Name : Alex Ellis

School : Oberlin High

Territory : Jamaica

Registration # : 100086

Teacher : Mr. Stanbury

Centre # : 100086

Date : April 2011

CONTENT PAGE

Acknowledgement 3

Problem Definition 4 - 5

Schedule of Activities 6

Ghant Chart 7

Analysis of the problem 8 - 10

Identification of solutions 11

Evaluation of Solution 12 - 14

Selection of Solution 15

Justification of Solution 16 - 18

Appendices 19 - 22

The researcher would like to thank God almighty for giving him the health and strength

he need to complete this Information Technology School Based Assessment, so as to meet the

requirements of the Caribbean Advanced Proficiency Examination syllabus. Also the researcher

would like to extend his gratitude to Mr. Stanbury for giving him this assignment and guiding

him along the correct path.

The researcher would like to say big thanks to his mother who encouraged him along the

ways as well his classmates who assisted him.

The researcher would also like to thank his fellow classmate for their assistant they gave

to him during the course of this assessment.

Richwal Trading Company located in the Buff Bay community in Portland has been in

operation since 1984. The company buys and sells lubricants, vehicle accessories and other

items. The company has an issue over the years of operation with its warehouse. The warehouse

of the company is holding area for inventories that are not displayed to the public. The issue the

company faces with its warehouse is the continuous lost of inventories, without anyone able to

give an account for the missing inventory or inventories. This has resulted in the company

loosing thousands of dollars each year.

This problem was started in 1990 when the company started purchasing a large amount of

stock so as to obtain discounts on purchases from its suppliers. The problem has grown over the

years since its inauguration in 1990 to a large scale because the company sales has increase due

to an increase in population and the lack of a good competitor to take a share of the market. This

issue as grown although there have been several changes in staff members because it is evident

that there is a loop hole to the company operations.

The problem with the warehouse affects both owners at workers of the company and also

the government of the country. The owners of the company is more affected by this problem

because the company would have to borne a higher cost of goods sold which will reduces the

company gross profit. A reduction in gross profit will see owners receiving a smaller amount of

net profit which is added to their capital. Workers of the company are affected emotional on a

diminutive scale because it’s not all the time they are called in and question about a missing

inventory. When they are called they can be interrogated in an ill mannered way, which makes

them feel disparage at times. The government an external body is affected without their

knowledge. The government which collects taxes on a percentage of profit could have received

higher revenue from collection of taxes if the company profits where higher.

The problem which is being investigated can be solved with the use of information

technology.

DURATION PREDECESSOR

TASK A Identification of Problem 4 NONE

TASK B Construct of Interview Questions 3 A

TASK C Construct of Questionnaire Questions 4 A

TASK D Carry out Observation 7 A

TASK E Report On Interview 2 B

TASK F Report on Questionnaire 5 C

TASK G Carry Out Background Research 4 A

TASK H Report on Background Research 1 G

TASK I Analyze Observation 3 D

TASK J Identification of Possible Solutions 3 I

TASK K Evaluation of Possible Solutions 5 J

TASK L Selection of most Feasible Solution 4 K

TASK M Justification of most Feasible Solution 10 L

TASK N Organization of Project 9 M

Indentification of Problem

Construct of Interview Questions

Construct of Questionnaire Questions

Carry out Observation

Report On Interview

Report on Questionnaire

Carry Out Background Research

Report on Background Research

Analyse Observation

Indentification of Possible Solutions

Evaluation of Possible Solutions

Selection of most Feasible Solution

Justification of most Feasible Solution

Organization of Project

Wednesday, January 5, 2011

Thursday, February 24, 2011

In order for the researcher to analyze the problem that Richwal Trading Company faces

several facts finding techniques would have to be used to gather data on the problem to find out

the possible cause or causes of the problem. The fact finding techniques that will be used consist

of an interview with the company’s manager, an observation at the company for one week, a

questionnaire that will issued to seven workers and a background research. These techniques are

expected to give causes of the problem that exist at the company.

An interview is a conversation between two people – the interviewer and the interviewee,

where questions are asked by the interviewer to obtain information from the interviewee.

Interviews allow for more interaction with the persons involve in the problem which will result

in better a feedback been given and more clear answers. However interviews are time

consuming. An interview with the managing director of the company about the problem the

company warehouse faces reveals that all workers at the company are granted access to the

company warehouse. The managing director also states that currently there is no worker assigned

to the warehouse to monitor the inflows and outflows from the warehouse, and that there are not

any documentation of the items kept in the warehouse.

A background research was done on problems relating to the one currently being

investigated. A background research refers to accessing the collection of previously published

and unpublished information about a site, region, or a particular topic of interest. It allows for

understanding of a problem or issue, but also can be out dated at times. The background research

showed that the cause of such problems is due to the lack of control systems which would

include; adequate documentation, segregation of duties, safeguarding and proper authorization.

A control system with the features listed above is likely to be efficient enough to give account

for inventory in a company. The research also indicates that security cameras are excellent

means of monitor inventory, since they are able to record all the activity that the camera covers.

An observation at the company warehouse was carried out for one week to gather more

data on the problem at hand. An observation as defined by the oxford dictionary is the act of

observing or watching of people, animals or things. The company presently employs a total of

seventeen (17) workers. During the week of observation all seventeen members of staff entered

the warehouse for various reasons without any authorization. Figure 2 in the appendices shows

the amount of workers that enters the warehouse during the week of observation. On day six of

the observation all workers entered the warehouse this was due to the amount of business activity

proceeding, on a day like this at the company it is unable to say who remove what from the

warehouse. The observation also highlighted that there is no individual that is assigned to the

warehouse to manage the daily operation of the warehouse. The observation also disclosed that

there were no alarm system or security cameras installed inside or outside of the warehouse, in

case of a burglary so as to give evidence or summoned the police. The observation also divulged

that the keys to the company warehouse were not monitored as well.

A questionnaire consisting of six open and close ending questions were issued to seven

workers at the company, they were fully completed and returned days after issue. A

questionnaire is a written set of questions answered by a number of people to provide

information for a survey. A sample of the questionnaire that is not completed can be seen in

figure 3 in the appendices. The questionnaire showed that eighty six percent of the workers

access the warehouse on a daily basis while the remaining fourteen access the warehouse but not

on a daily basis. All the workers indicated that they don’t need any permission or reason to gain

access to the warehouse, all is required of them is to fetch the key and help source whatever they

want for the daily operation of the business. Workers of the organization are of the view that

senior management and owners doesn’t want to invest in the company’s security but are more

interested in increase of their fringe benefits and allowances. Workers went on further to say that

the company can resolve this issue in no time because it has being growing over the years in size

and capital employed. Workers at the company would like for the problem to be resolve as quick

as possible because it can have a negative impact on them; where they are being accused at times

by other workers.

From the fact finding techniques used by the researcher to analyze the problem, it can be

concluded that the cause of the problem that the company faces is due to improper

documentation, no authoritative control over the warehouse and the lack of safeguarding. It can

also be concluded that company does not spend on security.

The researcher after reviewing and analyzing the problem by the use of four fact finding

techniques came up with two possible solutions for the company’s problem. These solutions are

namely:

Installation of security cameras and

Creation of a database management system to manage inventory.

In addition to the two possible solutions an alarm system would be installed no matter what

solution is chosen. It is said installation of both solution would make a very efficient internal

control system but would be too expense presently so an evaluation of the solutions would be

done before choosing the most feasible solution.

INSTALLATION OF SECURIY CAMERAS

The installation of security cameras would an excellent be a solution for solving the

problem the company faces because it posses the necessary criteria to get the problem solved.

Reason been security cameras will have a record of all activities that takes place in the

warehouse. Security cameras will also reduce theft since it will be drive fear into individuals who

indulge in these activities.

The installation of the security cameras will require the following: six security cameras, a

television, thirteen yards of cable, a desk for the television, a DVD player and a canesta of DVDs

for start of the project. The Personnel would be hired to watch the cameras on a daily basis

during the opening hours of the company. The cameras would be installed by a current member

of staff who will be paid four thousand dollars ($4 000.00). The company is expected to borne an

additional six hundred and fifty three dollars four cents ($653.04) to its electricity bill if the

cameras where to be installed each month. The total start up cost that the company will disburse

would be three hundred and twelve thousand four hundred and twenty dollars ($312 420.00) and

two hundred and ninety eight thousand eight hundred and thirty six dollars ($298 836.00) each

year after.

How will this solution work? The solution would work basically by making sure there is

full productivity and efficiency in the process. The six cameras that would be installed would

cover the entire area of the warehouse at once. All the data that is gathered by the security

cameras would be recorded on a DVD. There wouldn’t be an issue of time being lost when a disc

change is in process, because the DVD player that would be used for recording is a three disc

player. Any time that is lost in recording while the personnel is at work, he or she would be fine

based on the amount of time that is lost. The personnel will be responsible for proper storage of

the DVDs in case they are needed for future reference. The personnel which will be hired will be

from another parish and will work in isolation from the other workers. This will allow for no

communication between the personnel and the other members of staff.

CREATION OF A DATABASE MANAGEMENT SYSTEM

The database management system which will administer the company inventory will

necessitate a desktop computer, database management software, an ethernet cable, a computer

desk, personnel with the ability to use the computer as well as the software, and other basic

software such as Microsoft Office Word. This solution will have a startup cost of two hundred

and sixty three thousand and thirty dollars ($263 030.00) and a yearly cost of three hundred and

sixteen thousand nine hundred and three dollars ($316 903.00).

The personnel would be responsible for inflows and outflows from the warehouse. The

database management software that would be used would be built specifically for the company

purposes. Hence the software would be customized. The software will allow the user to input

inventories and the outflow of inventories. The system would be able to give the value of closing

and opening inventories at any given point for the warehouse. The personnel will be responsible

for the maintenance of the warehouse and this will cut a yearly cost of twenty four thousand

dollars ($24 000) which paid for warehouse upkeep.

The inventories that will be received and stored in the warehouse the personnel is

responsible to have a copy of the invoices that goes to the purchasing department and a stock

requisition card for the inventories leaving the warehouse so has to have a hardcopy and

signature attached to it for verification. The personnel hired have to liaison with the purchasing

and sales department in the company. This can create an ambiguity in solving the current

problem since the parties over time can form an alliance and create the problem all over again.

A solution like this if implemented can be linked to the company point of sale system in

the future through a network, if the company size remains the same. However if the company is

to expand, the warehouse can operate like a supplier to the company where there would be

complete control operations and no loose ends for the creation of a previous problem.

The problem highlighted above the most feasible solution would be to implement security

cameras. Security cameras if installed will be easily operated after installation all is required is to

watch a television and to load DVDs when needed, therefore there is not much technicality in

operating the cameras and other equipments. In the long term security cameras would be more

economical since the cost of keeping it each year is cheaper than keeping a database

management system, however the implementation cost is more expensive than implementing a

database management system. The solution is not involved in data communication and

networking because the security cameras work in seclusion from the rest of the company

operations. In Jamaica where the company is domicile it is legal to install security cameras

without informing anyone about them. Therefore it would be legal if the company is to install

security cameras without facing any legal formalities. The cameras and television is expected to

have a life span of twenty five years in the company and is also expected to be service only six

times in their life span.

The operational, technical, economical and legal aspects surrounding the solution dictate

that this is the most feasible solution for the problem that is mention in this research.

The solution which was given in the above section can be justified by weighing up the

other possible solution that was indentified earlier on. To justify the solution the criterion that

was used to evaluate the solutions identified would be used, as well as other criterion that

weren’t used in evaluation the of solutions. These criterions consist of; cost, personnel required,

software required, the efficiency of the solution and the impact it has on the environment.

The security cameras installation will have an initial cost of three hundred and twelve

thousand four hundred and twenty dollars ($312 420.00) which is more expensive than installing

a database management system which has an initial value of two hundred and sixty three

thousand and thirty dollars ($263 030.00). Although the security cameras installation are

expensive in the short run of the business, however they will work out cheaper in the long run

that is any time after three years of installation. This is as a result of the cost that is associated

with maintaining the each system. As depicted in figure four in the appendices where it shows

the total cost for each year, after year one the total cost of the security cameras installation is six

hundred and six thousand two hundred and fifty six dollars ($606 256.00) and five hundred and

seventy nine thousand nine hundred and thirty three dollars ($579 933.00) for database

management systems, nine hundred thousand and ninety two dollars ($900 092.00) for cameras

and eight hundred and ninety six thousand eight hundred and thirty six dollars ($896 836.00) for

database management system in year two, but as year three is completed there is a switch in the

higher total cost from security cameras to database management systems, where the security

cameras total cost are one million one hundred and ninety three thousand nine hundred and

twenty eight dollars ($1 193 928.00) and database management system is one million two

hundred and thirteen thousand seven hundred and thirty nine dollars ($1 213 739.00). It can be

clearly shown that if the company installs the security cameras it would be more economical than

implementing a database management system in the long run.

The solutions that were identified a personnel is required to monitor it. The database

management system would require a personnel with a certain amount of information technology

skills, while for the solution selected all is required of the personnel is the ability to read and

write. Since the personnel for the database management system will require special skills the

salary package will have to be higher than regular personnel what is required to watch a

television. It can be stated that the personnel that is required for the security cameras solution

would be much easier to recruit and maintain than an information technology personnel.

A database management system require a database software to manage the files that

would be stored, and the software that will be used is a custom software and getting a specialized

software can take time and some level of difficulty in getting the software updated. If the

software is to be updated it would require access to the internet. Accessing the internet can allow

hackers to gain access to the system and opening the gateway form virus and malwares. However

security cameras do not require any software, therefore it does not have to go through all the

problems that were just being highlighted.

Efficiency is a factor to consider when making a decision. In solving the problem on hand

the most efficient solution is the security cameras because it does not allow for any ambiguity in

its process while the database management system allow for a small amount since workers are

able to communicate with the person that is in charge of the system.

Another criterion would be the impact the solution has on the environment. Both

solutions are tied equally on this issue because they both does not affect the external

environment no more than the other.

F

FIGURE 1

INTERVIEW QUESTIONS

1. What is the problem that the company faces with its warehouse?

2. How long has this problem being in existence?

3. What do you think are the causes of this problem?

4. Who are the persons who are granted access to the warehouse?

5. Is there any worker with the responsibility of monitor the

warehouse?

6. How this problem does affect the organization?

7. Can the company afford to put a system in place to resolve this

problem?

8. What kind of system would the company like to resolve this

problem?

DAY ONE DAY TWO DAY THREE DAY FOUR DAY FIVE DAY SIX DAY SEVEN0

2

4

6

8

10

12

14

16

18

ENTEREDDID NOT ENTERED

FIGURE 2

QUESTIONNAIRE1) Do you access the warehouse on a daily basis? Yes No

2) Do you need permission to access the warehouse? Yes No

3) What is your view on the problem that company faces with the warehouse?

_______________________________________________________________________

_______________________________________________________________________

4) How do you think the company can resolve this issue?

_______________________________________________________________________

_______________________________________________________________________

5) Does this problem affect you as a worker? Yes No

6) If yes, how does this problem affects you?

_______________________________________________________________________

_______________________________________________________________________

FIGURE 3

Daily Acces86%

Not Daily14%

Uses the Warehouse Daily

FIGURE 4

YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 50

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

DATABASE MAN-AGEMENT SYSTEM

SECURITY CAMERAS

FIGURE 5