Point of Sale System of Farmacia Gentaro

Chapter 1 OPERATIONAL FEASIBILITY Background of Study Farmacia Gentaro is pharmacy of San Juan, Sto. Domingo, Albay nearby Pugad Lawin Park. Farmacia Gentaro has 3 employees. It was established in April, 2008, Farmacia Gentaro was serving dominguenios for seven years. The manager of this company is Mark Gentaro E. Machii. Farmacia Gentaro has a net income of Php 60,000.00 – 70,000.00 monthly or 720,000.00 annually depending on the demand of the products. Their sales increase from day-to-day operations. Point of sale (POS) is one of the essential components of a successful business. It is a modern replacement for the cash register in retail application. It can help to record securely all the sales and customer’s orders, track products which are poor on business sales and of course manage inventory. Using computerized point of sale will give benefits to the business owners, employees, and to the customers. Every day, technology upgrades. The proponents decided to propose and pursue a Point of Sale System for Farmacia Gentaro to alternate their manual system of serving customers. The main objective of this study is to create and develop a computerized point of sales system that is completely responsible for Farmacia Gentaro in support of the daily business transactions.

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Opportunities Based on the problems listed below, Farmacia Gentaro will be benefited of the system. It can be; Secured data, Better standard of living, Experience In handling business, Monitor sales transaction easily, Lessen the effort and time being consumed during transactions and Helpful in manipulating the inventory of sales and keeping up old records or document reserved for future use. Problem Statement Systems for recording financial transaction have always been important in determining performance and worth of the company. It’s been 7 years of serving people in town of Sto. Domingo, Farmacia Gentaro is using manual based system in processing sales transaction and they encountered some problems. Some of these are listed below: 1. Difficulty in conducting the inventory. 2. Miscalculation of sales record. 3. Slow transaction process. 4. Disorganized data keeping and might lead to file lost. Current Situation Farmacia Gentaro was 7 years in the business. Currently they are using manual based system in monitoring and processing sales transaction since it was established. Sales transaction is recorded manually on a paper. The

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employees recorded what customer’s purchased products in a piece of paper as a receipt and the manager or cashier collects at the end of the day for computation and will move to inventory to determine the remaining stocks available. When there is a delivery of the products, the manager as well as the employee list all the number of items and keep the list as a stock record, this done when the employee carry out monitoring of stocks by counting and writing down on a piece of paper the number of items or products available on the stock and the payment of those items. The products were purchased based on the demand. The stock products was inspect by having inventory when delivery is give the check list to the manager to check the items sold when it is correspond to the items available on the stock. The manager examines the products sold on a day and added it to the stock count of the next day, and the result should be equal to the previous stock count. Farmacia Gentaro is having difficulties in billing and monitoring and issuing of receipts and they are finding ways or solutions to improve their business and make the business transactions automated. They believe that this study could offer a great help in improving the business’ approach to changes which the economy demands. General Objectives The objective of this study is to provide a better security for Farmacia Gentaro Point of Sale system by developing a system with authorization and to

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enable admin or review any transaction and then print-out various types of reports, and also to get the fulfillment rates of their sale. Specific Objective 1. 2. 3. 4.

To gain more profit. To have an accurate sale and inventory reports. Create a system the will provide faster transaction and operation To strictly monitor the daily sales of the company.

System Scope and Boundaries This study focused on the Point of Sale of Farmacia Gentaro. It focused on the sales transaction. It deals with the customer transaction, data entry and also inventory. The system is connected to the inventory but will not focus on the whole inventory of the store, yet it will help the inventory to have accurate data to sold products using the sales report that is automatically recorded to the database. The assigned person to monitor and use to system will be the one to input data in the system.

Items will be scanned through a barcode, it will

automatically recorded in the inventory as item in and out. The system is also for inventory. The function of this system is to put in order and arrange sales transaction, also to update the inventory and monitor the products left for another coming transaction. The assigned person or the manager will check at the same time update the products at the end of the day. This system was not operating Payment through credit card. Only the sales and few parts of inventory are generated. Other transaction and operation of Farmacia Gentaro such as payroll system or employee information system is

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not included in the system. And the system cannot receive amounts on credit card basis. Responsibilities The proposed system can be used daily by the business. It can be for a lifetime transaction by the business. It can be lessen paper works and manipulate data secured in the system. It minimizes time in just one click. The users who have rights of using this system will need some practice on how to manipulate the system. Operational Chart:

Figure 1. Operational Chart

Manager. The manager has the responsibility to oversee all functions of the company handle payables and customer relations. Responsible of the money of

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company. He is in charge to the decision making of the company. He has the full control and access of the record in the system. Cashier. The cashier is the one who is operating the cash register. They are the one responsible in transacting with the costumer in paying bills and issuing receipt. Salesperson. The salesperson is the one who assist the customer, maintaining an orderly store and ensure good service specially in locating certain items. Constraints Farmacia Gentaro has possible constraints that may influence on the proposed system. Some of these are: 1. When the system is bar down, it will not work. 2. When there is an incorrect input by the user it may cause data malfunction. 3. There is no technician to maintain the system. Possible Alternatives The basic alternative is to prevent problems that the system might occur. It refers to solution in the constraints of the system. These are possible alternatives: 1. It must be secure when storing files. Also provide administrator to assigned username and password to secure information. 2. Management must select give responsibility to the persons that will manage the products

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3. Management should hire IT personnel who is reliable to maintain the system in case it caused break down and malfunctioning of hardware and software.

Chapter 2 TECHNICAL FEASIBILITY Point of sale system will provide clear, reliable and accurate data and information in every transaction. The purpose of this chapter is to evaluate the feasibility of and explore the technical parameters required for Farmacia Gentaro It also discusses the system hardware and software and its importance on the proposed system. System Description The proposed system in Farmacia Gentaro is Point of Sale with inventory which can help the company in billing, monitoring the stocks, and issuing of

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receipts, importing all the product and goods in a system by using databases. It will help the system management to avoid errors and optimize the validity of number of sales, supplies, purchase and their expenses monthly. It monitors the frequency of theft, or breakage of products received. The manager and the cashier will have the accessibility for the program. When a customer approaches the cahier to complete a transaction, the cashier will likely employ a computer or cash register to collect some basic information. POS systems either require cashier to manually enter information about the purchased items using a keyboard or use a bar code scanner to automatically register product information. The computer system then retrieves the item price and a basic description from a database, and some systems automatically deduct the item from the retailer's inventory. When the cashier indicates that she has registered all of the items in the transaction, the POS system calculates a subtotal, applies any applicable taxes and presents a total amount due. Adding items to the invoice updates the inventory. In payment process, if the customer pays cash, the merchant typically registers the payment amount with the computer, accepts the currency and returns the difference between the tendered amount and the amount due in the form of change. As printing the receipt, the information will be recorded to the database, including the receipt number. The user access of the manager allows monitoring and viewing the sales inventory and transaction made by cashier to the customer. Also, updating the

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items, adding new items to the database, and adding new number of stocks of a certain product. The company can avoid running out of stocks of a product by means of monitoring the remaining stocks. System Users. The focus is who is liable for the system. The one who manage the system is the one who will have rights. Manager. The manager has the authority to access the database system, which allows the manager to acquire the sales report from its pharmacy system. The manager has also the responsibility to oversee all functions of the system to handle payables and customer relations. Responsible of the money of company. Cashier. The cashier is the one who provides the billing receipt to the customers. The receipt will be printed based on the order made by the customers. System Data An entity-relationship diagram (ERD) is a type of data modeling that shows a graphical representation of objects or concepts within an information system or organization and their relationship to one another.

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Figure 2. Entity Relation Diagram The admin as owner will create and add salesperson; it includes the first name, middle name, last name, username and password. Admin will create products table list include its details, which can view by the salesperson if there is availability of the product. Then print it with information. Receipt information includes the receipt ID, date, total, payment amount and the change. A receipt detail includes the receipt no., product code, product name, product quantity and product price. And generate report with the sales, expenses and inventory. Contextual Diagram

Figure 3: Contextual Diagram of the proposed system

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On the contextual diagram it shows the process of the system. The manager have a full access of monitoring the cashier’s transaction. The cashier will input the unique product code and it will display the details of the said products. The data of the sold items will automatically store in the database accessed by the manager and proceed to update the sales. Data Flow Diagram This is the graphical presentation that will show the Data Flow Diagram of the Proposed System how process of transaction is made.

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Figure 4. Data Flow Diagram of the proposed system Figure 4 shows the Data Flow Diagram of the proposed system. It starts from customers purchasing products by asking and assisting the salesperson. Each product has its unique product code. The cashier will scan the barcode or input unique product code, and it has details shown in the screen, then input the

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quantity of the products that customers wants to buy, system will automatically compute the ordered items. Payment shall follow. Printed receipt will be given to the customer. The database will automatically save and update the data gathered as inventory. The cashier will update the sales to the database and transaction will be recorded automatically. Once the data are sent, the manager will receive report about the total sales. The manager will view the reports for the inventory of the products and also to update and checked their stocks.

Exploded Diagram

Figure 5. Exploded Diagram The whole records are managed by the manager. It is the authorized personnel to add, delete and update of the products information. The manager can add new products in the store with a unique product codes. An item can also be removed depending on the manager if it is no longer

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needed from the database. Updating an item is also necessary that allows the user to add new numbers of stock of the products. Technical Resources The Technical Resources for the proposed system are categorized into the hardware and the software. This also refers to the one who has confident in managing the system, like professional IT or engineer that will manage and check the system about the process so that they can easily identify and fix the problems encountered in their system. Hardware Hardware is a collection of all the parts that can be physically touched. It includes monitor, mouse, keyboard, motherboard, RAM, processor, hard disk drive, Automatic Voltage Regulator and other parts that are tangibles. Hardware refers to the tangible parts of the system. To avoid system failure once it is implemented, the system requires compatible specification for the hardware. Software Software is a collection of instructions that enables the user to interact with a computer or have it perform specific task for them. Without software computer will be useless.

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The software is the intangible part of the computer. The software requirements are the needed application for development of the system. System Requirements The System Requirement for the proposed system is the specifications requirements. The table below shows the minimum specification and the recommended in operation.

Description

Minimum

Recommended

Hardware Monitor

LCD monitor

LED monitor

Mouse

Standard wheel mouse

USB Optical mouse

Keyboard

Standard Keyboard

A4TechStandard Keyboard

Motherboard

Intel motherboard

Intel Desktop Board DH55PJ

UPS

500W APC

500W APC

Hard disk drive

80GB memory

500 GB SATA HDD

AVR

500VA

500W AVR

LS-2208A laser

Zebex Z-3110 CCD

Barcode scanner (USB port)

Barcode scanner

Epson TM-T88IV

TSC TTP-247

Barcode Scanner Thermal Printer

Thermal Printer Processor

Intel Dual Core

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Intel Core i3-3210 Processor 3M Cache, 3.20 GHz

Table 1. Hardware The monitor will display the output and processes made by the users. The mouse and keyboard are the primary input devices. The motherboard and memory will be used for the processes of the computer unit. The hard disk will serve as the memory storage. The processor is used for the speed of the system.

Table 2. Software Software Specifications Software

Minimum

Recommended

Operating System

Windows 7 ultimate

Windows7 Professional

Programming language

Visual Basic 2010

Visual Basic 2012

Database Software

SQL server 2008

SQL Server 2012

As to the proposed system, the proponents choose windows 7 Professional recommended operating System, Microsoft Visual Basic 2012, as the programing language and SQL server 2012 for database as the storage of data, will be used to create the program. System Interface The system is divided into two user accesses, one for the manager, and one for the cashier. There is a separated storage for employee accounts.

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Plate 1: Admin and Employee Login Interface User will assess whether the one who log in is the manager or a employee. Once the administrator log in clicks, it directs to admin log in shown in plate 2.

Plate 2: Manager Login Interface This plate is the log in form of the manager. Once the user log in successfully, the monitoring system of the manager will show.

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Plate 3: Monitoring Interface of Manager Monitoring Interface used by the manager. It allows the manager to add, remove, and update the product information. Manager has the full access of all the records for every transaction of the cashier.

Plate 4: Add Item Form

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Plate 4, allows manager to add new items to the database. The item code must be unique. The system will check the database whether the codes already exist or not before adding it to the database. The remaining stock depends on the total stocks of the item since it has just to be added as new item.

Plate 5: update Item Form Manager can be update by clicking the ‘Update Item’ button. This plate allows manager to edit information, and the item will automatically copy to Update Forms field. Updating items also includes adding new quantity of stocks of a certain product, also update the price. Once the update is done, time and date also include for monitoring purposes.

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Plate 6: Cashier Log in Form Plate 6 shows the login interface of the cahier. When the username and password is valid, it will direct to plate 7.

Plate 7: Cashier Main Form Interface

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Every purchased item will be recorded, consist of the receipt number where it belongs. When removing items from the invoice, it will also remove the information from the database. System also allows discount for bulk orders. ‘Print Receipt’ button will provide the printed receipt for the customer which is also being recorded. ‘OK!’ button will clear all the fields and make a new transaction.

Plate 8: Search Item Interface Search item will help the cashier to easily find products information. By choosing items from the form and clicking the ‘Select Button’, it will quickly add products to the main form.

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Plate 9: Receipt Interface Plate 9 shows the output of the purchase product, which is the printed receipt, which serves as the invoice of the customer. It display the cashier name, cashier id number, and the summary of the purchase product, includes item description, quantity, price, total amount to pay, amount of pay, and the difference between the tendered amount and the amount due in the form of change.

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Chapter 3 SCHEDULE FEASIBILITY The purpose of this chapter is to discuss the schedule of the proposed system.

Preliminary Investigation, Problem Analysis, Requirement Analysis,

System Design, Implementation, Operation and Support. Preliminary Investigation Farmacia Gentaro is using manual based transaction, their manual system will be replaced by the computerized point of sale system. Farmacia Gentaro will be benefited to make the business transaction accurate, easier and faster if the proposed system will be implemented. As the researchers conducted an interview to Farmacia Gentaro, the main reason is to be able to know the pharmacy’s current system and the problems they encounter. This investigation serves as basis in the construction of the proposed system. PROJECT SCHEDULE This shows the duration of time needed for the whole study of the system until the implementation is completed. The illustration below is the Gantt Chart:

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Table 3. Gantt Chart of Study Month

1st Month

Week(s)

1

2

3

2nd Month 4

1

2

3

3rd – Month 4

1

2

4th 3

4

5th Month 1

2

3

6th Month 4

1

2

3

Preliminary Investigation Problem Analysis System Design Implementation Review and Maintenance

Table 3. Shows the development of life cycle of the proposed system. It consists of 6 non-consecutive months. Problem Analysis Farmacia Gentaro, using manual system according to our interview to the owner of the pharmacy, they cannot specify the exact amount of sales and item sold, they have complication on sales and inventory due to human errors and also laboriousness and time consuming when it comes to generating sales and inventory reports, for obvious reasons that it is done manually. Manual sales and inventory system turned out to be slow and inaccurate resulting to problems like running out stocks and slow computations of product prices being bought by the customers. Papers overload used are difficult to maintain, it cause loss or damage. The owner of Farmacia Gentaro wants a computerized system to avoid time consuming for the sales and inventory, so the

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developer makes computerized sales and inventory system to solve the problem encounter by Farmacia Gentaro. System Design Farmacia Gentaro will be benefited of the proposed system when it comes to recording their sales transaction and even inventory management. In system design, the proposed system focuses on what software they will be using for the development and how they will perform it. Implementation Upon implementation of the system, the hardware and software should be checked in order to assure the performance of the system. The owner as manager has ability to be responsible in using the proposed system. If there are errors and bugs, debugging will be conducted. There must be someone that will maintain the system. Review and Maintenance This is the last phase of the study. The review and maintenance is the observation of the user to the system to make sure that the system will be working efficiently, and to maintain the security of the system will surely cause less error and time consuming. The break-down of the system must be fixed by the technician or anyone from the company who is intelligent of fixing encounter problems on hardware. Maintain must be twice a year after implemented. The proposed system will be used for lifetime operation. Chapter IV

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Economic Feasibility The purpose of this chapter is measure of the cost-effectiveness of an information system solution of Farmacia Gentaro where the system will be implemented. Benefits The proposed system main goal is to develop a computerized system that allows fast transaction and accurate data recording. Famacia Gentaro will be benefited below: Tangible benefits: 1. Improves the productivity of process and personnel 2. Lowering the cost of products and services purchased 3. Paper and postage cost reductions 4. Inventory reduction 5. Lead time reduction 6. Reduced stock obsolescence 7. Faster product / service look-up and ordering saving time and money 8. Automated ordering and payment, lowering payment processing and paper costs

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Intangible benefits: 1. Increases organizational transparency and responsibility 2. Accurate and faster access to data for timely decisions 3. Improved customer response 4. Saves enormous time and effort in data entry ; 5. More controls thereby lowering the risk of mis-utilization of resources 6. Facilitates strategic planning 7. Uniform reporting according to global standards Total Project Cost This phase explain the capital needed to finance the system in the implementation of it. This is all about the cost of the designate user of the system and the casual cost needed in the process. Table 4. Project Cost

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Estimated Project Cost Cost Thermal Printer

8,500.00

System and Programmer

22,000.00

Barcode Scanner

2,000.00

Total Project Costs

PHP 32,500.00

It is very important to choose the latest unit model so that it will be guaranteed that the proposed system will work efficiently and accurately and avoid disadvantages. It should be a known brand for the hardware and software to achieve the best performance of the system and also avoid conflict to prevent difficulty and disruption of the system failures and system requirements. Project Related Cost The estimated cost of the system proposal is about Php 32,500.00. Farmacia Gentaro has an income of Php 60,000.00 - 70,000.00 a month, they can instantly get back the money spent from the project system, to have an effortless and continuous transaction to work completely when the proposed system implemented. Operational Cost

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This phase point out the cost need of the proposed system. When the system implemented the person who will be managing system will experience training to maintain the system. Table 5. Operational Cost

Operational Cost Expenses

Cost

Supplies

1,500.00

Maintenance

2,000.00

Total Expenses

3,500.00

Table above shows the operation cost monthly includes supplies and maintenance that will be using monthly. In supplies it includes the bond paper and ink. When the system encountered problems on hardware maintenance fee will be consumed. Accounting Methods This phase discussed explanation of the financial cost of the system and how to handle it expertly. Since Farmacia Gentaro is using manual basis in their daily business transaction. The proponents are implementing the system to the pharmacy to automate their POS and make the transaction fast and reliable. Point of Sales System is designed to develop a faster transaction. It is flexible in managing the stocks, sales and inventory report, and the new products order

accurately. The

following

sections

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shows

the

computation

how

economically feasible the system once it is implemented and how long will take to return the income of the pharmacy after buying the system.

Payback Period Analysis This deals with the time that it takes for the project to return the pharmacy investment. All else being equal, shorter payback periods are more preferable to longer payback periods. Below is the formula for payback period.

Payback Period =

Cost of Project Annual Cash Flow

Computation for the company: Payback period = _Cost of Project_ = 32,500.00 Annual Cash Flow

720,000.00

= 0.045 X 365 days = 16.425 days or 2 weeks and 2.452 days Therefore, the payback period is 16.425 days or approximately 2 weeks and 2.452 days. Using the payback period formula, the pharmacy will gain their investment in a span of 16.425 days. When the income is constant the case will be like this. On the other hand, after the system will provide better work, the payback period will be shorter because the pharmacy will gain more income before 16 monthstime.

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Return on Investment (ROI) Analysis Return on investment isn't necessarily the same as profit. ROI deals with the money you invest in the company and the return you realize on that money based on the net profit of the business. Profit, on the other hand, measures the performance of the business A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. Below is the formula:

ROI =

Gain from Investment x 100 Cost of Investment

In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should not be undertaken. On the other hand, Gain from Investment refers to gains of the company as they applied to the system, and Cost of Investments refers to the project cost.

Computation for the company: 22,000.00 – 10,500.00 = 11,500.00 (Gain from Investment)

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ROI = 11,500.00 x 100 32,500.00 ROI

=

35%

Therefore, the ROI is 35% that means the investment is profitable.

Based from the computation above, 35% of its investment will return to the company. This proves that the company is capable of buying the system and they can gain their investment back in a minimal time.

Chapter V SUMMARY, CONCLUSIONS AND RECOMMENDATIONS This chapter discusses the summary and findings in the study. The conclusion and recommendation is provided for the company, the user, and the future researchers. POS (Point-Of-Sale) machines and cashless transactions are an integral part of today’s shopping experience. It provide businesses with the capability to retain and analyze a wide variety of inventory and transaction data on a continuous basis.

Summary This study aims to help Farmacia Gentario with its business process and make those more civilized. Farmacia Gentaro had continuous business process

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for over a years, continuous but salesperson had hard time, good system but not better for the company for the daily business transaction, manually taken but not always accurate it always depends on how the salesperson will do this work. The proposed system is operationally feasible. The needed resources are available anytime. The hardware and software required is of high quality and of reputable brand to minimize the time of the system to depreciate. The proposed system is technically feasible. The transaction process will become faster, accurate and updated. Unlike the manual process, the company can only update their stocks after the manual computation. The system will automate and make the stocks organized. The proposed system is also economically feasible. The cost of the system is just right to invest with. The companies can loss thousands of pesos every year in recording the manual transactions. An investment of Php 32,500 is nothing compared to what they loss in their manual system. The company will earn more than their investment and will make the business profitable. Conclusion The developer takes the owner problems in the business, to know what the need of Farmacia Gentaro is. The developer found that the problem of Farmacia Gentaro is the process of their manual sales and inventory and the transaction of purchasing item. Because sometimes they cannot monitor if they have a stock. So sometimes the process takes a long time in searching the items. Which obstruct in the customer and to the employee? And in terms of

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inventory they compute their sales through manual computation, and the owner does not know if the sales of Farmacia Gentaro will increase or decrease. The software is focused on the transaction of POS (Point of Sale), Inventory system, and report that gives benefits to the owner, employee, and to the user. The software meets the need of owner, the POS now is easier than the existing system the employee can easily search the number of items they have. And in terms of Inventory the owner can automatically see the sales of the day, because the software automatically give reports to the administrator account.

Recommendation One major concern of the proposed study is the people to benefit from it. They recommend this system to Farmacia Gentaro for fast process. It is very useful to same employees who in-charge of the stocks, sales, and inventory in their company. In using that system the process would be easily and quickly than the previous process. After thorough analysis of the system, final recommendations for the company and the future researchers are included in this chapter. For the Company: 1. The use of Point of Sale System in the company, Farmacia Gentaro will be beneficial in its business growth.

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2. This study aims to lessen time consumed by the manager and employee of pharmacy in recording, searching, retrieving of data. For the Future Researchers: 1. This feasibility study is to improve knowledge and understanding of the researchers of the system they are manipulating. 2. This study can be used as a basis to develop new studies.

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