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DESIGN AND IMPLEMENTATION OF A COMPUTERIZED PURCHASING
INFORMATION SYSTEM
ABSTRACT
In almost all business area purchasing information system has been
indispensable.
The operation this system has over a
decade been practiced manually in most business organization. However this
project will show how computerized purchasing information system will aid
eastern shop limited Enugu.
The manual operation of the purchasing system has been helpful to some extent,
but they g along with inefficiencies and inaccuracy. These has therefore given
rise to errors, mistakes and wastage of resources and precious time. This is
because of limited ability of human being to handle batch jobs over along
period of time.
Consequently, the thesis was prepared in view of showing how computerized
purchasing information system can enhance the processing of records, storage of
records and files, retrial of files and the updating of purchasing files. It
also establishes the advantage of the computerized purchasing information
system over the manual system in Eastern shop limited Enugu.
The new system, computerized purchasing information system is thus designed to
eradicate the problem of time wastage , inaccuracy and inefficiencies that are
associated with manual processing of records and updating of purchasing files
with little human intervention.
ORGANIZATION OF WORK
This study has been organized in seven
different chapters. Chapter one trashed out the statement of the problem,
background of the study, purpose of the study, its importance, scope,
limitation, assumptions and definition of
terms.
Chapter two review
of related literature which chapter three dealt with the description and
analysis of the existing system. The first finding method used, organizational
structure, objective of existing system, input, output analysis, information
flow diagram, problems of the existing system and justification for the new
system.
Chapter four presented the design of the new system. Its out put specification
and design, file design procedure chart, system flowchart and system
requirements.
Chapter five cooked into the
implementation, the program design program flowchart, pseudopodia, sources
program and test run.
Then chapter six was the documentation.
Chapter seven borders
on the conclusions and recommendation of the work. After which the reference
comes last.
TABLE OF CONTENT
Title page
Abstract
Certification
Organization of work
Table of
contents
CHAPTER ONE
1.0
Introduction
1.1
Background of the study
1.2
Statement of the problem
1.3
Purpose of the study
1.4
Importance of the study
1.5
Limitation of the study
1.6
Scope of the study
1.7
Assumption
1.8
Definition of term
CHAPTER TWO
2.0
Literature Review
CHAPTER THREE
3.0
Description and analysis of exiting system
3.1
Method of data collection
3.2
Organizational structure
3.3
Input process, output analysis
3.4
Objectives of the existing system
3.5
Information flow diagram
3.6
Problems of the existing system
3.7
Justification for the new system
CHAPTER FOUR
4.0 Design of
the system
4.1
Input specification and design
4.2
Output specification and design
4.3
File design
4.4
Procedure chart
4.5
System flow chart
4.6
System requirement
CHAPTER FIVE
5.0
Implementation
5.1
Program design
5.2
Test run
CHAPTER SIX
6.0
Documentation
CHAPTER SEVEN
7.0
Recommendation and conclusion
7.1
Recommendation
7.2
Conclusion
References
CHAPTER
ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
The art trading in materials i.e the
process of buying and selling is nearly as old as man himself. Before the
advent of money as medium of exchange man bartered item surplus of his
requirement for things, which he needed? From the time discovered that he could
put his talents to produce or manufacture things, he began to specialize on
whatever was his vocation, man found it more economical to purchase materials
of quality suitable to his needs at prices which he considered favorable.
It was observed that
50 to 60 percent of eastern shop expenditures is on materials. The purchases
department therefore, becomes the biggest spending department of the eastern
shop. Materials and supplies form the life blood, as it were of an industrial
concern. These should be made available on proper place, time and at proper
price. If all these do not happen the right way it may lead to the inefficient
marketing techniques or out mode production skill can lead to a decrease of
profit as inefficient system of purchase management can lead to a decreases in
profit. Professional competence there fore, is important in managing the
purchasing function purchasing today is a professional skill. Purchasing
involves the activity directed towards securing the materials, supplies,
requirement and services required in the operation of an enterprise.
These activities have
to be performed with optimum efficiently, economy and effectiveness. These
three factors are the key factors in obtaining excellence in managerial
performance.
Since materials
constitute the largest chuck of the cost of the creation of value (for which
alone to customer is willing to pay a price), it is necessary for the purchase
to exercise at most prudence in ensuring for the purchaser to exercise at most
prudence in ensuring that the best ultimate values is obtained for every ripe
spent on material VFM (Value of money) has to be the slogan of the purchase
department.
Today
purchasing is not the dame as buying of yester years. Buying is money the act
of procuring at item of material at a price. On the other hand purchasing
function is the improvement of profit and actively searching out and implaning
new ideas for improvement of the company’s product achieve this objective by
cost of material. Finding out substitute materials that are more economical, by
eliminating element of cost in purchasing that do not contribute to value and
generally ensuring a higher degree of effectiveness in managerial performance
functions righ form participation, working capital management and profit
improvement.
In order for the
purchasing department to carryout operations accurately, timely, economically
and effectively, it needs to process purchasing transactions set up files
possibly documents as well as receipts of ordered items set up. Program to
monitor the quantities and prices of received items.
Hence the use of
computer is very important in purchasing department.
1.2
STATEMENT OF THE PROBLEM
Purchasing department of eastern shop
finds it difficult to handle the bulky job manually, especially files as a
result of inaccurate and untimely processing of purchasing transactions. The
inaccurate and untimely processing may be attributed to postal delays, bad
handwriting, loss of vital paper or document, transcription errors, general
validation features during processing and plain ignorance of what information
is about, all course ion to many of the problems.
1.3
PURPOSE OF THE STUDY
The study will show
how accuracy is attained in using computerizing purchasing system. It also
shows how time is saved when using designed programs.
The purpose of the
study is to prove how computer can be used to achieve easy calculation and
account processing storage and reference of purchasing policies for
decision-making. The computerized purchasing system is more efficient accurate and
take less time in processing than manual. The design can be adapted for order
big trading companies.
1.4
IMPORTANCE OF THE STUDY
The main goal of using computerized
purchasing system is to reduce unit labour requirements of each business
operation
To access and maintain the account,
determining quickly nd easily what total are in the goods purchased.
To examine the present mode of
purchasing information.
To find out the problem associated with
present mode.
To design an appropriate and suitable
system of controlling purchase for the company.
The new system is
thus designed to eradicate the problem of inefficiencies, inaccuracies and
wastage in the manual processing or records and updating of purchasing files
without human intervention.
1.5
SCOPE OF THE STUDY
This research project wa only restricted to the purchasing department of the
eastern shop, Enugu. The following activities has been identified with the
department:
·
Periodic physical checking of items purchasing with the view to ascertain the
level of goods in stock.
·
Keeping an accurate record of all entries, including all purchase made.
·
Placing an order for the purchase of the needed items.
·
Determination and review of stock level for different products.
1.6
LIMITATION OF THE STUDY
A lot of constraints were encountered during this research. They are time and
financial aspects; this could not allow me to carry out the work at the
expected level. My inability to get an already written project on this topic
was also a constraint towards the study. Also there were some problems of
unwillingness of the respondent to give accurate information.
1.7
ASSUMPTIONS
During the process of study I assumed
that the workers were computer literate. I also assumed tat they were using
purchasing information method was not computerized. There was also this
assumption in me, they had not stated implementing computerized purchasing information
system.
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