PSMS - Purchase and Store Management System

Proposal of Purchase & Store Management System(PSMS)(A conceptual Idea )

February 28

2011

ForBCMCL (Barapukuria Coal Mining & Company Limited.) (A Company of Petrobangla)

Submitted By:

48, New Market, 1st FloorRajshahi-6100Contact # Mobile: 01710 94 64 28 | 0175 000 28 97

Email: [email protected]

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Proposal of Purchase & Store Management System (PSMS) for BCMCL

1. Software Designing With Client Server interface

MT e c h n o l o g y, 48 New Market, 1st Floor, Rajshahi-6100 2 | P a g e . Contact : 01710 94 64 28 | 0175 000 2897 | Email : [email protected]

INDENTING

DEPARTMEN

T

VENDORS

P U R C H A S I N G

P U R C H A S I N G

Store Departme

nt

Store Departme

nt

Packing Slip, Invoice, etc.

Send Copies of PO, Clearance Certificate,

Invoice, Receiver Report, QC Report To Account Payable Department

Requisitio

n

PO

PO, Packing Slip, Invoice,

Receiver Report, QC Report

PO

Goods

PO

QC

Requesting For Quality

Check Receiving Bay

Goods

QC Report

Requesting a Report Of the Required Goods in a specific format

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Indenting Department

Requisition

S T O R E

Requesting a

Report of the

Required Goods in

a specific format

P U R C H A S E

Dept.

P

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Store Information

Supplier Information (From Purchase Supplier Table)

Unit Information

Material Information

Local Purchase Order (LPO)

Foreign Purchase Order (FPO)

Invoice Information

Purchase Order Information (Local)

QC Sheet Information (Local)

Rejected Material Record

Material Receiving Report (MRR)- Local

Purchase Order Information (Foreign)

QC Sheet Information (Foreign)

Material Receiving Report (MRR)- Foreign

MRR (Cash Purchase)

Store Requisition – SR

Material Location Chart

Material Stock Level

Procurement & Consumption Rate

KARDEX

Scrap Receiving Memo – SRM

Scrap Requisition From

Scrap KARDEX

Scrap Report

Annual Report

Daily Report or Day to Day Report


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Supplier Details Information

(ID, Name, City, State, Country, Contact Number, Fax, email, web address

etc.)

Product Catalog

(ID, Name, Type, Description, Drawing No. etc.)

MRP (Material Requirements Planning) Analysis Report

Purchase Order Information

(Supplier ID, Name, Lead Time, Qnt., Price, Place of Delivery etc. )

Requisition Information and Priority

(ID, Dept., Line#, Item, Qnt., Item Dsc., Delivery Date, Delivery Priority ,

Etc.)

Shipment Information

(ID, OP, Pick up Location, Load and departure time, weight, # of Packages,

Transport Mode, Freight Charges etc. )

Supplier Performance Report (Auto Generated )

– Such Lead Time Promised, exponential Avg. day late, % of rejected for

damages or poor quality etc.

Others Required Report or System. (My Vary to organization to

organization )


Client 1 8Client 1 8Client 1 8

Client 1 8Client 1 8

Client 1 8Client 1 8Client 1 8

SERVER

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System Analysis of Purchase and Store Management System

At present, BCMCL inventory operations are done manually by the user. For

keeping a track of the equipments ordered, received & delivered to specific

indent. Records of the customers, stock information, roll out information

and customer invoicing information etc. is also maintained in this system.

This system in general reveals all information on type of equipments

ordered for specific indent, record of equipments which are received based

on what was ordered, order processing details for e.g. - details of indenting,

purchase order & the equipment dispatch details, scarp information,

KARDEX information, Product consumption report in period basis, Product

specification, product drawing, shipment details, lead time, MRP(Material

Receiving Report), estimation, supplier performance report, Market

analysis report and invoicing details based on each indent.

All these information are vital for the company. The reports are also

included to this system on each transaction made. The reports are to be

also made manually by the user which is a very tedious task. In addition,

they had to enter all the details of raw materials into the tables to get to a

conclusion whenever needed.

Moreover, in order to get a clear conclusion the user had to make reports on

each and every category of the equipment, which means creating different

individual reports for that particular category. In the existing system, the

user also had to make entries in as many tables as possible. If any

modification is to be made, it becomes tedious and cumbersome process,

which takes a lot of time and energy.


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Drawbacks of Existing System

The system is manual and very tedious to maintain and make reports since

all the data are stored in document form/files/registers. And being an

organization where all the details have to be kept confidential and so

maintaining them will be very risky. And to get the details of an indents or a

particular indent like PO, dispatch, supplier, or equipment details, we have

to search through the entire files and registers to get that particular detail.

The following are the lists of drawbacks:

• All are written document.

• The data stored in the document are not reliable.

• Reports are not sufficient and are very complex.

• Redundancy (Unstructured, Unnecessary, Mixed etc.) of data.

• Storing and retrieval of information is time consuming.

• Verification of data is tedious.

• Large volume of data cannot be maintained efficiently.

• Maintaining all the record in an orderly manner is a difficult task.

• Since all the details are stored in files & registers, which are not

computerized, it occupies a voluminous area.

• It is difficult to manually search for a particular item to obtain

information about them.

• Slow responding of the information registers.

• Very difficult to verify the stock label.

• And many more important quarries would very difficult to be made

and sometimes it is impossible.


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Proposed System

In this phase, the concepts associated with the system will be analyzed and

how they are implemented in the project is dealt with. In this, the existing

system should studied thoroughly, the problem and the requirements

should identified, alternative solutions will be analyzed and the best solution

among them be selected.

Advantages of the Proposed System

The proposed system has been designed to eliminate the major

disadvantages of encountered in the existing system. There is no room for

errors in the proposed system. The error checking should be dealt

efficiently. The errors that could happen during date entry are also informed

to the user. At important point of the data entry, it has been ensured that

only valid data can be entered. Get easily many more sophisticated reports

with the complex quarries.

The proposed system will be designed in such a way to attract user by

being user friendly. With the key options in the data entry form and the

report generation, it helps the user & does not make him feel tedious

anymore.

This system give you an enormous flexibility to meet you demand with lots

of reports, and fully automations operation, it handled details of indenting

information, purchase order & the equipment dispatch details, supplier

details, scarp information, KARDEX information, Product consumption report

in period basis, Product specification, product drawing, shipment details,

lead time details, MRP(Material Receiving Report), estimation, supplier

performance report, Market analysis report, invoicing details and many

more which gives an organization completely complex free operation and of

course saving lots of time consuming.


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Goals of proposed system

1. Planned approach towards working:The working in the organization will be well planned and organized. The data will be stored properly in data stores, which will help in retrieval of information as well as its storage.

2. Accuracy: The level of accuracy in the proposed system will be higher. All operation would be done correctly and it ensures that whatever information is coming from the center is accurate.

3. Reliability:The reliability of the proposed system will be high due to the above stated reasons. The reason for the increased reliability of the system is that now there would be proper storage of information.

4. No Redundancy: In the proposed system utmost care would be that no information is repeated anywhere, in storage or otherwise. This would assure economic use of storage space and consistency in the data stored.

5. Immediate retrieval of information: The main objective of proposed system is to provide for a quick and efficient retrieval of information. Any type of information would be available whenever the user requires.

6. Immediate storage of information: In manual system there are many problems to store the largest amount of information.

7. Easy to Operate: The system should be easy to operate and should be such that it can be developed within a short period of time and fit in the limited budget of the user.


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Developing Solution Strategies

The proposed system is completely menu driven. Input screens are properly

arranged & designed in such a way that the user does not feel complicated

at any stage of using this system. Therefore it is very easy for the end users

to work with such a system. Data fields are in the normalized form thereby

avoiding data redundancy.

Implementation Procedure

MTechnology is designing a Purchase & Store Management System

(PSMS) for BCMCL. It requires an enormous effort in preliminary

requirement specification and design before the actual software

development starts. We divide the implementation into the following

definite phase.

• Requirement Specification

• System Architectural Design

• Object Design

• Module Development

• Integration

• System Testing and Trial Run

• User and Administrative Training

• System Signoff

• Maintenance (OP)

Requirement Specification

In this phase a team from both the client and vendor will carry out a detail

study on the exact procedure and requirement of the entire system. The

goals of this phase will be to extract

• Processes related to the system

• Entities related to the system

• Interaction among processes and entities

• Desired interface between processes and entities

• Desired management output requirement


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System Architectural Design

This phase is the direct decomposition of the Requirement Specification

phase.

• Module internal process design, data structure and data flow

• User interface format and conventions

• Report design and structure

Object Design

This phase will act upon the module level design (package design) generate

from the earlier phase.

• Business Logic behind each module

• Command flow among objects

• Database schema, replication and sizing specification

• Database objects like table, views etc. specification

Module Development In this phase each module will be developed as per system design report.

Module validation, verification and unit testing will be integrated into the

development process.

Integration

At this phase modules developed so far will be integrated according to the

subsystem specification described in the system design report.

System Testing and Trial Run

After the integration is complete, the system will go through site testing

through trial run. Both the vendor and client will actively take part in this

trial run and accurate testing. The following objects will be achieved

through this phase

• Bug checking and bug fixing

• Finalization of technical documentation

• Finalization of user materials (manuals, help files etc.)

• Future enhancement exploration


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• Staff and management acceptance and adaptation with

new system

User and Administrative Training

In this phase training will be provided to three levels.

• Management training to Purchase & Store personnel

System Signoff

This phase is the final of the development phase where the system is fully

hand over to the client.

Maintenance & Enhancement

This is an optional phase. If BCMCL is willing (which is highly

recommended) they can enter a per call maintenance contract with the

MTechnology. The maintenance contract will ensure further modification

and enhancement of the system, which the MTechnology does in process

of his product enhancement or the client feels necessary.


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Implementation Timeline

Total project timeline from Requirement specification to System Signoff is

168 days. Here is a summary.

Phase

Serial

Phase Name Weeks Required

1 Requirement Specification 2

2 System Design 4

3 Object Design 4

4 Module Development 6

5 Integration 4

6 System Testing and Trial

Run

3

7 User Administrative

Training

1

8 System Signoff

Total Duration In Weeks 24


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2. Analyzing & Preparing Various Relevant Past (2005-2009) Information of Purchase & Store Department

For generating lots of reports and fully automations operations, from the

very beginning to use this system more than 5000 (Five Thousand)

product information and relevant information (Previous) should be

collected. Such as –

Indenting and requisition information

Purchase order & the equipment dispatch details

Quotation information

Supplier details

Scarp information

KARDEX information

Product consumption report in period basis

Product specification

Product drawing

Shipment information

Supplier lead time details

MRP (Material Receiving Report)

Estimates

Supplier performance report

Market analysis report

Invoicing details

Tender Information and many more


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3. Client Server Installation

The client-server model has become one of the central ideas of network

computing. Most business applications being written today use the client-

server model so as PSMS. Server was another computer that can participate

in a client/server network, as opposed to a peer-to-peer network. A server is

used to hold resources and items that other computers would need:

In most cases, a client-server architecture enables the roles and

responsibilities of a computing system to be distributed among several

independent computers that are known to each other only through a

network. This creates an additional advantage to this architecture:

greater ease of maintenance. For example, it is possible to replace,

repair, upgrade, or even relocate a server while its clients remain both

unaware and unaffected by that change. This independence from change

is also referred to as encapsulation.

All the data is stored on the servers, which generally have far greater

security controls than most clients. Servers can better control access and

resources, to guarantee that only those clients with the appropriate

permissions may access and change data.

Since data storage is centralized, updates to that data are far easier to

administer than what would be possible under a P2P paradigm. Under

P2P architecture, data updates may need to be distributed and applied to

each "peer" in the network, which is both time-consuming and error-

prone, as there can be thousands or even millions of peers.


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Many mature client-server technologies are already available which were

designed to ensure security, 'friendliness' of the user interface, and ease

of use.

It functions with multiple different clients of different capabilities.

4. Conclusion

This digital system helps to perform all the transactions of an Inventory

system for the organization in a smooth and effective way. It takes care of

all the transactions of an Inventory system for an organization and capable

to provide easy and effective reports related to the organizational activities

through Inventory Management System. It generates many essential

reports which may vary to organization to organization.

Real Time Transactions based system assures that the integrity of the data,

especially in a multi-user situation.

As a result using this system Organization’s Operations will become hassle

free and lots of Reports will enhance the overall performance.


PSMS - Purchase and Store Management System

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