Progress ReportProgress Report

Best Tile Order Processing Best Tile Order Processing SystemSystem

Introduction and Introduction and BackgroundBackground

From humble beginnings, Best Tile Inc. started as a From humble beginnings, Best Tile Inc. started as a very small business with only 4 employees, 2 very small business with only 4 employees, 2 salespersons, 1 warehouse employee and 1 manager. salespersons, 1 warehouse employee and 1 manager. After working as a physical therapist for more than 10 After working as a physical therapist for more than 10 years, the manager realized his true passion was in years, the manager realized his true passion was in home re-modeling and not in pulled muscles, sprains, home re-modeling and not in pulled muscles, sprains, and rehab. Bob Maynes, along with partner Dave and rehab. Bob Maynes, along with partner Dave Causito who works in the warehouse, opened Best Tile Causito who works in the warehouse, opened Best Tile to serve the San Francisco bay area with all their tile to serve the San Francisco bay area with all their tile needs, whether it be in the kitchen, bedroom or needs, whether it be in the kitchen, bedroom or shower. When they first opened doors in 1992, orders shower. When they first opened doors in 1992, orders were written by hand, completed and loaded by the were written by hand, completed and loaded by the warehouse employee. Today, it has grown into a warehouse employee. Today, it has grown into a larger small business with over 20 employees and larger small business with over 20 employees and customers coming from as far south as Gilroy and as customers coming from as far south as Gilroy and as far north as Ukiah; however, the sales staff is still far north as Ukiah; however, the sales staff is still processing orders by hand. processing orders by hand.

Statement of ScopeStatement of Scope

As the amount of customers increase, the sales staff is As the amount of customers increase, the sales staff is unable to write complete orders fast enough to meet the unable to write complete orders fast enough to meet the demand. As much as the company wanted to hire more demand. As much as the company wanted to hire more staff, the fact that the amount of customers varied from day staff, the fact that the amount of customers varied from day to day makes it virtuously impossible to hire more staff. to day makes it virtuously impossible to hire more staff.

The purpose of this project The purpose of this project To develop a computerized system that can speed up the To develop a computerized system that can speed up the

processing of ordersprocessing of orders Reduce the customer’s wait Reduce the customer’s wait The anticipated benefitsThe anticipated benefits Reduce errors that are caused by manual processing of Reduce errors that are caused by manual processing of

ordersorders Finish order fulfillment earlier to more rapid order processingFinish order fulfillment earlier to more rapid order processing Increase in orders placed Increase in orders placed

Context DiagramContext Diagram

0

OrderProcessingSystem

WarehousePersonnel

Management

Sales Staff

Reports

OrdersOrders

Incomplete OrderNotification

BankCredit Card Approval

Bank Deposit

Payments

Credit Card Transaction

Unpaid OrderNotification

Interview QuestionsInterview Questions

For Manager:For Manager:What do you as a manager do in relation to the sales staff?What do you as a manager do in relation to the sales staff?

I check the daily transaction reports for problems. I check the daily transaction reports for problems. Are there any plans to implement on-line ordering of products?Are there any plans to implement on-line ordering of products?

Currently, no plans to implement on-line ordering.Currently, no plans to implement on-line ordering.What is done, if any, to ensure orders written by hand don't get What is done, if any, to ensure orders written by hand don't get

lost or written down incorrectly?lost or written down incorrectly?The current process involves the warehouse personnel catching any The current process involves the warehouse personnel catching any

errors during picking of the order. This is why we would like to errors during picking of the order. This is why we would like to have a system that would eliminate the hand-written process.have a system that would eliminate the hand-written process.

What would you want the system to do?What would you want the system to do?I would like it to replace the hand writing and increase speed of I would like it to replace the hand writing and increase speed of

processing orders.processing orders.Who is Best Tile's main client base?Who is Best Tile's main client base?

The client base varies from homeowners to contractors.The client base varies from homeowners to contractors.Are there different pricing for homeowners and contractors?Are there different pricing for homeowners and contractors?

No. Everyone gets the same price.No. Everyone gets the same price.

Interview QuestionsInterview QuestionsFor Sales Staff:For Sales Staff:

What does the sales staff do to capture clients?What does the sales staff do to capture clients?We don’t handle the marketing aspect. We just sell items and write up the orders.We don’t handle the marketing aspect. We just sell items and write up the orders.

Since you hand write orders, are you comfortable using a computer to process Since you hand write orders, are you comfortable using a computer to process orders?orders?

Yes, using a computer should not pose as a problem.Yes, using a computer should not pose as a problem.What do you do when you write up the order?What do you do when you write up the order?

We write the orders specifying the quantity, description, and price. Then we get the We write the orders specifying the quantity, description, and price. Then we get the payment from the customer. After receiving the payment, we hand the order payment from the customer. After receiving the payment, we hand the order over to the warehouse personnel to have the order loaded into the customer’s over to the warehouse personnel to have the order loaded into the customer’s vehicle. vehicle.

Do you know what happens if the items are not in stock.Do you know what happens if the items are not in stock.If the item is not in stock, the warehouse orders it from the suppliers, we, the sales If the item is not in stock, the warehouse orders it from the suppliers, we, the sales

staff, are then notified to notify the customer.staff, are then notified to notify the customer.Do you know what happens in respect to the supplier?Do you know what happens in respect to the supplier?

Yes, the supplier will send a monthly invoice to our manager for payment of the items Yes, the supplier will send a monthly invoice to our manager for payment of the items that we special ordered.that we special ordered.

How do you collect payment from the customers?How do you collect payment from the customers?Payments are usually paid during the purchase. Cash, checks, and credit cards.Payments are usually paid during the purchase. Cash, checks, and credit cards.

How are they handled? How are they handled? Cash is accepted. Checks are accepted with proper identification. Credit cards are Cash is accepted. Checks are accepted with proper identification. Credit cards are

handled though a bank processing center which tells us whether the card is handled though a bank processing center which tells us whether the card is approved or declined.approved or declined.

Desired System Desired System FeaturesFeatures Top Down PerspectiveTop Down Perspective

– Quick systemQuick system– Provide reportsProvide reports

Bottom Up PerspectiveBottom Up Perspective– Easy to useEasy to use

Cost and Benefit AnalysisCost and Benefit Analysis

AssumptionsAssumptions

Interest rateInterest rate 6.8%6.8%

Salvage valueSalvage value 23,000 23,000

Annual additional incomeAnnual additional income 40,000 40,000

Best Tile Capital Budgeting AnalysisBest Tile Capital Budgeting Analysis

20042004 20052005 20062006 20072007 20082008

Annual additional incomeAnnual additional income 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000

Salvage value Salvage value 23,000 23,000

Annual totalAnnual total 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 63,000 63,000

Total cash flowTotal cash flow 223,000 223,000

Present valuePresent value 181,443 181,443

Cost of investmentCost of investment 125,000 125,000

Net present valueNet present value 56,443 56,443

Event ListEvent List

Customer orders an item. (1.1)Customer orders an item. (1.1) Verify Customer Payment. (1.2) Verify Customer Payment. (1.2) Create daily report. (3.1)Create daily report. (3.1) Create inventory report. (3.2)Create inventory report. (3.2) Create payment report. (3.4)Create payment report. (3.4) Create order report. (3.3)Create order report. (3.3) Customer returns order.Customer returns order. Sales staff checks inventory for availability.Sales staff checks inventory for availability. Warehouse personnel checks inventory for Warehouse personnel checks inventory for

availability.availability. Warehouse personnel returns incomplete orders.Warehouse personnel returns incomplete orders. Sales Staff cancels order.Sales Staff cancels order. Sales Staff checks payment.Sales Staff checks payment.

Event: Customer Event: Customer orders an item. orders an item. (Process 1.1)(Process 1.1)

Orders

D1

Inventory Result Inventory

Inventory Query

Incomplete Order Notification

1.1

CheckOrderCompleteness

D2Order records

Sales Staff

Sales Staff

Complete OrderDelivery Ready Order

Event: Create daily Event: Create daily report. (Process 3.1)report. (Process 3.1)

Order records

Inventory level

Payment records

Reports

3.1

Create DailyReport

Inventory

D2Order Records

D5Payments

D1

Event: Create order Event: Create order report. (Process 3.3)report. (Process 3.3)

3.3

CreateOrderReport

Reports

Order Records

D2Order Records

Event: Create Event: Create inventory report. inventory report. (Process 3.2)(Process 3.2)

Inventory Level

3.2

CreateInventoryReport

InventoryD1

Reports

Event: Create payment Event: Create payment report. (Process 3.4)report. (Process 3.4)

3.4

CreatePaymentReport

ReportsPayment Records

D5Payments

Diagram ZeroDiagram Zero

Orders

Credit CardApproval

Reports

Orders

Incomplete OrderNotification

1

Processcustomerorder

D1Inventory

6

VerifiedPayment

3

Createreports

D2Order records

DeliveryReadyOrder

Item

Order records

Inventory level

4

Processorder fordelivery

Delivery Ready Order

ItemRequest

D5Payments

PrepareBankDeposit

Payment records

Payments

OrderRecords

BankDeposit

IncompleteOrder Notification

Payments

Credit CardTransaction

Unpaid Order Notification

Sales Staff

Bank

Management

Bank

Sales Staff

WarehousePersonnel

Process SpecificationProcess Specification

Process 1.1 Process Customer Order: Check Order CompletenessProcess 1.1 Process Customer Order: Check Order Completeness

SET CompleteOrder = trueSET CompleteOrder = trueRECEIVE Order from Sales StaffRECEIVE Order from Sales StaffLOOKUP ItemID and Order_QuantityLOOKUP ItemID and Order_QuantitySEND QUERY of ItemID and Item_Quantity to InventorySEND QUERY of ItemID and Item_Quantity to InventoryRECEIVE ItemID and Item_Quantity from InventoryRECEIVE ItemID and Item_Quantity from InventoryFOREACH ItemID FOREACH ItemID COMPARE Item_Quantity and Order_QuantityCOMPARE Item_Quantity and Order_Quantity

IF Item_Quantity is greater than Order_QuantityIF Item_Quantity is greater than Order_QuantityADD ItemID and Order_Quantity to CompleteOrderADD ItemID and Order_Quantity to CompleteOrder

ELSE ELSE ADD ItemID and Order_Quantity to Incomplete Order ADD ItemID and Order_Quantity to Incomplete Order NotificationNotificationSET CompleteOrder = falseSET CompleteOrder = falseIF CompleteOrder = trueIF CompleteOrder = true

SEND CompleteOrder to Order RecordsSEND CompleteOrder to Order RecordsSEND CompleteOrder as Delivery Ready Order for Process 4SEND CompleteOrder as Delivery Ready Order for Process 4

ELSEELSESEND Incomplete Order Notification to Sales StaffSEND Incomplete Order Notification to Sales Staff

ENDIFENDIF

Process SpecificationProcess Specification

Process 3.3 Create Order ReportProcess 3.3 Create Order Report

SET total = 0SET total = 0FOREACH OrderIDFOREACH OrderID

SHOW OrderIDSHOW OrderIDSHOW Order_DateSHOW Order_DateSHOW Order_QuantitySHOW Order_QuantitySHOW ItemIDSHOW ItemIDSHOW Item_NameSHOW Item_NameSHOW Order_PriceSHOW Order_PriceADDTO total Order_Quantity MULTIPLY Order_PriceADDTO total Order_Quantity MULTIPLY Order_Price

END FOREACHEND FOREACHSHOW totalSHOW total

Process SpecificationProcess Specification

Process 1.2 Process PaymentProcess 1.2 Process Payment

ENTER OrderIDENTER OrderIDLOOKUP Order_AmountLOOKUP Order_AmountENTER Payment_TypeENTER Payment_TypeENTER Payment_ Amount ENTER Payment_ Amount GENERATE PaymentIDGENERATE PaymentID

IF Payment_Type is Credit CardIF Payment_Type is Credit CardSEND Payment_Type and Payment_Amount to Bank for Approval SEND Payment_Type and Payment_Amount to Bank for Approval RequestRequest

RECEIVE ApprovalRECEIVE ApprovalIF Approval is ApprovedIF Approval is Approved

SUBMIT Payment_ID to Payment RecordSUBMIT Payment_ID to Payment RecordSUBMIT Payment_Amount to Payment RecordSUBMIT Payment_Amount to Payment RecordSUBMIT Payment_Type to Payment RecordSUBMIT Payment_Type to Payment Record

ELSEELSEREJECT PaymentREJECT Payment

ENDIFENDIFELSEELSE

SUBMIT Payment_ID to Payment RecordSUBMIT Payment_ID to Payment RecordSUBMIT Payment_Amount to Payment RecordSUBMIT Payment_Amount to Payment RecordSUBMIT Payment_Type to Payment RecordSUBMIT Payment_Type to Payment Record

ENDIFENDIF

Data DictionaryData Dictionarybank deposit = * deposit the payment to the bank*bank deposit = * deposit the payment to the bank* @payments + order records@payments + order recordscredit card transaction = * information maintained on customer’s credit card information and credit card transaction = * information maintained on customer’s credit card information and

payment * payment * {Payment_Amount} {Payment_Amount}credit card approval = * credit card approval information*credit card approval = * credit card approval information*delivery ready order = * information maintained the complete transaction of payment *delivery ready order = * information maintained the complete transaction of payment * @payments + orders + credit card approval @payments + orders + credit card approval

incomplete order notification = * Order is incomplete, items not available* incomplete order notification = * Order is incomplete, items not available* inventory level = * information maintained inventory record*inventory level = * information maintained inventory record*

{@ItemID + Item_Quantity}{@ItemID + Item_Quantity}item request = * the item that request by the customer*item request = * the item that request by the customer*item = {@ItemID + Item_Name + Item_Quantity + Item_Price}item = {@ItemID + Item_Name + Item_Quantity + Item_Price}reports = *report of transactions for the day* reports = *report of transactions for the day* {@payment records + order records + inventory level}{@payment records + order records + inventory level}sales staff = {sales-staff}sales staff = {sales-staff}orders = * the order requirement by the customer*orders = * the order requirement by the customer*

{@OrderID + ItemID + Order_Quantity + Order_Date + {@OrderID + ItemID + Order_Quantity + Order_Date + OrderAmount}OrderAmount}

payment = * amount paid by a customer for each order*payment = * amount paid by a customer for each order* * units: dollars* * units: dollars*

{@PaymentID + Payment_Amount + Payment_Type + {@PaymentID + Payment_Amount + Payment_Type + Payment_Date}Payment_Date}

payment record = * information maintained payment information*payment record = * information maintained payment information*{@PaymentID+OrderID+Payment_Amount}{@PaymentID+OrderID+Payment_Amount}

unpaid order notification = * information maintained the unpaid payment *unpaid order notification = * information maintained the unpaid payment *verified payment = * payment approval information*verified payment = * payment approval information*

Entity Relationship Entity Relationship DiagramDiagram

Supplier

SupplierID

Supplier_Name

Customer

CustomerID

Customer_NameStreet_AddressCityStateZip

Order

Order_PriceOrder_Q uantityOrder_DateOrder_Amount

Payment

PaymentID

Payment_AmountPayment_DatePayment_Type

Item

ItemID

Item_NameItem_DescItem_Price

Reorder

ReorderID

ReorderQ uantity

Employee

EmployeeID

Employee_NameStreet_AddressCityStateZip

Class DiagramClass Diagram1 *

11..*

1

*1

*

1 *

1

*

1

1..*

Customer

CustomerIDCustomer_NameStreet_AddressCityStateZip

CreateCustomerEditCustomer

Order

Order_PriceOrder_Q uantityOrder_DateOrder_Amount

AddItemCanelOrderEditOrder

makes

Item

ItemIDItem_NameItem_DescItem_Price

CreateItemEditItemRemoveItem

Reorder

ReorderIDReorderQ uantity

AddItemCancelReorderEditReorder

gets

Employee

EmployeeIDEmployee_NameStreet_AddressCityStateZip

AddEmployeeAddOrderRemoveEmployee

receives

Places

Supplier

SupplierIDSupplier_Name

CreateSupplierEditSupplier

comesfrom

Payment

PaymentIDPayment_AmountPayment_DatePayment_Type

AuthorizePaymentEditPayment

makes

inc ludes