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Pamantasan ng
Cabuyao
Katapatan Subdivision Banay-Banay, Cabuyao City
Laguna 4025
COLLEGE OF BUSINESS ADMINISTRATION
Tel No. (049) 832-0427 AND
ACCOUNTANCY
THE EXISTING AND PROPOSED

SYTEM OF
PEERLESS LION CORPORATION
A PROJECT PROPOSAL PRESENTED TO

INFORMATION
AND TECHNOLOGY OF SYSTEM ANALYSIS AND
DESIGN
PAMANTASAN NG CABUYAO
CITY OF CABUYAO, LAGUNA
GELYN C. CRUZ
MARY JELVIE L. EVARISTO
JOHN KEVEN FABILA
KAYCEE C. MACUTONG
AIRA MAE P. PAYAS
MARICAR G. PUNONGBAYAN
MARCH 2016
Pamantasan ng
Cabuyao
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
TABLE OF CONTENTS
Page
Title Page. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Background of Company . . . . . . . . . . . . . . . . . . . . . . . . . . .
Existing System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Flowchart(Existing & Proposed) . . . . . . . . . . . . . . . . . . . . .
Project Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Budget Cost and Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interview Questionnaires. . . . . . . . . . . . . . . . . . . . . . . . . . .
Interview Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interview Result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Project Proposal (introduction) . . . . . . . . . . . . . . . . . . . . . .
Project Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Project Proposal Flowchart . . . . . . . . . . . . . . . . . . . . . . . . .
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recommendation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Introduction
An inventory control system is a system that encompasses all aspects of

managing a company's inventories; purchasing, shipping, receiving, tracking,
warehousing and storage, turnover, and reordering. In different firms the
activities associated with each of these areas may not be strictly contained
within separate subsystems, but these functions must be performed in
sequence in order to have a well-run inventory control system. Computerized
inventory control systems make it possible to integrate the various
functional subsystems that are a part of the inventory management into a
single cohesive system.
In today's business environment, most of businesses have come to rely on

computerized inventory management systems. Certainly, there are plenty of
small retail outlets, manufacturers, and other businesses that continue to
rely on manual means of inventory tracking. Indeed, for some small
businesses, like convenience stores, shoe stores, or nurseries, purchase of
an electronic inventory tracking system might constitute a wasteful use of
financial resources. But for other firms operating in industries like
manufacturing company that feature high volume turnover of raw materials
and/or finished products, computerized tracking systems have emerged as a
key component of business strategies aimed at increasing productivity and
maintaining competitiveness. Moreover, the recent development of powerful
computer programs capable of addressing a wide variety of record keeping
needsincluding inventory managementin one integrated system have also
contributed to the growing popularity of electronic inventory control options.
Given such developments, it is little wonder that business experts commonly

cite inventory management as a vital element that can spell the difference
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between success and failure in today's keenly competitive business world.

He noted that companies that make good use of this technology are far
better equipped to succeed than those who rely on outdated or unwieldy
methods of inventory control.
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COMPANY HISTORY
In October 1891, founder Tomijiro Kobayashi established T.
Kobayashi & Co. in Kanda, Tokyo, to trade in the raw
materials for soap and matches.
Thereafter, T. Kobayashi & Co. began manufacturing soap

and toothpaste, taking the first steps to becoming a
manufacturer. However, the toothpaste and soap businesses
were to present differences that gradually became more
pronounced, prompting T. Kobayashi & Co. to specialize in
toothpaste. This company later became the Lion Dentifrice
Co., Ltd. The soap business was spun off as Lion Soap Co.,
Ltd., which later became Lion Fat and Oil Co., Ltd.
The two companies continued to expand their businesses

independently, and merged in 1980 to give rise to Lion
Corporation.
Corporat
e Lion Corporation
Name
Foundati
October 30, 1891
on
Establish September 1918

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ment
Capital 34,433 million (as of December 2014)
Address 3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644, Japan
President Itsuo Hama
Employee Consolidated: 6,816

s Non-consolidated: 2,467 (as of December 31, 2015)
The manufacture and sale of toothpastes,

toothbrushes, soaps, cleansers, hair- and skin-care
Operatio
products, cooking-related products, and
ns
pharmaceuticals.
Exports to overseas affiliates.
Consolidated: 378,659 million

Net Sales Non-Consolidated: 253,887 million
(FY 2015)
Since its foundation, Lion has been doing its utmost to provide
safe, high quality products and services that promote healthy,
comfortable lifestyles. Upholding this effort in the procurement of
raw materials and the purchase of products, and with the
cooperation of our business partners, we shall:
1. Comply with prevailing laws and social norms and
engage in appropriate, rational transactions with
every business partner in a freely competitive
framework that is equitable, fair and transparent;
2. Rationally select business partners not only on the
basis of quality, cost and timely delivery, but also
regulatory compliance, environmental protection,
labor, and human rights, to fulfill our responsibility to
customers and to create a sustainable, healthy
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society;
3. Respect the confidentiality of business partners
information and intellectual property rights and never
engage in inappropriate or unethical acquisition or
use of such information or rights;
4. Never offer business entertainment, gifts or monetary
compensation to unfairly obtain profit;
5. Fulfill our social responsibilities together with our
business partners with a shared commitment to co-
existence and co-prosperity.
Enacted: October 1st, 2008
Revised: October 1st, 2013
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Flowchart (Existing
START
Organize Stock Take Team
Prepare Pre count tag for

Stock on hand
Freeze Inventory through PDF

copy
Discrepancy YES Investigate
NO Cause of Variance
Enter Physical Count in

Reconcile Inventory
Stock Locator and provide
Pdf copy
Provide PDF copy
Sign off & File records
END
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START
Organize Stock Take Team
Prepare Pre count tag for

Stock on hand
Freeze Inventory through PDF

copy
Discrepancy YES Investigate
NO Cause of Variance
Enter Physical Count in

Reconcile Inventory
Stock Locator and provide
Pdf copy
Provide PDF copy

A
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There is a warning that the raw

materials already reach their
quota (half of their total raw
materials inventory)
Does the management wanted

Ask the manager for
to generate stocks in order to
meet the required items for the
YES approval or verification
next production
The form is generated

automatically upon the
NO
managers approval
They will decide if they are

The supplier will receive
going to use up all the raw
the form and deliver the
materials left.
needed raw materials right
away
Tracking the product

automatically to make an
assurance that the product
will deliver to us
B B
The system will

automatically update the
tax and shipment rate
END They can adjust their selling price

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PROJECT PLANNING
INTRODUCTION
Purpose of Plan
The Peerless Lion Corporation will provide a definition of the project, including the
projects goals and objectives. Additionally, the plan will discuss their existing and
proposed system.
The Project Plan defines the following:
Project purpose
Business and project goals and objectives
Scope and expectations
Roles and responsibilities
Assumptions and constraints

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Project management approach
Ground rules for the project
Project budget
Project timeline
The conceptual design of new technology
Project approach
Phase I: Secure agreement or permission letter from instructor
Phase II: Sent the letter to the interviewee for approval of an interview
Phase III: Discussion and Presentation of Interview Questions
Phase IV: Set the date of the availability of the interviewee
Phase V: Conduct the Interview
Phase X: Secure Equipment

In Phase I, We compose a permission letter addressed to our instructor for his
approval in the interview that we will conduct in a certain business or company about
the system that they use and that will be a proof that we showed to the interviewee.
In Phase II, We go to our target company to show our letter signed by our
instructor about the interview that we will conduct with them and ask for their approval if
they will allow us to.
In Phase III, We discuss with them our goals and purpose about the interview
that we will conduct and the questions we prepare for them if it is okay to be answered
or will remain to be confidential and if so, will lead to the revision of the questions.
In Phase IV, We became flexible with our schedule to match their availablity.
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In Phase V, We throw them the questions that we have and get the answer that
we need about their system and all that supports it.
Business Goals and Objectives
The business goals and objectives for this project will focus on the shortcoming
of the corporation and how will they improve it such as:
Facilitates coordination and information sharing both internal and external to
the participating organizations.
Facilitates coordinated crime prevention and reduction.
Provides high levels of data security.
Project Goals and Objectives
- Recount the inventory

- Match the units of measure
- Verify the part number
- Look for missing paperwork
- Examine scrap
- Investigate possible customer ownership
- Investigate possible supplier ownership.
- Investigate backflushing records
- Accept the variance
SCOPE
Scope Definition
The project will introduce new form of improvement to their system,including the:
Automatic tracking of raw materials in their storage area when it came at a
half level ratio that will give warning whether to order or not
Items Beyond Scope
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The project does not include the:

The date of arrival of raw materials that have been ordered abroad
ASSUMPTIONS
Project Assumptions
The following assumptions were made in preparing the Project Plan:
Employees are willing to improve their software system to make a warning

about the level of their inventories in storage area and will automatically
sent an order form abroad when the company approves
Management will ensure that project team members are available as

needed to complete project tasks and objectives.
The Accounting Department will participate in the timely execution of the
Project Plan (i.e., timely approval cycles and meeting when required).
Failure to identify changes to draft deliverables within the time specified in
the project timeline will result in project delays.
Mid and upper management will foster support and buy-in of project goals
and objectives.
The Corporation will ensure the existence of a ecological infrastructure that
can support the waste management project in their inventories.
Project Constraints
The following represent known project constraints:
Project funding sources are limited, with no contingency.
Due to the nature of law enforcement, resource availability is inconsistent.
Raw materials are from abroad

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Related Projects
None known.
Critical Project Barriers
Unlike risks, critical project barriers are insurmountable issues that can be
destructive to a projects initiative. In this project, the following are possible
critical barriers:
Removal of project funding
Natural disasters or acts of war
Should any of these events occur, the Project Plan would become invalid.
PROJECT PROPOSAL(Introduction)
Inventory is basically the total amount of goods and materials held in stock by a
factory, store,company or other businesses. An inventory system is a process whereby
a business keeps track of the goods and material it has available. Todays competitive
environment is forcing companies to optimize the procurement processes and inventory
levels while at the same time ensure accuracy of controls and implementation of
standard procedures for the flow of materials. However, in the absence of appropriate
systems and information infrastracture,companies are finding it difficult to achieve
smooth and efficient.And what comprises an inventory is their raw materials which is the
main component of it and thus should be to be the focus of each business.
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CONCLUSIONS:
Japan is known as one of the well developed country and has the highest rate of
people using advance technology. That is why Peerless Lion Cororation is still in the
market and they continue to venture the soap businesses.Using advanced technology
and the knowledge to manage such a large corporation, they are able to maintain the
position where they are now. They adapted several techniques to develop their
inventory system.
At first glance, by studying their existing system it seems like there are no
problems with it. But as we observe further we come to discover that there is something
that is lacking in their existing system since they are importing their raw materials
abroad.And since they are a very large corporation and doing their inventory once a
month, they may come a point that before they do the tracking, they are already in the
low number of raw materials which are very bad to happen to them since they supply
one of the things that can considered as a basic necessity nowadays because it came
to be a personal hygiene and used all day. Tax paying is a must in every country and
with it that we import our goods from Japan, we may be subjected into different tax rates
and shipping rates at different ordering period.
RECOMMENDATIONS:
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In accordance with the findings of the study, A Project Proposal Presented to

Information and Technology of System Analysis and Design, and on the basis of the
above conclusions, the following recommendations are made:
1. The researchers recommend to make a system that will track where is the
ordered materials located to have an assurance that our product is moving from
time to time.
2. The researchers recommend to make a system that will automatically give you a
warning if their inventory is at half level and will sent an order form or not
3. The researchers recommend to make a system that will update the corporation
based on the present tax and shipping rates of the inventories
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INTERVIEW QUESTIONNAIRES
1. How often does the company check their inventories?
2. What are the possible actions theyll do if they encountered discrepancies in

the count of inventory?
3. Who do the checking of inventories?
4. In the current inventory system, is there any problem that occurs?
5. Does the company implements a strict regulation regarding their system.
6. If you would rank the efficiency of the current system. What would it be? (1 is
the lowest and 10 will be the highest)
7. What are the items that you have in your inventory?
8. How do you keep track of the information on the items?
9. Do you have a computerized inventory system?
10.Do you have a regular visibility into excess and obsolete stocks, and is it
linked to targeted action
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plans to sell off or reduce this inventory?

11.Are you able to break down your operating inventory into the three major
categories when reporting levelssafety, replenishment and excess or obsolete
stock?
12.Can forecasting help in controlling inventory?
13.What makes a good forecasting model?
14.Are all classes of inventory items physically counted?
15.Does management compare quantities received against receiving

reports/documents?
16.Does your management approve the write-offs of obsolete inventories?
17.What are the important considerations in inventory control?
18.How can the value of inventory be determined?
19.What are the types of reordering systems that can be used in inventory
control?
20.What should be recorded in a physical count of inventory?
INTERVIEW PLANS
1. Check the interview questions:

To check the questionnaires if there are necessary adjustments or changes
before conducting an interview.
2. Build Rapport:
Provide instructions and ask rapport-building questions to put the
interviewee at ease.
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Example: Hi Ms. Adriano, thanks for answering our call. I am Kaycee

Macutong , a student of Pamantasan ng Cabuyao. Are you not busy today?
If you are not busy next week we would like to conduct an interview.
3. Establish Structure:
Establish the interviewer as in control and lets the interviewee know what
to expect.
Example: During the next hours or so Gelyn and I will ask questions
regarding the existing system of the company you are working with. I will
record our conversation to help me remember what we discussed
4. Provide Topic Preview:

Ensure that the interviewer is capable of answering the questions.
Example:Before we get started we would like to make sure that the
questions we ask can provide the answers we are looking for
5. Ask Interview Questions:

Gather information through planned questions. ExampleOk. Gelyn has
the first question for you (ask the planned information gathering
questions)
6. Close the interview:

Explain the next steps in the process and end on a positive note.
Example:Thank you for allowing us to conduct an interview. We really
appreciate that you participate in this
INTERVIEW RESULTS
1. PLC Corporation checks their inventories once a month.
2. When a discrepancy in the count of the inventory occurs, we perform three
steps/actions in order to correct it. First, is to investigate what went wrong. Next
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is to identify the cause of variance. A variance in an inventory means the

difference between the actual number, amount, or volume of an inventory item
and the balance shown in the inventory records. Such differences are
summarized in the variance report that is prepared to record and rectify
inventory control problems. The last action is to reconcile the inventory.
Inventory reconciliation is needed to ensure that the actual and recorded
inventory amounts are the same at the end of the year, so that there will be no
issues when the inventory is audited. Inventory reconciliation is not as simple as
adjusting the book balance to match the physical count. There may be other
reasons why there is a difference between the two numbers that cannot be
corrected with such an adjustment. In particular, you should consider following
any or all of these steps:
- Recount the inventory
- Match the units of measure
- Verify the part number
- Look for missing paperwork
- Examine scrap
- Investigate possible customer ownership
- Investigate possible supplier ownership.
- Investigate back flushing records
- Accept the variance
3. Accounting staffs are in-charge in checking the inventories of a company.

4. There is none, so far.
5. Yes. An inventory system needs a strict regulation this is integral to the
bottom-line success of product resellers. Driven by inventory software programs,
inventory systems include management of the movement of goods from
distribution center to retail store and the related flow of information. Any delays
or inefficiencies in a company's inventory control system severely inhibit profit
potential.
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6. I guess it would be 9 in terms of efficiency due to the fact that we havent

encountered any problem at all up to this point.
7. We have inventories for raw materials, packaging materials, office supplies,
imported goods, and finished products.
8. We keep track of the information on the item by means of written documents
from the concerned departments.
9. Yes, we do have a computerized inventory system in our company.
10. This breakdown makes it easier to make sound decisions about appropriate
levels for each of these three areas. It helps determine the minimum safety
stock needed to provide an insurance policy against supply chain problems
either from manufacturing glitches or distribution uncertainties so that
customers get what they ordered. It's useful for pinpointing the amount of
inventory required to replenish deliveries every two weeks. And it helps
companies find ways to avoid a backlog of excess or obsolete inventory.
11. Yes, we do have. Typically, excess and obsolete stock stems from ineffective
sales forecasting, planning or using a business model that fails to factor in
product complexity and life cycles correctly. Inventory leaders establish
processes to determine why excesses are being created and then develop a plan
of action to sell it off. In some instances, the fear of the write-off has led to a
large buildup over time of obsolete inventory.
12. Yes. As the term suggests, forecasting is making an informed prediction
about placing an order. Using forecasting models such as determining reorder
points and economic order quantities can help ensure optimal inventory control.
through the use of forecasts inventory levels can be set to meet the demands
while keeping levels as low as possible.
13. A good forecasting model is:
It should be timely
It should be as accurate as possible
It should be reliable
It should be in meaningful units
It should be presented in writing
The method should be easy to use and understand in most cases.

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14. Yes. All classes are physically counted.

15. Yes. The management compare quantities in order to check whether there is
a fraud that happens in the acquisition of the item
16. Yes, the management approves the write-offs to make an adjustment in the
physical count of the inventory item
17. For inventory control to work at its best a store must consider the costs of
acquisition, carrying, ordering, and stock-out. The store must also look at its
reordering system, its budgeting for inventory, insurance and forecasted
demand.
18. The value can be found using four methods in inventory control. The first is
the specific cost in which each item's cost is added together for the inventory's
value. A second method is to use the weighted average of the costs for a period
to determine value. A third method is first in, first out. In this method value is
measured using the latest costs of goods while working towards the beginning of
the period until all goods in inventory are valued. The final method is last in, first
out. In this method the costs of gods at the beginning of the period are used to
determine the inventory's value much like FIFO.
19. There are several types of reordering systems, in this module we discussed
three. The fixed order quantity uses fixed quantities of goods ordered at various
order points to replenish inventory. The fixed order period use fixed times of
reorder with various order quantities to replenish inventory to preset levels. The
final system, just in time uses a constant flow of goods to match the level of
demand.
20. When conducting a physical inventory the classification, location and number
in stock of a good should be recorded.
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PROJECT PROPOSAL
FOR
AUTOMATIC TRACKING OF RAW MATERIALS INVENTORY PROJECT
PROPOSED BY
CRUZ, GELYN C.
EVARISTO, MARY JELVIE L.
FABILA, JOHN KEVEN
MACUTONG, KAYCEE C.
PAYAS, AIRA MAE P.
PUNONGBAYAN, MARICAR G.
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Project Summary
Name of Project Automatic Tracking of Raw

Materials Inventory Project
Type of Project Imposed Improvements in

the Accounting
Department
Location of Project Airstrip St., Silangan

Industrial Park,
Canlubang , Calamba City,
Laguna
Type of Project Beneficiaries 20 and more

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Duration of Project 3 months
Legal Status The project has been consolidated to the

top management with the participation of the involve
accounting staff.
Corporations budget allocation P 450,000.00

Shareholders contribution P 200,000.00
Total Cost P 650,000.00
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Background and Problem Analysis
Our proposed project is a real time implementation of

inventory control system for a corporate management.
This project is specific in that implies and consider the
companies problems to be resolved for better
performance of the employees and good service of
company itself. Currently, the corporation, the accounting
staffs specifically are responsible in monitoring inventory
by manual and computerized. This means that they have
to keep track information and details on what they sold
and what they have left at the end of the accounting
period. Even though they monitored the inventory
applying two methods, as Peerless Lion is a
manufacturer, they should not be shorten to their raw
materials and be updated on the availability of their
sources, and since they also export products abroad
being updated to tax and shipping rate is a must. A big
corporation like PLC needs to ensure that their orders will
arrived . We proposed a solution to keep track to each
and every raw material by dynamically linking it to the
product and as a result and create dependent relationship
to that product. At a specific time period, if the inventory
is at their desired quota(half of their total raw material
inventory), they have a choice if order forms are to be
generated to the specific suppliers in order to restock the
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required items for the next production. The software

takes into all accounts of decisions to be made and
verified by the manager. Keeping track on information on
tax and shipping rate helps them to allocate price
distribution.

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THE EXISTING AND PROPOSED

A PROJECT PROPOSAL PRESENTED TO

Flowchart(Existing & Proposed) . . . . . . . . . . . . . . . . . . . . .

Budget Cost and Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . .

Project Proposal (introduction) . . . . . . . . . . . . . . . . . . . . . .

Project Proposal Flowchart . . . . . . . . . . . . . . . . . . . . . . . . .

An inventory control system is a system that encompasses all aspects of

In today's business environment, most of businesses have come to rely on

Given such developments, it is little wonder that business experts commonly

between success and failure in today's keenly competitive business world.

Thereafter, T. Kobayashi & Co. began manufacturing soap

The two companies continued to expand their businesses

Establish September 1918

Capital 34,433 million (as of December 2014)

Address 3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644, Japan

President Itsuo Hama

Employee Consolidated: 6,816

The manufacture and sale of toothpastes,

Consolidated: 378,659 million

Organize Stock Take Team

Prepare Pre count tag for

Freeze Inventory through PDF

Discrepancy YES Investigate

Enter Physical Count in

Provide PDF copy

Sign off & File records

Sign off & File records

Organize Stock Take Team

Prepare Pre count tag for

Freeze Inventory through PDF

Discrepancy YES Investigate

Enter Physical Count in

Provide PDF copy

Sign off & File records

There is a warning that the raw

Does the management wanted

The form is generated

They will decide if they are

Tracking the product

The system will

END They can adjust their selling price

The Project Plan defines the following:

Business and project goals and objectives

Scope and expectations

Roles and responsibilities

Assumptions and constraints

Project management approach

Ground rules for the project

The conceptual design of new technology

Phase X: Secure Equipment

Provides high levels of data security.

Project Goals and Objectives

- Recount the inventory

The project does not include the:

Employees are willing to improve their software system to make a warning

Management will ensure that project team members are available as

Project funding sources are limited, with no contingency.

Due to the nature of law enforcement, resource availability is inconsistent.

Raw materials are from abroad

Removal of project funding

Natural disasters or acts of war