Design And Implementation Of An Automated Inventory Control System For A Manufacturing Organisation

Computer Science Project Material with Source Code Included

Abstract

This research work is concise and generally summarizes the activities duly carried out in the design and implementation of an automated inventory control system for a manufacturing organization. The system is designed to efficiently handle the movement and tracking of goods through the replacement of human workers by technology. The manual method or intervention is labour intensive, costly, and error prone and cannot ensure the inventory remains up-to-date due to oversight and internal shrinkage. With the proposed new system, inventory can be updated in real time without product movement, scanning, or human involvement. The automated system allows inventory status to be determined and shipping and receiving documents to be generated automatically triggering automatic orders for products that are low in inventory. The study outlines the main concepts of the analysis and design methodology of the proposed system, compares it to the existing and goes further to explain the design and implementation of the system using Visual Basic 6.0 for the database. The fact finding techniques employed is interview, observation, online and library research.

Table of Content

Title page
Approval Page
Certification Page
Dedication
Acknowledgement
Abstract
Table of Contents
List of Figures
List of Tables

Chapter One

1.0 Introduction

1.1 Background of the Study
1.2 Statement of the Problem
1.3 Purpose of the Study
1.4 Significance of the Study
1.5 Objectives of the Study
1.6 Scope of the Study
1.7 Limitations of the Study
1.8 Definition of Basic Concepts

Chapter Two

2.0 Literature Review

2.1 Comprehensive Overview
2.1.1 Purpose
2.2 Types of Inventory Control Systems
2.2.1 Four types of inventory control systems
2.2.1.1 Manual Inventory Management System
2.2.1.2 Barcode Technology
2.2.1.3 Radio Frequency Identification (RFID)
2.2.1.4 Warehouse Management System
2.3 How Inventory Control Systems Really Work
2.4 What Industries Use Inventory Control Systems
2.4.1 Application of Inventory Control Systems
2.4.2 Importance of Inventory Control Systems
2.5 Warehouse Management Systems
2.5.1 Warehouse Management Rules Engine
2.5.1.1 Rules Workbench
2.5.1.2 Warehouse Management System Strategy
2.5.2 Importance of Warehouse Management Systems
2.5.3 Inventory Control Systems vs. Warehouse Mgt Systems
2.6 Automated Inventory Control System Software

Chapter Three

3.0 System Analysis and Design

3.1 Methodology
3.2 Data Collection
3.3 Analysis of the Existing System
3.4 Limitation of the Existing System
3.5 System Design
3.6 Data Base Design
3.7 Organizational Structure
3.8 System Flow Chat
3.9 Top down Design Diagram

Chapter Four

4.0 Implementation, Testing and Packaging

4.1 Choice of Development Tools
4.2 System Requirements
4.2.1 Software Requirements
4.2.2 Hardware Requirements
4.3 Implementation
4.3.6 Implementation of the Login Form
4.3.7 Implementation of the Main menu form
4.3.8 Implementation of the Receive Supply Form
4.3.9 Implementation of Sales Form
4.4 Implementation of Supplier Record Form
4.4.1 Implementation
4.5 Testing
4.5.1 Unit Test
4.5.2 System Test
4.6 Packaging (Integration)

Chapter Five

5.0 Summary, Limitations, Recommendations, BEME & Conclusion

5.1 Summary
5.2 Limitation
5.3 Recommendation
5.4 Bill of Engineering Measurement & Evaluation (BEME)
5.5 Conclusion
References
Appendix 1
Source Code
Appendix 1 Supply Form
Appendix 2 Sales Invoice
Appendix 3 Supplier Record
Appendix 4 Customer Record

List of Figures

Fig 3.7 Organizational Structure
Fig 3.8 System Flowchart
Fig 3.9 Top down Design Diagram
Fig 4.3.1 Implementation of Program Design Process
Fig 4.3.2 Data Base Entry and Search Engine
Fig 4.3.3 Main Menu Transaction Process (Receive supply)
Fig 4.3.4 Main Menu Transaction Process (Sales form)
Fig 4.3.5 Main Menu Transaction & Exit (sales form)
Fig 4.3.6 Splash Screen; the Login Screen
Fig 4.3.7 Main menu form
Fig 4.3.8 Receive supply form
Fig 4.3.9 Sales form
Fig 4.4 Supplier record form
Fig 4.4.1 Edit form
Fig 4.5 System Testing Process

List of Tables

3.6 Data base; login table
3.6.1 Transaction table; supply form
3.6.2 Sales Table
3.6.3 Customers Table
5.1 Bill Of Engineering Measurement & Evaluation (BEME)

Chapter One

1.0 Introduction

An inventory control system contains a list of orders to be filled and then prompts workers to pick the necessary items, and provides them with packaging and shipping information. Inventory control may be used to automate sales order fulfilment process and also manage in and outward material of hardware. Automation is the replacement of human workers by technology. For optimal sales and inventory management process, robust functionality is needed for managing logistics facilities. Warehouse management functions for inventory control cover internal warehouse movements and storage and its support helps in the recording and tracking of materials on basis of both quantity and value.

This application takes care of all supply orders reducing cost for warehousing, transportation while improving customer service. It significantly improves inventory turns, optimizes flow of goods. It also improves cash flow, visibility and decision making providing efficient execution of tasks using this fast and reliable computerised method

1.1 Background of the Study

The Nigerian Breweries PLC was established in the year 1946. It aims at providing satisfaction and nourishment to the Nigerian population through the distribution of drinks like beer, coca-cola, fanta, sprite etc. It is second to none and for this reason, the demand is high and the company responds to the increasing demand by stabilizing supply to strike a balance.

Justifiably, the company has the problem of keeping adequate record of goods transfer and since it is done manually, associated problems of insecurity, high cost of operation and delay in supply arise. Data processing in Nigerian Breweries PLC is presently carried out using people, pens, and paper to control stock and inventory.

The design and development of an automated inventory control system for the Nigerian Breweries PLC will no doubt bring immeasurable relief from the problems associated with the manual system.

1.2 Statement of the Problem

The Nigerian Breweries PLC is to an extent manually operated and reveals a number of problems.

The recording of sales and cash received are done manually on a book that appears rough. Thus, the books are exposed to physical damage, information can be lost and dust particles are accumulated.
The long list of supply orders waiting to be attended to on daily basis.
The control system is time consuming, less accurate and less efficient, and the environment is not user friendly.
Inaccuracies often ensue from human error.

The manual system is quite tedious and can be reduced or eliminated with the introduction of the proposed system.

1.3 Purpose of the Study

The purpose of this study is to improve current operational process in the Nigerian Breweries PLC to its full capacity by developing efficient computer software that can handle inventory in a computerised fashion.

1.4 Significance of the Study

This study is primarily aimed at increasing efficiency in operations, reducing maintenance and running cost, monitoring the supply of goods and its distribution and increase profit in the Nigerian Breweries PLC by introducing an automated inventory control system.

1.5 Objectives of the Study

The main objective of this study is to develop a computerised inventory control management system. Others include;

It provides total asset visibility.
It allows reduced inventory stocking levels giving full inventory history.
It reduces lead time, shelf space, and errors due to damage, fatigue of staff and overall cost of operations.
It facilitates “just in time” deliveries.
It provides full process control for products.
It provides higher level security as the system would be passworded to prevent unauthorised access.
It shortens cross docking time and speeds up sort/pick up rate.
It helps the management plan, monitor, optimize resources and ascertain their financial position at any time.

1.6 Scope of the Study

The scope of this study covers the Nigerian Breweries PLC as a whole, and its customers which include retailers, distributors and the general public.

1.7 Limitations of the Study

This project was constrained by the following factors:

(a) Financial Constraints

Bearing in mind the economic state of the nation, it was found difficult in making both ends meet, because of the exorbitant nature of things nowadays in travelling for the collection of data needed for the project.

(b) Time Constraints

Looking at the interval between the resumption and vacation of the final semester for the project to be completed, the time given seemed to be short for the collection of required information for better work to be done.

(c) Non-Availability of Material

During this project, it was noticed that the required materials needed for the project are not documented. Those that were documented lacked storage facilities where they can be reached.

1.8 Definition of Basic Concepts

Automation:

This is the use of technology or computers to control and process data reducing the need for human intervention.

Database:

This refers to a large store of related data on a computer that a user can access and modify.

Password:

This is a secret code that must be entered into a computer to enable access to its applications. It is made up of numbers, letters, special characters or a combination of any of the above categories.

Inventory Control System:

A list of orders to be filled, and prompts workers to pick the necessary items and provides them with packaging and shipping information.

Computerization:

This is the conversion of a manually operated system to a controlled, organized and automated system.

Research:

A careful study of a subject to discover facts, establish a theory or develop a plan of action based on the facts discovered.

System:

A set of computer components functioning together.

Technology:

The study of techniques of mobilizing resources such as information for accomplishing objectives that benefit man and his environment.

Software:

A computer program or set of instructions that direct a computer to perform processing functions.

Information System:

A collection of procedures, people, instructions and equipment to produce information in a useful form.

Processing:

This is dealing with something according to an established procedure.

Chapter Five

5.0 Summary, Limitations, Recommendations, BEME and Conclusion

5.1 Summary

Inventory proportionality is the goal of demand-driven inventory management. The primary optimal outcome is to have the same number of days’ (or hours’, etc.) worth of inventory on hand across all products so that the time of runout of all products would be simultaneous. In such a case, there is no “excess inventory,” that is, inventory that would be left over of another product when the first product runs out. Excess inventory is suboptimal because the money spent to obtain it could have been utilized better elsewhere, i.e. to the product that just ran out.
The secondary goal of inventory proportionality is inventory minimization. By integrating accurate demand forecasting with inventory management, replenishment inventories can be scheduled to arrive just in time to replenish the product destined to run out first, while at the same time balancing out the inventory supply of all products to make their inventories more proportional, and thereby closer to achieving the primary goal. Accurate demand forecasting also allows the desired inventory proportions to be dynamic by determining expected sales out into the future; this allows for inventory to be in proportion to expected short-term sales or consumption rather than to past averages, a much more accurate and optimal outcome. With this new system, the difficulties encountered with the manual inventory control system are overcome. The automated inventory control system reduces the workload of the staff, saves time and increases efficiency. The records of the company are safe and secure, distribution process is well managed, errors are minimized, and reports generated for management are accurate thereby increasing the profit margin.

5.2 Limitation

In this project, it is only restricted to the stock department of Nigeria bottling company Enugu depot. There are some limitations they encountered in the updating of some finished product supply into store house and are delivered to the customer who depends on demand and supply as a method of stock control the recorder stock level and economics order quantity.

Also, the administrative department orders materials for the production of the required product these materials could be gotten through local purchasing order. In addition, the project cannot run on its own without human involvement.

5.3 Recommendation

Having carefully examined the usefulness of computer in eliminating most of the errors and hindrances that ensue from paper work, I recommend this automated inventory control system to Nigerian Breweries PLC, 9th mile corner, Enugu in order to enable them produce an efficient inventory management and likewise reduce the complexity of manual work.

Research and development being continuous processes; is the same in computer and software development. This system will be useful since it is computerized and will promote effective, efficient and improve service delivery thereby promoting profit oriented manufacturing. The employment of computer personnel for an effective maintenance of the system will enhance a maximum output of this package and the use of computer in inventory system.

Adopting this system, the following should be taken into consideration, training of staff, security measures, and the provision of dependable real time processing system for speedy responses.

Finally, the project work is likewise recommended to different sections in an organization and every other manufacturing organization that still carry out their operation manually because automated inventory control system handles the problem of time constraints and errors that arises when jobs are carried out manually.

5.4 Bill of Engineering Measurement and Evaluation (BEME)

The total expenses made at the cause of the design and implementation of this new software is analysed as follows:

TABLE 5.1: BEME TABLE

Item	Quantity	Unit price	Total amount (Naira)
VB software	1	N5,500	N5,500
Avast antivirus	1	N5000	N5000
Designing of the new software	1	N15,000	N15,000
Internet browsing	12	N12,000	N12,000
Phone calls	–	N4500	N4500
Transportation	–	N5000	N5000
Printing	–	N10,000	N10,000
Total	–	N61,500	N61,500

5.5 Conclusion

Having carried out the required study of the design and implementation of an automated inventory control system for Nigerian Breweries, the organisation can now comfortably eliminate the manual method which have been proved inefficient, tedious, time consuming and prone to errors

The new automated system is the major target of this project. So the computerization activity depends on the maturity and honesty of the staff. Implementing the new system enables the worker to be well trained and creates new jobs for them.

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