Chapter I

THE PROBLEM AND ITS SETTINGS

Introduction

The world is changing with an amazing rate and the

technology is considered to be the key driver for these

changes. Many activities are handled electronically due to

the acceptance of information technology at home as well as

at workplace. Slowly but steadily customers around the world

are moving towards the internet banking and electronic

transactions are become popular.

Most of this day the business organizations are using

latest technology to ease their transaction and to improve

their business process to another level. They are now

applying computerized systems to their transactions

according to their needs. Point of sale system is one of the

most systems that are used of many businesses. It helps to

improve the process and to fasten the transaction with the

customers. Point of sale system is commonly used in fast

food chain, pharmacy store, grocery store and some of the

business that needs to monitor their transactions, sales and

financial status.
 Thes notable advantages of computer usage have made

this technology an indespensible tool in almost every

undertaking. It facilitated the accomplishment of tasks in

various workplaces.

JAFU Marketing is the subject of this study.

The JAFU Marketing started last November 2017 and is

located at Dist1, San Manuel, Isabela, owned by Mr. Jackson

Uy and manage by Mrs. Heifang. The business is on its

success in running. The products being sold meet the demands

of the time.

In the case of JAFU Marketing they are currently using

the existing sales and inventory system. Our Point of Sale

is specially designed for them to enhance their existing

system. Because of these, they accepted our proposed system,

Automated Point of Sale of JAFU Marketing. It optimizes

efficiency in monitoring and recording the stock in and

stock out of their products.

Therefore, the researchers decided to come up with a

study entitled “Automated Point of Sale of JAFU Marketing”,

that shall enhance its existing process of managing the

sales into a better one. This modification could help the

aforementioned business perform this essential function with

more speed and accuracy.

This study aims to improve the Sales and Inventory

system of JAFU Marketing by designing an automated system.

It shall help the business to maintain an accurate and

updated record of sales on hand and at cost. Whenever a sale

or purchase is being made, the Automated Point of Sale

System shall record the inflow and outflow of items. This

will help lessen the time, effort and money consumed in

conducting sales count. This will provide convenience to the

owner and staff of JAFU Marketing because an updated sales

count would be available anytime.

Ravi (2010) pointed out that manual sales systems are

time consuming, it is very tedious, lots of paper work, slow

data processing, it is not user-friendly environment and it

is difficult to found records due file management system.

In an early age when the most of the company are still

using the manual system in the sales and inventory most of

the company encountered so many problems and this is because

of the process of the existing system is too slow and too

long.

According to Kaye Morris (2010), manual inventory

management system can help sales and production managers

control costs by identifying lost sales due to inventory

shortages; inventory overrides on products that are not

selling; losses due to employee’s theft or damage.

Implementing an inventory management system can take a large

amount of time depending on the size and diversity of

inventory.
Conceptual Framework of the Study

A conceptual framework is very useful in a research to

outline the possible processes. It illustrates how and why a

project takes place, and about how we understand its

activities. An indication of designs and practices that

shape the way work is than in a project.

The figure 1 illustrates the Input-Process-Output

concept Point of Sale System. The input framework is

composed of requirements in terms of the user, software and

hardware. The user requirements consist of the username and

password of the authorized personnel such as the POS. The

system will run in an operating system that must be Windows7

or higher. The process framework is composed of 5 processes,

the problem identification, data gathering, design

development, testing and evaluation and system

implementation. If the process 1-5 is successfully done it

will proceed to the process 3 and lastly the output

framework, JAFU Marketing Point of Sale System.

According to IBM (October 2012) Innovations such as just-

in-time manufacturing bar codes and RFID tags have

revolutionized supply chain management. Unfortunately these

innovations have brought with it staggering amounts of data

 to deal with. This white paper outlines some of the major

factors affecting inventory and supply chain management.

INPUT PROCESS OUTPUT

Preliminary
System Planning
Investigation
POINT OF SALE SYSTEM
-Understand the  Analysis of the business
with ANDROID BASED
problem case
VIEWING OF REPORTS
 Task assigning
-Define the project OF JAFU MARKETING
scope and
System Analysis
constraints Perform fact-finding
through analysis of
-Gant chart organizational charts, user
defining the interview, documentation
development review, operation’s
observance
schedule and
Analyze project usability,
project team tasks cost, benefit, and schedule
data.
System requirements Evaluate feasibility:
Operational, Technical,
-User Requirements Economic

-Hard ware
specification

-Software
requirements

-System
Architecture
System Design
System Design User interface Design
Specification Data Design
System Architecture
-Front-end
application

System Implementation
Program Coding
System Testing
System Installation
and Evaluation

FEEDBACK
Statement of Objectives of the Study

GENERAL OBJECTIVE

The foregoing study aims to develop JAFU Marketing

Point of Sale System that will serve as a tool of JAFU

Marketing to enhance and to have a better transaction

performance.

SPECIFIC OBJECTIVES

1. In retail, it’s important to keep tight control over

cash receipts to prevent theft. The JAFU Marketing

Point of Sale System will provide log-in and password

program. This is the best way to secure all audited

files of the business that only the manager and

administrator can open, check for status and print the

files.

2. To develop a system that will generate accurate and

reliable reports that can be viewed through smartphone,

that only for manager and administrator.

3. It fulfills the needs of the user specifically the

manager and cashier because it accommodates the common

problems when it comes to transactions, business

process.
SCOPE AND LIMITATIONS

The study will focus on the development of Point of Sales

System for JAFU Marketing.

Scope

The system can do easy and faster transaction, do printing

like receipt using this system, saving list of the data and

manage the sales of the JAFU Marketing. The system can do

product entry that comes from the specific supplier and

choose the product delivered and its quantity. The system

will be able to provide report generation which includes the

daily, weekly, monthly and annual report of sales. The

system will also have the capability to compute the customer

bill, and able to print receipt.

It can accept barcode reading and count the number of

each product in inventory list and it has a meter percentage

and message alert so that the user can check and be warned

for their inventory list. It recognizes the availability of

the stocks and inventory in the store. It will be friendly

user and easy to understand the whole features inside of it.

In addition, the system has a tool form where the register

log-in account and settings of the system can be seen. It

will work compatibly with the use of windows Microsoft from

server 2008 up to windows 7.

Limitations

Only the administrator can operate the tools form of the

system. The proposed system does not cover the payments for

credits cards and checks. It only accept cash payments. The

foregoing study will only run with the use of Microsoft

windows operating system and will be limited to other

operating systems.

SIGNIFICANCE OF THE STUDY

JAFU Marketing Point of Sale System is intended to

provide an effective tool in sales. This will be beneficial

to the following entities:

Manager – He / She will know the reliable result of total

net and other reports of the business. Cashier – Less effort

on calculating transaction. Researchers – The proposed study

will be their guide and will help them to improve their

skills and hard work. Future Researchers - This research

will serve as reference for the future researcher that chose

point of sale system as their title.

DEFINITION OF TERMS

The operational and technical terms that used for JAFU

Marketing Point of Sale System.

Operational Terms

Log – In – For Security of the system. User requires

entering two important data, username and password.

Inputs – Information fed into a data processing system or

computer.

Process – A series of actions or operations conducing to an

end. Outputs – The information produced by the system.

POS – The place where sales are made. On a micro level,

retailers consider a point of sale to be the area

surrounding the counter where customers pay.

Technical Terms

Visual Basic – The third generation event – driven.

Programming – Programming language and integrated

development environment from Microsoft for its COM

programming model. IPO (Input Process Output) – one of the

most fundamental designs patterns and makes perfect sense.

HIPO (Hierarchical Input Process Output) – Technique which a

tool for planning and/or documenting a computer program. It

consist of hierarchy chart and IPO charts.

 Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

The review of related literature aims to review the

critical points of current knowledge and or methodological

approaches in a particular topic. Literature reviews are the

secondary sources of the study. Hence, the researcher

gathered the following literatures to serve as a legal basis

of their study.

FOREIGN LITERATURE

According to Carolina Barcode Inc. (2013), a Point-of-

Sale system is a computer software and hardware networked

together to track sales and inventory as they occur. Point-

of-Sale systems will solve a multitude of problems in your

business. It is one of the focal points of any retail or

hospitality business in the cash register. The ability to

process transactions and tender cash are essential to the

efficient operation of the enterprise. If you have a lot of

cash transactions, replacing the cash registers with a

Point-Of-Sale (POS) system save you money.

According to Kaye Morris (2010), manual inventory

management system can help sales and production managers

control costs by identifying lost sales due to inventory

shortages; inventory overrides on products that are not

selling; losses due to employee’s theft or damage.

Implementing an inventory management system can take a large

amount of time depending on the size and diversity of

inventory.

According to the thesis of Carlo Magno “There was a

ground swell to move from paper signature and documents

because the task of record management was huge. We had file

cabinets full of backup materials. By converting from manual

process, we would be able to eliminate a lot of paper. We

could go further with the automation of manual process and

remove manual paperwork if people trusted the technology.

According to Dolley, Frank (2005), This means that the

seller may have run out of product due to an inaccurate

forecast. Or the supplier may have shipped an incorrect

package size. Products in inventory may be unfit for sale

because of damage or an expired shelf life. Finally, a

seller may not have the capability to accurately track

inventory in their stores or distribution centers.

According to Raley (2012), A manual inventory system is

updated, maintained and controlled without using a technical

system. This means the business updates the inventory by

physically counting the inventory items on a frequent basis.

Manual inventory systems are time consuming, as the business

owner must keep track of inventory sales on a daily basis,

while updating the system manually at the end of the day

According to Jane (2012), An inventory tracking system

is often a technological system that helps a business owner

control the items in an inventory. The tracking system

essentially tracks all of the items that leave the

inventory, whether the purpose is for constructing products

or for direct sales. An inventory tracking system can also

include other aspects of inventory control measures, such as

technological locks, employee entry cards to the inventory

and daily inventory reports

According to Heizer & Render (2001) pointed out; that

record accuracy is one of the important factors to be

considered in sales and inventory management. Good inventory

policies are useless if management does not know what

inventory is on hand. It allows the management to move away

from being sure some of everything is in inventory to

focusing on only to those items that are needed. The

organization can determine accurately how many supplies

left, and they will be ordered from the suppliers, they will

also have a good decision making base one the reports on

hand.

According to Juarez (2010), Beyond it being time

consuming, inventory counts and incorrect sales figures can be

detrimental to your business.

FOREIGN STUDIES

According to Carter (2012), Point-of-sale systems have

replaced traditional cash registers, largely for

functionality reasons. POS systems, as they are sometimes

called, are relatively easy to use and help provide valuable

data for important decision makers. In order to keep up with

the record-keeping needs of small and mid-sized businesses,

a good point-of-sale system is necessary. Web-based point-

of-sale systems are preferred over software- based point of

sales systems

because they are easily upgradeable, and feature access from

multiple computers.

According to Ganderton (2010), The best thing about

having a computerized POS System in your retail businesses:

as new stocks arrives and as it is sold, it keeps the stock

levels current and updated, hence making it is easier to

identify which items are selling and which items are not.

APOS System is also good in checking for any obsolete or out

of date stock that needs

to be disposed. If you are still counting your inventory man

ually on the shelves or in thewarehouse, you should think

twice about your method, for there are many advantages in

using a POS System. One advantage of a POS System is its

ability to help your business achieve detailed real-time

stock level information. In addition, a POS System can also

give you information such as weather forecasts, public

holidays and major sporting events, which can be of great

help in determining the stock level of seasonal products.

You can now efficiently and effectively handle your stock

management accurately.

According to Mueller (2011),

One of the biggest, and probably one of the most important,

advantages of an automated sales and inventory system is

that it helps businesses focus on their biggest goal, to

improve the customers experience at the store. With this

system, companies can have a better understanding of

customer demand through the analysis of their sales and

inventory

LOCAL LITERATURE
 According to Magat (2007), The Sales and Inventory

System of the vital to any institution, agency, or

department. The proper safekeeping, processing and disposal

of records play important roles in the efficient, effective

and smooth operation that eventually would lead to the

success attainment of the goal and objectives of

institution, agency and department concerned. Based on her

recommendation there should be a central record management

office that will hold data of the agency to serve as locator

of the record and to control the disposal of each record.

This can be possible with computerized system. Computer with

the appropriate software package is capable of handling

records efficiently and effectively. In addition, locating

records that are computerized is faster than finding them in

the filling cabinet.

According to Gemma Navarro (2012), Computer is general

purpose device which can be programmed to carry out a finite

set arithmetic or local operation. Computer has

a big rule in our nation today because of our technology. Wh

erever you go computer stillexist, especially in business it

makes the procedure easy and secure by programming the

manual system into a computerizing system. The rule of

technology in our life today has a big impact.

 According to Averion, Gaela, and Libo (2009), stated

that inventory system help to minimize the difficulty of the

manager in processing inventory because physical counting

products, stocks and computing inventory summary will be the

system job. It will monitor the availability of products,

items to prevent under stocking, over stocking and running

out of stocks. The system will also simplify the transaction

between dealer and supplier relationship because of the

updated supplier information and price list of items will

correspond to collaboration with other supplier.”

According to Vitez (2000), Operational point of sale

processes include physical counts of sales, management-

authorized purchase orders for new point of sale inventory

or restricting employee access to prevent theft, fraud or

abuse. Controlling the point of sale can help companies

lower operating costs and improve overall efficiency.

According to Jane (2011), Sales management is an important

business function since sales usually represent the second

largest expenditure in a company outside of payroll.

Business owners and managers typically create an sales

control system to help them with inventory management. A

control system is the physical and written policies or

procedures employees must follow when completing inventory

tasks. In today’s business environment, most point of sale

control systems involve the use of computers a software for

electronically transferring business information.

According to S. Angeles a writer of Business news daily

(2016) Shop Keep is the best pick of POS for retailers

because it is a cloud based service meaning applications,

services or resources made available to users on demand via

the internet from a cloud computing provider’s servers.

This POS system for retailers comes with a ton of

useful features. Offers plenty of tools to help the

retailers to save time and boost sales, spend time growing

the business and less time worrying back-end processes. It

can be easily to manage inventories, gather information,

boost sales, manage employees and reports can be generated

straight from the point of sale system.

LOCAL STUDIES

According to J.De Leon and M. Ferrer (2009) Under the Koread

RedGinseng Enterprise Sales and Inventory System, the

researchers came up with a computerized sales and inventory

system. The proponents used database to easy access of files

and for easier and faster processing of the selling and

inventory transaction. The program was designated to

generate reports such as monthly reports, inventory reports,

sales invoice and list of items.