Systems Analysis Hnc Assignment 2005

SYSTEMS ANALYSIS

INTRODUCTION

ROD WHITE

2005

Rod White

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Scenario The text of the attached case study describes, in outline, the main activities of the BIFHE organisation. At present the systems that support these activities are all paper based, i.e. they rely on all the data being held on paper files. The Senior Management Team of BIFHE have now realised that the operation and development of the organisation is being severely restricted by the limitations on their ability to use and maintain the data files. The frequency and severity of the errors found is increasing alarmingly. They have decide that the time is right to consider the complete overhaul of their systems to enable them to operate more efficiently and effectively and to allow them to expand their products and services. You have been engaged to lead a small team of analysts, supported by representatives from within the organisation, to undertake a ‘root and branch’ investigation of the existing systems, and to come up with a proposal that will lead to the design and implementation of a new system to meet the declared aims and objectives. Tasks. Use the information provided to respond to the tasks listed below. You can make any valid assumption where the level of detail provided is considered to be insufficient. In this event, you must state clearly what assumption you have made and why you have made it.

Task1. (Outcomes 1.1/1.2) To undertake the task outlined above, there are certain methodologies that could be used. These include the Systems Development Life Cycle or ‘Waterfall’ method and the method know as Rapid Applications Development (incorporating Prototyping). 1.1 Briefly describe each of these methodologies, indicating the main stages involved along with details of the function and purpose of each stage. 1.2 In light of your appraisal of these methodologies, select the one you consider to be most appropriate for use with the BIFHE project, clearly indicating the reasons for your choice.

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Task 2. (Outcomes 2.1/2.3) As part of your investigation for BIFHE, you will be required to use certain fact finding techniques. It will also be necessary to record your findings in a way that will facilitate communications and future analysis. This can be considered as an essential part of the documentation process. 2.1 Give details of your fact-finding strategy to show which techniques you intend to use, the people with whom they will be used, and the type of information you would expect to obtain. 2.2 Briefly describe the ways in which the data will be recorded and presented.

Task 3. (Outcome 2.2) When all the data has been gathered and all of the processes have been described, it will be necessary to clearly identify the system requirements for the replacement of the existing paper-based system. 3.1 Based upon your findings from your investigation into BIFHE, prepare a Problem Definition and a Requirements Catalogue to be used as the starting point for the design and implementation of a new system.

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Contents Page Title

Task 1.1

Describe SDLC and RAD

1.1.1

SDLC

1.1.2

RAD

1.2

Select Appropriate methodology

2.1

Fact finding Strategies

2.1.1

Document research

2.1.2

Interviews

2.1.3

Conclusion

2.2 3.1

Describe ways in which data is recorded and presented Problem definition and requirements

3.1.1

Problem definition

3.1.1.1

Purpose

3.1.1.2

Background

3.1.1.3

Problem Area

3.1.1.4

Scope of the problem

3.1.2

System Objectives

3.1.3 3.1.3.1

Functional and Non-functional requirements (constraints) Functional requirements

3.1.3.2

Non Functional requirements

3.1.4

Conclusion

4.0

Appendix

4.1

Glossary

4.2

Bibliography

4.2.1

Books

4.2.2

Websites

4.2.3

Magazines Case Study

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Introduction The Chief Executive Officer of Belfast Independent Food & Household Enterprises has asked myself and a small team of computer analysts to help his company to become more efficient by the introduction of a computer system. The following is a report that we have created to be presented to him on a date in the near future.

Task 1.1 Describe SDLC and RAD. Briefly describe each of these methodologies, indicating the main stages involved along with details of the function and purpose of each stage.

1.1.1 Systems Development Life Cycle In order to ensure best practice in the development process standardised models have been devised. These ensure that the planning and management of the project are completed to a set time scale. The process is divided into a number of phases, these help to channel the resources available. It is very important that the process is planned because some projects can be extremely costly and time consuming. In order to do this there are two main models that can be considered. They are referred to as the Systems Development Lifecycle Model (Waterfall Model) and the Rapid Applications Development model. A useful linear illustration of SDLC appears below:

( from: Skidmore, 1997) This process is divided into two main sections – Systems Analysis and Systems Design. Note that each phase leads on to the next stage. There is a clear beginning and a clear end to the process. This approach favours large projects where the process is relatively complex and a large amount of resources are available. Large projects need to be planned precisely because the costs involved can be extremely high.

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Whilst SDLC is a rigorous method that will ultimately produce the ‘best’ some organisations are willing to compromise the ‘best’ solution for a solution that is ‘good enough’ and comes with a moderate price. The approach that these organisations may favour is known as Rapid Applications Development and is explained next. This approach favours a small organisation and may be preferred by BIFHE.

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1.1.2 Rapid Applications Development (RAD) RAD uses a different approach in that it uses a series of prototypes. In the same way that an engineer may complete a prototype, test it, review and change it a system is proposed that may be incomplete but that works. This system is then refined in the light of comments and difficulties to produce a new prototype. After a number of attempts involving the process outlined below a final solution that is acceptable is produced. It is important that a powerful and flexible software solution is used because during this process the prototype may need to be extended / enhanced / changed at each stage of the process. The Prototyping process is difficult to plan and budget due to the lack of distinct phases as seen in SDLC. However RAD favours a small development team and a small organisation, In practice it is able to produce a solution quicker than SDLC. It must also be noted that RAD is not suitable for large organisations because in a large system areas may be overlooked and inappropriate solutions may be created that reduce efficiency. Preliminary investigation

Design

Build Modify Implement

Evaluate

Accept

The advantages of this model are that it accelerates the speed of the process to enable the users to see an end result quicker. This approach favours small / medium projects and the short development time means that technology selected does not become outof-date or obsolete by the time the project is finished.

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Task 1.2 In light of your appraisal of these methodologies, select the one you consider to be most appropriate for use with the BIFHE project, clearly indicating the reasons for your choice. When considering the BIFHE organisation we have to be aware of both the current business environment and of the reaction by employees. Although the CEO is keen to change there is the general attitude that ‘this is the way it has been and the way it should continue’. This conservative attitude among the workforce is strengthened when fears rise that there might be changes in the employees due to the introduction of a computer system. In order to expand and compete in the current business environment greater efficiency and functionality is needed. However the CEO has taken the wise decision of analysing the organisation in order to make sure that the system installed will suit the organisation. The computer hardware could be quite expensive to purchase and install, it should be viewed as an investment and needs to be carefully planned. As discussed in task 1.1 both approaches could be used and in this section I intend to discuss and consider which approach is best suited. If we consider the main areas of work in BIFHE, they are divided into three – purchasing, sales and accounting. If we estimate the size of the workforce to be approximately 35, then you could assume that there are between 5 to 10 employees in each section. With this small amount and considering the difficulties that might be involved the schedule of introducing the computer system is essential. With SDLC there is a long development period perhaps several years - if a new system was suddenly installed and the changes announced it would create tension and lead to low morale. Therefore it would be ideal if a pilot system could be introduced in each of the three areas. Staff could be trained and could give feedback at the same time. In this way they would feel involved and motivated to use the computer system and help the analysts to develop a system that is truly beneficial. A pilot scheme would also help the analysts to assess possible problems and difficult areas. This scheme could be applied using the principles of RAD and a system could be developed relatively quickly. Both the speed of development and the fact that it would be a gradual introduction would ease possible difficulties with staff and could help to persuade those who are sceptical that a computer system would be more useful.

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A brief look at the sales procedures might suggest that they are overly cumbersome and repetitive. For example one change that could be experimented with could be changing the membership card to something similar to a store / credit card. Under the current system customer apply for a membership card, they then use this card to prove they are member and then pay for the goods at the till. Each month the customer then receives a statement telling them what they have bought. Why not send them a monthly invoice? The card could simply be swiped, signed for and then the goods are paid by invoice. To assess the scale of change involved and the associated problems and benefits a pilot scheme would be highly useful. A prototype could be developed for a small number of customers. At first impression the time saved on the tills would be highly beneficial and it could enable further growth. The advantage of RAD is that it cuts down on the costs that are normally associated with the maintenance stage of SDLC. To quote from the Orion web site: “Typically 70% of a system’s lifetime budget is expended in this stage. It has been estimated that a problem identified and fixed during this phase costs 100 times as much as a problem fixed during the analysis phase.”1 Due to the lack of user feedback during SDLC and considering that if a problem is missed during the analysis stage of SDLC it can be said to magnify like ‘Chinese whispers’ the RAD approach appears to be more suitable. The organisation could probably not afford the cost of this maintenance, it would also damage staff morale if a new system that they are not totally satisfied with develops problems. One problem that has been common with RAD approaches is that they are difficult to plan and can sometimes grow out of control as the user expectations become too high. The project would have to be researched and planned before the pilot scheme is introduced and a rigorous set of controls introduced to deal with targets that are not met. A new type of RAD known as the Dynamic Systems Development Method acknowledges the lack of planning and introduces ‘timeboxes’ for the prototyping method. This could be useful to prevent the team going over their budget.

1. http://orion.kent.edu/steinberg/sys2.htm#lc

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Task 2.1 Give details of your fact-finding strategy to show which techniques you intend to use, the people with whom they will be used, and the type of information you would expect to obtain. The purpose of the fact-finding stage in the project is to help the analyst to gain an indepth picture of the current system and to find out what is required for the new system. This is complex because at each level of management there may be different perceptions of how the system is organised and how efficiently it is seen to be running. A wide number of opinions and facts need to be studied and analysed before the new system can be designed. In order to find this information a range of strategies are available to the analyst. Due to the comparative medium size of the organisation it is thought that interviews, document collection and a simple survey can be used to achieve this goal. Considering the concerns over the negative attitude to change by the staff it is thought that immediate direct contact and observation will be beneficial. It is essential that at all times co-operation and a good working relationship is initiated. Although the questions may be complex at no time should it be suggested that we are trying to criticise or denigrate the current system. Contact is sought with all levels of staff and the benefits of change should be stressed at all times. Initially a meeting will be sought with the CEO and the Senior Management Team. The meeting will have a formal agenda but it is hoped that this can work to help bond relationships. (The agenda can be seen on the following page.) This will give the analyst the opportunity to gain an insight into the business ethos and environment of the organisation. Notes will be taken considering the current system, the overall structure and general background of the organisation. Permission will be sought to collect documents for research and to interview other members of staff. Advice will be sought concerning individuals that may be the best to talk to and general permission will be gained to visit the organisation, to observe and to carry out a relatively simple and quick survey among staff members. It is important that a follow-up meeting is organised to confirm the information gathered in the first meeting and to report on progress. After the initial meeting the documents that we requested will be collected and studied. Further individual interviews will be organised with each head of department and a strategy for the whole organisation will be discussed. The individual interviews with each manager will look specifically at their department and will try to cover aspects that were not covered at the initial meeting. Information regarding staff members and shift times will be sought to enable the team to develop a schedule for the next stage of the process.

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Introductory meeting between BIFHE and the System Analysis Team Date:

Sunday 28 November 2004

Venue: Slemish Suite, Ramada Hotel, Shaws Bridge, Belfast Time: 3.00 pm refreshments will be provided. Invitations to: CEO Purchasing Manager Sales Manager Accounting Manager Analyst Project Manager Team member 1 Team member 2

AGENDA 1. Introductions 2. The current system - Background - Current performance - Strengths and weaknesses 3. The proposed solution - Goals - Ideas 4. Action required -

Organisation chart Interviews Document collection Observation and survey

5. Conclusions 6. AOB

2.1.1 Document Research

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During the initial meeting permission was sought to gather as much documentary evidence as possible regarding the current system. The following will be either collected or a time will be arranged to inspect the following: Company policies and procedures Business plan / Mission statement Any previous System Analysis reports / studies Job descriptions Organisation chart Sales / Purchase / Accounts forms Sample from customer database Samples from complaint forms Accounting records / reports Inter-office reports and memoranda The study of these documents will enable us to gain an insight into how the organisation works. However this can only give a partial insight and will help when it comes to the next stage of carrying out interviews / surveys and observation.

2.1.2 Interviews The next stage will be to carry out short interviews with the manager of each department. Information will be sought as to the procedures of each department and permission will be asked to directly contact staff. Shift times and periods of low productivity will be asked for to find the best time to carry out the survey of staff. It is hoped that whilst surveying the staff the business environment and procedures can be observed. A relatively simple survey has been developed that is quick with one open ended question to allow them to comment as desired. The survey is outlined below but may be modified if initial results are unproductive. BIFHE Survey questions 1. How well do you think the procedures in your office / environment work? Answer 1 Very Well 5 Not very well 2. How often do you experience problems with the current procedures? Answer 1 Frequently 5 Only occasionally 3 How do you rate the efficiency of your working environment in comparison to other businesses? Answer 1 Very Well 5 Not very well 4. Do you think the current procedures could be improved? How?

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2.1.3 Conclusion This process of fact-finding is very important, it will help to enable us to get a complete picture of the current organisation. After this process is completed we will review the information to see if anything further can be gained. A second meeting will be scheduled with the CEO and the Senior Management Team to give feedback and to confirm the information that was gained during the interviews. The feedback will be useful and it is hoped that the benefits will enthuse and motivate the organisation to co-operate and support the work of the analysis team.

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Task 2.2 Briefly describe the way data will be recorded and presented The data that been collected during the fact finding stage now has to be recorded and presented both to the Senior Management Team of BIFHE and to the analysis team. The best way to do this is to use a standard method of recording data and to present it in the form of a diagram. A diagram has the ability to be straightforward for BIFHE to understand and to be useful for the analysts to get an idea of the overall system. The organisation needs to be analysed as a whole. It is important that we get feedback from BIFHE at this stage, the diagram may not be complete and with feedback any gaps or misunderstandings can be cleared up effectively. In order to get a detailed view of the organisation a set of standards has been set up. These standards are used as a mechanism of control. They help to make sure that the stage in the project is managed effectively. They outline the types of information needed and the level of detail required. This means that resources and time are managed effectively. The standard process also enables the data to be stored effectively. It is important that in the future data can be easily located and produced. To aid this process a computer package is normally used. Data is stored in a data dictionary. A data dictionary may be created manually but a computer package ensures that data can be edited, retrieved or restored easily. The goal of this stage is to enable the analysts to identify the current functions, the problems and the requirements of the new system for BIFHE. Skidmore describes a data dictionary as follows: “ A data dictionary is simply a record of data about data.”1 The software of a data dictionary will construct a Data Flow Diagram. The behaviour and structure of the data is stored in such a way that the organisation can be analysed efficiently. Within the data dictionary there are four main components of the data that are recorded: •

1

Data Flow. This is data on the move. Information that is being transferred within or from the organisation out or in. For example when a customer fills out an application form for membership and this is passed on to the Accounts department.

Skidmore, 1998, P. 128

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•

Data Store. This is where data is at rest. Information is held here in order for it to be retrieved or edited at a later date. At present data in BIFHE is held in a manual store such as the filing system of membership information.

•

Process. A process is the manipulation of data within the organisation. This enables data to be used by the organisation. For example, the marketing department takes address details from the membership list in order to create a mailing list to distribute the monthly discount newsletter.

•

External Entity. This is the source or destination of data outside the organisation. For example this would be the customers or the suppliers of the organisation.

The diagram that is constructed is hierarchical. That means it is constructed in layers. It starts with a context diagram that places the organisation within the business environment. This diagram explains the relationships of the organisation the external entities but does not show any of the processes that are going on inside the organisation. An example of what the context diagram may be like is shown below:

Membership Application CUSTOMERS

Rod White

Monthly Statement

Invoice SUPPLIERS

BIFHE Payment

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Task 3.1 Prepare a Problem Definition and a Requirements Catalogue to be used as the starting point for the design and implementation of a new system. Based on the results of the fact finding study and on the development of a Data Flow Diagram the analysis team has produced the following report. The report introduces the current system and the current problems. It follows on with a section outlining user functional requirements and non-functional requirements (constraints) to enable us to start the implementation of the new system. This document will form the basis for the design of the new system.

3.1.1 Problem definition (Introduction) 3.1.1.1 Purpose The purpose of this project is to aid the Senior Management Team (SMT) of BIFHE with the growth and development of their company. Over the past few years it has been identified that the manual system they use has been experiencing a variety of problems. In the current business environment there is a high level of competitiveness and this has meant that they are limited in their business performance. In order to improve their performance they have agreed that the introduction of a computerised system is essential. They have asked myself and a small team of analysts to be responsible for recommending a computer system that will enable them to be more efficient and on that will help them to develop their business. In order to do this we have initiated a study of the organisation. We have collected information regarding the current system and this document represents our thinking on the current system, problems associated with it and the requirements for a new system. In order to avoid misunderstandings this document may be re-drafted a number of times. We must work together on this issue and concentrate our energy on the same issues.

3.1.1.2 Background A number of different problems have been raised and in the following section they will discussed. In order to understand a brief introduction is required.

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Technology and business have been progressing extremely rapidly in the last few years. The 21st century is a world full of mobile phones, laptops and high powered computers. The customers of BIFHE bring new expectations to their business relationships. Many are trading not only locally but nationally, some even have international links. They have experienced high levels of customer service and when they come to the BIFHE warehouse they are expecting the same. The following problems are not precise, they are only symptoms. They indicate that BIFHE needs to utilise the technology that is available to them. The problems show that the business methods of 10 or 15 years ago cannot cope in this modern age:

o “We are overstretched.” o “Procedures take too long” o “We are so busy that customers don’t want to come back.” o “When an error occurs before it is too late.”

we

do

not

discover

it

o “I am not able to control the flow of stock.” o “The customer expects too much from us.” o “The morale of staff is too low.” o “There is a high turnover of staff in critical areas.” o “Each problem is more severe than the last.”

As leader of the analysis team we understand these problems, we have seen them before. It is our belief that these problems are not to be viewed as stumbling blocks or as brick walls but as opportunities for growth. According to Kendall and Kendall: “A problem is a situation where goals have never been met.” In this project we want you to identify and achieve your goals. In the following section we will try to define the cause of the problems.

3.1.1.3 Problem Area The problem is the manual system of organising the business. The users of the system find themselves unable to maintain it and use it in the way it was originally intended.

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A computerised system is not only faster and more efficient, it can identify and work to minimise the effects of user error. It can also enable better communication between departments. This means that problems can be shared and dealt with more effectively.

3.1.1.4 Scope of the problem The problem is associated with all who have to use the manual system. BIFHE is a medium sized company, all the employees depend on the manual system. In order to introduce the new system effectively they will have to feel confident to use and rely on the system completely. Therefore the employees will not be trained, there is a limited level of technical ability. We also have to consider that there is a limited budget and a limited time-scale for the project. All these factors have to be taken into account before we try to solve the problems.

3.1.2 System Objectives Two main objectives were given: 1. We want to expand. 2. We want to computerise the company. It is hoped that by working together we can achieve these goals. The analysis team will work directly on a new computer system and this in turn will enable the business to expand without the extra cost of new staff. We are aware of these objectives and we are committed to achieving them. However other factors need to be taken into account that we are not responsible for. Attitudes, beliefs and values held by the employees will need to change when the new computer system is introduced. We have noticed a conservative ‘stubborn’ attitude within the staff. There is a reluctance to change that we believe contributes to the lack of confidence and low morale. The employees also need to be encouraged about the benefits of the progresses of technology. Although the project team does not consider itself religious we are inspired by the thoughts of the 20th century palaeontologist / mystic Teilhard de Chardin who said: “Everything that rises converges.” We hope that as result of our work that BIFHE can become more united, confident and energetic. A computerised system along with these ideals will be the only way for you to achieve your goals. In the next section we will go on to outline the new system that is proposed. Rod White

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3.1.3 Functional and Non-Functional Requirements A list of requirements is the basis for a project. Although not on the same scale the the systems analysis project for Swanick Air Traffic Control went over budget by £180 million. The main reason for this failure was concluded to be: “proceeding with specification”2

system

implementation

without

a

robust

requirements

From this it can clearly be seen that a list of requirements is essential.

3.1.3.1 Functional Requirements •

To build a database to hold details of suppliers.

•

To build a database to hold details of customers.

•

To build a database to hold details of stock.

•

For each aspect of the database to be relationally connected to each other.

•

To computerise the accounts and finance departments to aid duties associated with VAT, other taxes and the production of financial reports.

•

To monitor the flow of stock.

•

To be able to produce high quality publicity material.

•

To increase the number of customer transactions per hour.

•

To improve card security and reduce incidents of fraud / deception.

•

To introduce an electronic system of communication between the departments.

•

The system must be reliable. A 95% reliability agreement is still to be discussed.

3.1.3.2 Non-functional requirements (constraints)
2

The purchasing of hardware has a limited budget

Quoted from the notes by Martina Dooley. Source given as HMSO, 1999.

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The purchasing / development of software has a limited budget.




The SMT have decided that a strict time scale will have to be followed. Deadlines still have to be agreed.




The amount of memory available for the computer system is limited.




Training will need to be provided for employees.




At all times the security of the system must be maintained to a high level.

3.0 Conclusion This is a preliminary document. We are aware that there may be problems with the previous list of requirements. That is why it is essential to get feedback. All these requirements are open for modification at the moment, before the design phase can be started this document needs to be agreed upon and signed. Precise levels of system performance have yet to be agreed. A further meeting is needed to agree on these. The SMT have asked the analysis team to investigate the introduction of a ‘store card’ to replace the current membership card. We agree that this could speed up the number of transaction per hour, however we would like to pilot the idea to find out the optimum performance level. We also feel that the increase in speed would need to be balanced with an increase in the level of card security. The precise details of the introduction of a pilot system in all departments have yet to be agreed. This is the most practical approach and it is felt that the details need to be discussed further. There is a great deal of enthusiasm in the SMT for the new system. We hope that this attitude can be shared with the rest of the employees of BIFHE. We look forward to working with all the staff of BIFHE and with helping the company to grow and to become more successful.

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4.0 Appendix If you have any problems with the report we are always willing to answer questions. The following is a brief glossary and bibliography.

4.1 Glossary Data Dictionary

A data dictionary contains information about the structure and content of all data within the organisation.

DSDM

The Dynamic Systems Development Method is a variation of Rapid Applications Development. It is characterised by timeboxed task cycles and the ability to prioritise requirements

Prototype

A prototype is a model of what is being built. In the same way as engineering the prototype is used to test performance. It allows for modifications and upgrades until the user is satisfied.

RAD

Rapid Applications Development is a technique that allows software applications to be developed quickly. Following the prototyping method the resulting applications may have to compromise speed or efficiency to find a solution quickly.

SDLC

Systems Development Life Cycle is the traditional model of Systems Analysis. It involves a sequence of stages that follow each other. It is also known as the ‘Waterfall model’.

Time boxes

A timebox is a distinct time period to deliver a task in the systems development. Requirements are made in term of priority and some requirements may be dropped to enable the task to be completed on time.

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4.2 Bibliography This is a list of books, websites etc. that you have used.

4.2.1 Books I have used 1. Skidmore, S. ‘Introducing Systems Analysis’ 2ed. Blackwell, 1997 1-85554-231-5 Useful reference for SDLC and Prototyping. 2. Hellingsworth, B., Hall, P., Anderson H. ‘Higher National Computing’ 1ed Newnes 2001 0-7506-5230-6 Useful textbook containing straightforward information on all areas. At times the amount of detail given is not sufficient. 3. Cuénot, Claude, ‘Teilhard de Chardin’ Burns and Oates,1965 Although not essential reading I have found this biography is the most comprehensive in terms of the life and thought of Teilhard de Chardin. 4.2.2 Websites I have used 1. http://orion.kent.edu/steinberg/sys2.htm#lc Useful site for information on the system life cycle. 2. http://en.wikipedia.org/wiki/Main_Page The Wikipedia online encyclopaedia is a useful site to gain background information. It is updated regularly and is helpfully cross referenced. Articles can be found on SSADM, RAD and other topics. 3. http://www.yourdon.com/books/msa2e/ Ed Yourdon’s online version of ‘Modern Structured Analysis’ is a useful and comprehensive reference site. 4. http://www.csm.uwe.ac.uk/~tdrewry/index.html Tony Drewry, Senior Lecturer in the University of West England has created a useful web site concerning systems analysis with a useful section on SLCs. 5.

http://homepages.feis.herts.ac.uk/~1com0031/Problem Definition.pdf

Martina Doolan in the University of Hertfordshire has created several useful presentations concerning Systems Analysis including this presentation on problem

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definition. There do appear to be problems with this web page. All documents can be accessed via the Module Schedule page: http://homepages.feis.herts.ac.uk/~1com0031/ISD1_Schedule.html

4.2.3 Magazines I have used 1. Program Manager May / June 2000 (Vol 29 issue 3) “A total Systems Life Cycle view on reducing cycle time” Brodfuehrer, Brian An in-depth look at the systems analysis of the US Department of Defence Acquisition system focussing on reducing development time. A case study concerning the analysis of a large organisation. 2. PC World June 2004 “Crunch Time” A ‘group test’ of different accounting software packages and helpful advice in choosing the package that is best suited to you.

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Belfast Independent Food & Household Enterprises. ( B.I.F.H.E. ) Introduction. BIFHE is a Wholesale Cash & Carry warehouse situated on the outskirts of Belfast in the Millfield Industrial Estate. It serves the local retail trade with the supply of foodstuffs and other household needs. Its operations are divided into three main areas; Sales / Marketing Warehousing/Purchasing Accounting / Finance. Each of these areas is managed by one of three Department Managers who report directly to the Chief Executive Officer. There are numerous other staff within each of the three departments to undertake the activities to operate and control of the section. The services provided by BIFHE are not available to the general public; only those who have been approved and authorised.

Each authorised customer will have an

account card on which will be encoded their account number and details such as credit limit. To obtain a card a potential customer completes an application form that is then processed by the Accounts / Finance section who will issue a card after making the appropriate checks to establish their credentials and credit worthiness where appropriate. An outline of the main activities within each area of the organisation is given below.

1. Sales/Marketing. 1.1 Sales. Customers visit the warehouse and load their choice of goods on to a trolley and then present these goods along with their card to the checkout operator. The card is scanned to determine that it is still valid. Details of stolen, missing or deleted cards are held on a separate file. Goods can be paid for by cash, cheque (only accepted with a valid bank guarantee card), credit card, or they can be charged to the account. Only the authorised cardholder can charge goods to an account, therefore the checkout operator is required to ask for proof of identity. For credit card transactions in excess of £100, the card company will be contacted to give an approval number. If this is not given, the Rod White

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transaction will be cancelled and the goods returned to the shelves. For cash sales (cash, cheque or credit card), a cash sales docket is prepared. This is a three part document, the top copy is given to the customer as a receipt for goods, the second copy is retained by the checkout operator to be used to reconcile the takings at the end of the day, and the third copy is sent to Warehousing / Purchasing to be used to update the stock file. For credit card transactions, the card will be swiped, the amount entered and the customer will sign the printed docket. The customer retains one copy and the other is kept in the till. The transaction details are automatically transmitted to the card company for payment. For credit sales there is first a check to see if the transaction would cause the account credit limit to be exceeded. In this case the transaction can be rejected or referred to the Deputy Director for approval to over-ride the limit. For valid transactions a credit sales docket is prepared. This is also a three-part document. The customer signs the top copy which is then sent to Accounting / Finance to update the customer account, the second copy is given to the customer and the third copy is sent to the Warehousing / Purchasing department to be used to update the stock file.

1.2 Marketing. The Marketing section prepare publicity material to be sent to customers to advise them of special offers and deals. The Department Manager (Sales / Marketing ), acting in consultation with the other Managers and CEO will review the product range and pricing policy, and plan a publicity campaign. In some cases they will be responding to special promotions arranged by suppliers and manufacturers.

2. Warehousing / Purchasing. 2.1 Warehousing. The main activity within this section is to maintain adequate stock levels of the items on display in the sales hall. From time to time there will be deliveries of goods from suppliers in response to orders received. When goods are delivered, they are checked against the delivery note which will accompany them. When the clerk is satisfied that the goods are of the correct quantity and quality, they will sign the delivery notes which are three part documents. The top copy and bottom copies are returned by the carrier to the supplier who will then raise an invoice based on the original order and goods delivered. The middle copy is retained by the warehouse clerk and Rod White

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subsequently sent to the Accounts section to be reconciled with the invoice from the supplier when it arrives. The stock control clerks update the stock File from the details on the sales and credit dockets. This enables them to identify any stock item whose stock level has fallen below a predetermined minimum level. In this event a requisition is raised and sent to Purchasing who will then create an order for replacement stock from the preferred supplier.

2.2 Purchasing. In response to the requisition sent from Warehousing, the Purchasing section will generate an order from the approved supplier. Details of the preferred suppliers are held on a suppliers file. The order is a two-part document. The top copy is sent to the supplier and the second copy is retained by Purchasing to be collated with the delivery note and invoice. These documents are then sent to Accounts authorising the production of the appropriate payment. From time to time the suppliers file will be updated to allow new suppliers to be added or amendments to be made to existing suppliers. The information will be provided by the buyers who will visit the suppliers to negotiate the contracts for the supply of goods.

3. Accounts / Finance. 3.1 Accounts. In the Accounts section they deal with customer accounts and supplier accounts. When a credit sale is made the details are taken from the credit sales docket and posted to the appropriate customer's account. As and when payments from customers are received they are also posted to the matching account. This process keeps an up to date record of the status of each account. At the end of each month the customers receive a monthly statement which details all transactions, debit and credit, for the previous month. The Accounts section also deals with the payments to suppliers for goods delivered. When an invoice is received from a supplier it is collated with the original order and appropriate delivery note which will have been countersigned by someone in the Warehousing section to indicate that the goods have been delivered. A payment will be generated and the details posted to the suppliers account File. Rod White

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3.2 Finance. The Finance section looks after the financial health of the organisation and deals with payroll, VAT etc. The activities involved are not part of this case study.

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