s): Purchase data; Purchase returns


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d) Output Data Flow(s): Supply DataSUPPLY DATA

a) Description: Supply data are additions to currently held inventories available for

saleb) Alternative name: Purchases

c) Origin: Suppliers

d) Destination: Update Inventory (Stock Replenishment)

e) Data Structure

SUPPLY DATA = [SUPPLIER NAME/ SUPPLIER ACCOUNT] +{ PRODUCT }

+ AMOUNT

SUPPLIER NAME = FAMILY NAME + GIVEN NAME + MIDDLE INITIAL

SUPPLIER ACCOUNT = {NUMBERS}





PRODUCT DESCRIPTION ={LETTERS}


AMOUNT = {NUMBERS}

NUMBERS = {0-9}

f) Volume and Frequency: Approximately once a week

UPDATE INVENTORY

a) Process Name: Update Inventoryb) Description: Update Inventory is concerned with either addition or reduction of

inventory due to purchases, returns and disposal

c) Process No.: 2.0d)

Process Description: Input Data Flow(s): Branch Inventory Returns

Sales Returns

Inventory Status

Supply Data

Output Data Flow(s): Purchase Returns


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Returned Inventory from Customers and Branch

Returned Inventory to Supplier

Purchase Data

Additional Inventory Data

Inventory Reduction

UPDATE SALES

a) Process Name: Update Salesb) Description: Update Sales is a process of restating cash sales into its current

status, acknowledging changes happened, such as addition to sales


Input Data Flow(s): Payment Output Data Flow(s): Cash Sales

Receivable Reduction

IF Payment is for offsetting Accounts receivableTHEN Deduct payment from outstanding Accounts Receivables

Recognize payment as saleVALIDATED ORDER DATA

a) Description: Data concerning official orders agreed upon by the entity and the

customer

b) Alternative name: Verified Request

c) Origin: Costumer

d) Destination: Confirm Sale of Inventory

e) Data Structure:

SALES CONFIRMATION=ORDER NUMBER+SALES DATE+ACCOUNT

NAME +AMOUNT+QUANTITY+(PAYMENT METHOD)

ORDER NUMBER={NUMBER}

SALES DATE=MONTH+DAY+YEAR


DAY={NUMBER}

YEAR={NUMBER}


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ACCOUNT NAME=GIVEN NAME+MIDDLE NAME+SURNAME



SURNAME={LETTERS}


ACCOUNT CODE={NUMBER}

QUANTITY=PURCHASE CODE+PURCHASE DESCRIPTION+(AVAILABILITY

OF PRODUCT)

PURCHASE CODE={NUMBER+LETTERS}

PAYMENT METHOD=[CHECK I ACCONTS RECEIVABLE I CASH|CREDIT

CARD]

LETTERS={A-Z}

NUMBERS={0-9}

f ) Volume and Frequency: Approximately 75 times an hour (over the counter



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Use Case

Name: Confirm Sale

Use Case ID: UC1

Description: The customer will sent an order request of products. The manager will

confirm the sale of the product. This will be recorded by the accountant.

Precondition: The customer can be anyone. He could be an individual or an entity like

a hospital, retailer, or other retailers.

Trigger: An order is processed into sales transaction.

Basic Flow: The customer provides the order and the payment.

Result: The confirmation of sale or an invoice will be sent to the customer. If the sale

is paid directly, the accountant will issue an official receipt.

Name: Confirm Purchase

Use Case ID: UC2

Description: The manager will place orders to the suppliers. The suppliers will in turn

confirm the purchase. The purchase will be accounted for by the accountant.

Precondition: The suppliers are those whom the pharmacy are in contracted with.

Trigger: An order is submitted to the supplier.

Basic Flow: The manager will place the order to the suppliers and the accountant will

provide the payment.

Result: The supplier will send the merchandise together with an invoice.

Name: Place Order (to suppliers)

Use Case ID:UC3

Description: The manager will place order to the suppliers. The supplier will confirm

the order.

Precondition: The list of supplies needed is already pre-determined before issuing an

order to the supplier.

Trigger: The order is sent to the supplier.

Basic Flow: The order is sent and the accountant of the pharmacy will receive a

confirmation of purchase.

Result: The orders will be confirmed by the supplier and the merchandise will be sent.


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Name: Send Payment

Use-Case ID: UC4

Source: Requirement

Description: After receiving the invoice from the Supplier, the Accountant is going to

send money to the supplier as the payment of the products we have purchased.

Precondition: The party sending the payment must be a member of the entity.

Trigger: A new products were received.

Basic flow: The entity is to order products to the supplier and once that the orders are

confirmed and invoice is send, the accountant is to send payment to the supplier

Result: An increase in inventory of the products and in cash disbursement account

Name: Receive Invoice

Use Case I.D.:UC5

Description : The entity will receive a printed record of the products they have

bought and the amount charge as a request for payment

Precondition: The entity shall pay for the products theyve bought/ ordered.

Trigger: The entity ordered products to the supplier and the supplier will send back a

receipt.Basic Flow: The entity will order products to suppliers and the suppliers will send an

invoice for the entity to know how much they were going to pay.

Result: The entity will know how much theyve ordered and pay it.

Name: Account purchase of inventory

Use case I.D. : UC6

Description : The entity will receive a printed record of the products they have

bought and the amount charge as a request for paymentPrecondition: The entity shall pay for the products theyve bought/ ordered.

Trigger: The entity ordered products to the supplier and the supplier will send back a

receipt.

Basic flow: The entity will order products to suppliers and the suppliers will send an

invoice for the entity to know how much they were going to pay.


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Result: The entity will know how much theyve ordered and pay it.

Name: Place Stock Request

Use Case ID:UC7

Description: The branch will place a stock order. The manager will now process the

order. The manager will confirm the sale and will be recorded by the accountant.

Precondition: The branch has provided list of product to be sent.

Trigger: A request from the branch will be sent to the manager.

Basic Flow: The branch will send report and stock request to the manager. The

manager will process the report and the request.

Result: The stock order will be recognized and will be performed.

Name: Process Order

Use Case ID:UC8

Description: An order is received from a customer. This order will be processed by the

manager.

Precondition: Orders are inclusive from all customers.

Trigger: An order is received from a customer.

Basic Flow: When an order is received, the manager will place the order into the

system.

Result: The orders will be confirmed and consequently paid to the suppliers.

Name: Place Order ( fr customer)

Use Case ID:UC9

Description: The customer will send an order request to the manager. The manager

will process the order and then the manager will now confirm the sale and will be

recorded by the accountant.

Precondition: The customer can be anyone. He could be an individual or an entity like

a hospital, retailer, or other retailers.

Trigger: An order request is received from suppliers.

Basic Flow: The manager will confirm the request of the customer.

Result: The order will be placed into the system and later the ordered merchandise will

be sent to the customers.


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Name: Account Sale of Inventory

Use Case ID:UC10

Description: The customer will pay for the merchandise bought. The accountant will

take into account the payment made by the customer.

Precondition: The customer can pay on cash basis, on credit, or through the use of

credit card.

Trigger: The customer places the payment into the hands of the accountant.

Basic Flow: The accountant will verify the payment of the customer.

Result: The accountant will send invoice to the customer.

Name : Send Invoice

Use Case I.D.: UC11

Description : The system identify the customer goods that was purchase to determine

how much was his/her outstanding balance.

Precondition : The customer shall pay what he/she ordered.

Trigger: The system identify the order and it send an invoice to customer for furthur

payment.

Basic Flow : Customer allot the corresponding information needed in invoice

together with the payment of the ordered product. After that the customer may

pay in his/her choice if cash basis, receivable or in credit card term. It is issued

any time when sales takes place.

Result : Customer makes payment and the sale is recognized.

Name: Receive payment through credit card

Use Case I.D.:UC12

Description: It describes the payment of the client through credit card. Then the

system will identify if the credit card is authorize or not by the bank. If it is

authorize by the bank, the system will give a confirmation but if it is not

authorize the system will reject it.

Precondition : The client shall be in good faith or active payor in his/her presciptive

bank as a cardholder.


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Trigger: Client shall identify the corresponding information needed in order for the

system to monitor its inventory. After it the system sends authorization message

to the bank. The system will now incurred a sale.

Basic Flow : Client assign the corresponding information required by the system

such as credit card number and the card expiration date. The system will

recognize the payment.

Result: A slip will be given to the customer as a proof of billing.

Name: Receive cash payment

Use Case I.D.: UC13

Description: It describes the payment of the customer through cash basis over the

counter. The system will give a confirmation if the sale is verified or not.

Precondition: The customer paid the product they bought.

Trigger: The customer shall give a related confirmation before the salle will occur.

Basic Flow: The customer fill up an order form or give a prescription letter from the

physician before the system will distinguish the product name and price. After

accepting the order thats the only time the system will give a confirmation of a

sale.

Result: Sale is realized by the entity.

Name: Receive payment on account

Use Case I.D.: UC14

Description: It describes the payment of the purchaser through account basis over

the counter or from telephone call (branch,hospital) orders.

Precondition: The purchaser shall be an entrust client of the entity.

Trigger: The purchaser will pay accounts.

Basic Flow: The purchaser make certain pledge to the entity before the system will

accept the sale. The order will be remove from the system when certain

confirmation materialize.

Result: The sale will be knowledgeable when the purchaser and the entity agreed when

will be the payment.


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USE CASE DIAGRAM

ACCOUNTANT

CUSTOMER

SUPPLIE

MANAG

BRANC

BANK

SEND PAYMENT ACCOUNT PURCHASEOF INVENTORY

RECEIVEINVOICE

CONFIRM PURCHASE

PLACE ORDER

CONFIRM SALE

SEND INVOICE

ACCOUNT SALE OFINVENTORY

ORDER REQUEST

PROCESS ORDER

PLACE STOCKORDER

RECEIVE PAYMENT

THROUGH CASHRECEIVE PAYMENTIN CREDIT CARD

BRANCHREPORT

INVENTORY SYSTEM

RECEIVE PAYMENTIN A/R


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PROTOTYPE


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CHAPTER IV

CONCLUSION

The analysis shows that the benefits exceed the cost and this gives rise to the

conclusion that the system should be employed to the pharmacy. The main benefit of

the system to the business is reflected on its operations. The Inventory System will

bring an easier way of recording, measuring and monitoring the changes in the

outstanding inventories. Instead of physically counting and listing all the products,

youll know their balances with just some clicks away. Also, since the system saves

every single transaction created concerning the inventories, it would be possible to

know past transactions because of the ability of the system to retrieve past

information. This will in turn bring good response from every side of the business- the

customers and the suppliers. It is also important to take in consideration its

sustainability in the long run. On the succeeding years of the operation of the

business, the inflow of profit to the company will be greater considering that the costs

incurred in applying the system will be offset on the first year of operation.

RECOMMENDATION

As mentioned, the only constant in this world is change, and information

technology development is the one which are most affected by these changes. In the

next five years, the emerging information system and technology that may affect the

application of information system in the business may lost its tract. The increasing

competition among businesses like where MedCheck is designated is deemed to

develop new technology and tools to help them to stay competitive or even survive in

the market and to serve the changing demand of their customers. Considering a

drastic revolution that the society must expect, future changes are held to beundefined, thus, the business must be prepared to adapt and to resolve problems

that may arise in the forthcoming.

At present, it is highly recommended that the business must actively identify

the different alternatives that can be applied to their operations so as to become


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successful, taking into consideration adapting Information systems. As customers are

vital to the business, certain strategies must be applied in order to improve existing

customer relations. Information technology as a strategy for business improvement

involves a number of processes, of which technology plays a significant role. In order

to apply this successfully and effectively, analytical techniques must be utilized in

order to assess the various features related to information technology that can be used

in the petroleum industries. Through these techniques, business operators will be

able to identify problem areas in advance and develop options that will resolve them.

Documents

Thesis on System Analysis and Design