Installation of Operations Software in Lis Chemist - Case Study Example

Student’s Name: Instructor’s Name: Class Name: Date when Due: Installation of Operations Software in Lis Chemist Business Case Lis Chemist has been operating for 2 years. It is located in an area that has proximity to many customers and supplies them to other retailer shops in bulk. However, the chemist also sells to customers who would wish to buy in smaller quantities. It employs 9 people, where three operate at the shop in selling. They deal directly with customers, ensuring they get prompt and quality services. 2 are involved in packing drugs for customers. 2 are concerned with the store, where they keep a record of everything being delivered or taken from the store to the shop. They also do the manual work of arranging the store so that the drugs can follow the first in first out policy. In addition, they are responsible for ensuring drugs delivered are in favourable conditions. Another employee manages the cash flow. The main responsibilities involve signing for all cash flows and ensuring there is no unaccounted outflow of money. The store employees report to the finance manager on the stock that is needed to be added. The manager can then order for more drugs and sign cheques when the store workers approve that the drugs has been delivered in good condition. The other is involved in the overall management and oversees the work done by all the other employees. The manager is involved in all decision making and is directly answerable to shareholders. The core duties include ensuring customers and employees are satisfied, putting strategies to market the chemist and concurrently increase profit and shareholders’ wealth. The chemist makes a sale of $4,000 per day. However, the finance manager feels that the chemist has some unaccounted capital outflow, which is suspected to be brought about by some drugs being sneaked out of the store or some employees not giving out receipts to customers and pocketing the money to themselves leaving it unaccounted. The general manager has also received complaints on some overcharging employees, which has reduced the number of regular customers. Scope statement The project aims to install software in the chemist in the next one month to ease work performed by the workers and proper management (Valtakoski and Mikko 1-12). These are computers and internet accessing devices that will keep a record of all transactions that go on in the chemist. It is also efficient for monitoring stock to know the medicine that needs to be reordered due to its decline in the stock. Drugs are first stored in the store in bulk, and only a small amount is taken to the shop for display. This has been adopted due to the small size of the shop. Therefore, the devices are installed in the store, to record the medicine that is remaining. This would make it effective to register the stock that has been brought and the stock taken to the selling shop. It would also be installed in the shop to enhance selling. It would be used to register the prices of different drugs, producing receipts and analysing the stock that is remaining in the shop. The system will also be extended to the office where the manager controls all the activities. In addition, the project will enable customers pay using their debit and credit cards. Therefore, they do not necessarily have to carry cash on them, like they presently do. Objectives of the project The project will enhance the management of the chemist (Rainer and Casey 452-454). It would be easier monitoring the sales from a single source rather than having to physically go round the shop and store looking for information. It is also updated, implying the information on what the position of the chemist is currently. Information will also be conveniently handled. One would have to have passwords in order to access the system. Each will have access to information that concerns their area. For instance, the store employees will only have access to information on the status of the store. The shop attendants only access information about the quantity of drugs in the store and their prices. They would also know the amount of daily cash sales each makes per day, so that they might give the same to the finance manager for banking. The finance manager would access information on the store, shop, suppliers and creditors. However, the general manager can access all the information the junior employees can have. In addition, they would have information on other issues like contacts with external bodies who would facilitate in the smooth running of the business or be a threat to its operation. In addition, it would be easier for workers to communicate among each other. They would use the internet to connect among themselves. This enhances efficiency in their work, since they save on time and there is instant delivery of information. Time spent serving a customer would be reduced due to the effectiveness, resulting into improved customer satisfaction. It will reduce the number of workers have. There are many workers, some of whom perform the work the technical devices installment will perform. These include delivery of information and regular manual calculation of the store. In addition, the time taken by workers in executing their duties will reduce significantly. This project needs negligible amount to maintain. Apart from the purchase and installation of hardware and software devices, the project will not have any significant recurring amount. Therefore, the chemist can comfortably work with the system and a fewer number of employees than it currently does (Bart 98-101). It also has an objective to reduce theft in the chemist. Some employees have been suspected to have been leaking drugs from the store. This has brought some decrease in capital, hence large losses. However, the installation will ensure that there are no loopholes which the workers would take advantage of and sneak out medicine. This is because drugs will be monitored from the time they are delivered into the stores, taken to the shop, and finally sold to customers. Customers will also not be overcharged on a drug since this will be registered in the system. Therefore, they will be contented in the price, promoting relationship purchase. Additionally, it has an objective to provide links to other parts between itself and the market (Jakupovic et al. 37-40). It will use the system to update on the drugs it has in store. In addition, customers can enquire about anything. This includes the drugs they should take, the prices, and delivery information. Furthermore, customers can order and pay for drugs which the chemist can deliver later. Therefore, the system will be of gain to customers and business itself. Work breakdown structure The project can be hierarchically broken down into various works to be performed. These can be divided into three levels. The work packages at the bottom can be analysed as to the precise nature of work, cost they would incur, the scheduled time for the activity, the body or person responsible for work and the resources needed (Indelicato, pp 85). These are further discussed in the preliminary schedule and the budget summary. The work breakdown structure can be demonstrated as below. Preliminary schedule The project involves consulting an Information and Communication Technology firm. These are extremely essential in the project, and the chemist should spend some time analysing the one with the best offer and services. They will help in choosing the best providers for equipment and internet. This will be outsourced, since starting a department this in the firm will be extremely costly to the chemist. They will help analyse the products with respect to price and efficiency. Furthermore, they would be assigned to install the equipment once it is purchased. The management will then purchase the equipment. These include both the technical devices and furniture to be incorporated. This will be done with the consultant to facilitate the purchase of equipment that will be efficient for the chemist. Both managers will be involved in the purchase. The equipment is then delivered to the premises within two days. Some furniture needs to be fitted in one week time, considering it will be customised to fit in the small space available. The ICT firm can then install the equipment. This would take 10 days, since the work involved would be plenty. There are some renovations that need to be done on the building for the equipment to fit. Installations of cables in all the rooms need to have some improvements. After the equipment installation, some software needs to be installed. These will help access the internet. In addition, the ICT will further be assigned to program software for the chemist. The software will be customised such that it will suit the operations of the chemist. It should be used to share information among the workers without having to disclose secret information outside it. In addition, it should cater for all the ranking mentioned above, where each person has their own level of information that they can access. The installation would be done in a day, as the software would be prepared in advance. The outsourced body then tests the machines and software. This would also be done on the same day. Testing is followed by a one week training of workers. They are shown how to use the system, with emphasis to ensure they are all informed. The project can then start operating, with the ICT firm extending its stay for one week to ensure there are no faults in the system that could lead to downtime. After that, the project is in full operation, and only needs maintenance. Task Start time Duration Predecessor task 1. Consulting ICT bodies Day 0 4 Days N/A 2. Chemist renovation Day 4 3 Days 1 3. Furniture and machine purchase and installation Day 4 10 Days 1 4. Software installation Day 14 1 Day 2,3 5. System testing Day 15 2 Days 4 6. Employee training Day 17 7 Days 5 The table shows the activities in their occurrence under pessimistic conditions. Therefore, this would take some less time than indicated. There are some overlapping activities, taking place at the same time. Furniture and machines are being purchased as the rooms are being renovated. System testing can start on the same day as the installation. This can be shown in a Gantt diagram as below (Wilson 430-437). 0-5 days 5-10 days 10-15 days 15-20 days 20-25 days consultation Renovation Purchase and installation of equipment Software Instal     System testing Employee training Incorporate System Project network diagram Risk management plan However, the project faces some risks. One of them includes data loss in case there was theft or error in the system. This is a major risk since most of relevant would be loss that can lead to drastic losses to the chemist. This can be controlled by having a backup for all the information in the system. This would enable the management to access it in an updated form (Barjis 80-87). In addition, the system faces distortion of information by intruders. There could be hackers into the system, changing some information. Unauthorised access to the system can be counteracted by putting passwords for every worker, so that they would only be the ones to access information in the chemist. Moreover, all activities can be traced to the worker who performed it. Authentication before any update will make it easier to know the person liable for any activity (Limaye 151-153). The system also faces being mishandled by employees. Some would not have learnt how to use them efficiently. This could lead to having some mistakes. These could be of adverse effects on the system and the chemist at large. However, the general manager can ensure that all employees are sufficiently knowledgeable on the system to avoid future mishandle (Perry 138). Additionally, to minimise the risks that would be caused by system errors, Lis Chemist will have the ICT company inspecting the system once in every two months. They would detect errors at early stages and take action against them. Moreover, they would be making necessary updates on the system to suit the customers and chemist at large. Risks can cause irreversible effects when they occur. Therefore, the mentioned actions that would make an efficient plan to manage risk should be implemented into the project (Schubert 30-34). Summary budget The project will use some of the capital the chemist is having. This would be to buy equipment and remunerate for the labour done in installation. The ICT firm needs to be paid for the consultation, installation of devices and training for workers as the services that will be in the project. There are 7 computers, cables, 3 credit card swiping machines and a router are the tangible equipment needed in this project. The current prices are $300 for each computer, $250 for the cable needed, $190 for each swiping machine and $320 for the router. This can be summarized as below. Product Unit(s) of product required Price per unit($) Price per product($) Furniture 5 chairs, 3 tables 50@ chair, 80@ table 640 Computer 7 300 2,100 Cables 250 250 Swiping machine 3 190 570 router 1 320 320 ICT services N/A 500 500 Total 4,380 The project has proved that it can solve the problems facing Lis Chemist. It will be effective in the execution of duties most of the workers perform daily. It is scheduled to take some time before completion. However, it requires minimal maintenance to run indefinitely. It is subject to future changes, in case the management finds a need to advance it. The project is implemented at a cost, but this cannot be compared with the many positive advantages it will serve the chemist. There are risks associated with the project. However, there are measures to curb these risks in order that they would not adversely affect the chemist. Therefore, the project is crucial to Lis Chemist, and it is advisable for it to be done. Works Cited Barjis, J. “The importance of business process modeling in software systems design.” Science of Computer Programming, 71.1 (2008): 73-87. Bart, C. Silverlight 4 Business Intelligence Software. S.l.: Apress, 2010. Print. Indelicato, G. “Building a project work breakdown structure: Visualizing objectives, deliverables, activities, and schedules.” Project Management Journal 40.3 (2009): 85. Jakupovic, A., Mile P., and Sanja C. “Application of analytic hierarchy process (AHP) to measure the complexity of the business sector and business software.” Proceedings of the Third C Conference on Computer Science and Software Engineering C3S2E, 10 (2010): 35-42. Limaye, M G. Software Engineering: Principles and Practice. New Delhi: Tata McGraw-Hill Education, 2009. Print. Perry, W. E. Effective Methods for Software Testing. Indianapolis, IN: Wiley, 2006. Print. Rainer, R. K, and Casey G. C. Introduction to Information Systems. Hoboken, N.J: J. Wiley & Sons, 2011. Print. Schubert, P. Software Business. Ed. Björn Regnell, Inge Weerd, & Olga Troyer. Springer Berlin Heidelberg, 2011. Print. Valtakoski, A., and Mikko R. “Diversity of Business Models in Software Industry.” Software Business. Ed. P Tyrväinen, Slinger Jansen, & Michael A Cusumano. Springer-Verlag, 2010. 1-12. Wilson, J M. “Gantt charts: A centenary appreciation.” European Journal of Operational Research, 149.2 (2003): 430-437. Read More