III. Requirements and Resource Allocation

HKALE2007CAPaper2Q1

Lai Hiu Tung

Content

I. Introduction

II. Problem Specification

III. Requirements and resource allocation

IV. Comparison of store managements

V. Analysis

Hardware

Software

VI. Design

Network design of headquarter

Network design of branches

Design of ERD

VII. Implementation

Implementation of network design

Implementation of ERD

VIII. Testing and evaluation

IX. Conclusion and discussion

X. Working Schedule

I)Introduction

Adopting digitalized point of sale system has become a current trend among various kinds of chain stores (such as supermarkets, boutique, convenience stores, restaurants etc.) as it facilitates the operation of the chain stores. To maintain competitiveness, it is necessary for chain store owners to achieve computerized POS. Apart from this, well designed network can prompt data transfer among branches as well as to headquarter.

II)Problem specification

Chris Wong decides to run 10 chain stores selling commodities within Hong Kong. The stores will be operated on 24-hour based. His target customers are local citizens and he assumed each store serves 400 customers per day. As he wants to run the chain stores efficiently, he would like to adopt point of sale system (POS) rather than achieving the traditional operation mode. Each branch is equipped with 3 POS terminals. As for staff, each staff will be allocated to use corresponding POS terminals and paid on hour basis (e.g. $30/hour).

A discounts scheme is going to be organized to offer discounts to customers who become member of the store.

III)Requirements and resource allocation

Since Chris run his business for the first time, he concerns the wants of customers, the attendance of staff and the environment. On the other, he hopes to choose the best products for his customers eliminate the risk of stock loss but maximized his profits and work out a blueprint for successful business. Hence, he would like to

know about the sales volumes of each store seasonally

know about the basic information of customers

know about the customers’ tastes

check the attendance of the staff

when to order the stocks

the budget needed on applying POS

the durability of hardware and software used

the safety problems on hardware and software used

whether the design is environmentally friendly
IV) Analysis: Comparison of store managements

Traditionally, storekeepers need to spend lots of money on inventory control without computerization. In order to manage the stores well, many complex forms for recording the sales condition and the information of regular customers. Sometimes, the expenses on this may exceed the gained profit. The stores will then suffer from a loss.

On a contrary, it is convenient for both businessmen and customers with POS. Barcodes are used to record goods’ cost, price, amount in stock, department etc. The advantages of using POS in different aspects are as follows:

1. Business administration:

Less manpower is needed under computerization, Less mismanagement of staff, Information is transmitted immediately to the headquarters or among chain stores for business strategy. Referencing the records conveniently, credit worthiness can be enhanced. Customers do not need to wait for a long time in queue.

1. Membership administration:

The storekeepers can keep records of regular customers and contact them if there are new stocks available via emails to show your faith so as to increase sales. Also, the storekeepers can offer items, which suit general customers’ needs. For example, students like to have sandwiches as lunch. The store can order sufficient to fulfill those students’ needs.

1. Inventory control:

Accurate counts on both unsold and sold items throughout the year, hence the shopkeepers recognize whether there is a stock loss. Shopkeepers can reorder sufficient amount of items in stock to fulfill customers’ needs as soon as they know about the preferences of different customers. As a result, there will be less likely accumulation of stocks.

1. Financial control:

POS helps calculate the amount of payment in each transaction and sales profit of the stores regularly. The system can help record the discounted prices of corresponding items. Unnecessary miscalculation can be avoided.

In short, POS facilitates running of business be it in business administration, membership administration, inventory control as well as financial control. This enhances expansion of the convenience stores.

V) Analysis

Features of hardware

Input device:

1)Help transfer information of goods by reading bar code and its respective number

2)Input data of customers

Analogy of advantages and disadvantages of input device
Barcode scanner / Keyboard / Credit card reader
 Efficient and convenient for financial and inventory control
 Easy to control and use by touching the barcode label with the scanner
 Avoid human input mistakes / Help insert stock code when something hinders bar code scanners’ functions.
For further control (e.g. the data of customers) / Customers are allowed to use credit card for payment
Not able to read demolished bar codes / Relatively time consuming when inserting data or bar code
Risk of human input mistake when inserting the goods’ codes / In case only a few customers use credit cards for payment, it will be costly to use the reader.

In order to run the store well, barcode scanner and keyboard should be used alternatively, depending on specific situation. However, credit card reader is not necessary in operation regarding to the relatively low priced stocks in the convenience stores. If the credit card readers are installed in each branch, extra cost is needed.

Figure1: Flat top scanner

Input device:

1) Help input the time of working and leaving of stafffor recordingthe attendance of staff

2) Reading the information of the issued membership cards

Analogy of advantages and disadvantages of input device
Bar code slot reader / Keyboard
Convenient for reading bar code
Easier for management of staff (e.g. record the time of attendance)
Accurate data insertion / Can replace the role of bar code slot reader if the slot reader is out of order
 Sometimes, the slot reader cannot read the bar code on card probably, hence records cannot be transfer to the headquarter / The owner maybe cheated by the staff (e.g. Staff may invite other people to work for him by telling him / her the bar code on the card)
Possibilities of inserting false information

Both bar code slot reader and keyboard are necessary to work out the functions. Though bar code slot reader is more convenient for staff and customers, the bar code slot reader may out of order one day. Since then, keyboard can help carrying out the stated functions. Data record can be maintained, hence the operation will be more systematic.

Figure2: Keyboard

Figure3: Magnetic card reader

Output device:

1) Printer: Printing out the receipts as well as hardcopies for both storekeepers and customers

2) Display units: Display data to both staff and customers during transaction

Analogy of advantages and disadvantages of output device
Thermal printer / Dot matrix printer / Ink-jet printer
Easy to print logo on the receipt
Relatively high efficiency
Environmentally friendly as no ink is needed when printing / One printout be the receipt while other be hardcopy of stores
Cost effective / Colorful printout is avaliable
Two printouts are needed if the store want to keep a hardcopy / Noise is emitted when printing / Not necessary to print colorful receipt
Higher cost is involved in using colored ink

The above printers are efficient enough for printing receipts, however, thermal printer is the best choice for the convenience store since it is unnecessary for the shopkeeper to keep a hardcopy. On top of this, it is an environmentally friendly mean to print out receipts for customers when compared with using ink-jet printers. On the other hand, it is the cheapest way for advertising with logo printed on receipts.

Figure4: Thermal printer

Output device:

1) Display the price of each stock

2) Simple messages can be shown with the device

Analogy of advantages and disadvantages of output device
POS LCD display / Monitor
Customer friendly(e.g. Dialogs like ”Thank you for your purchase will be displayed)
Customers can read the price of each stock. Misunderstanding can be avoided
Display panel can adjust best viewing angle for interaction / Extra information can be displayed(e.g. the quantity of specific stock)
Extra money to be spent / Only staff can read out the sum of the payment. Customers can only check data of transaction with receipts. Misunderstanding may arise.

POS LCD display can be installed at each terminal as customers would be pleased to know more about the data of transaction. Besides, the staff may read out the required sum of payment wrongly, customers may feel unsatisfied with the services provided or the store may suffer from loss.

Figure5: POS LCD display

Hardware for network device

1)Forming Local Area Network (LAN) which connects computers located within a limited area

2)Terminal data can transfer to other branches or headquarter

3)Forming Wide Area Network (WAN) which connects computers located within the same city

Analogy of advantages and disadvantages of network device
Hub / Switch / Router
Cheapest form of interconnecting terminals of the store to form a LAN / Cheap for connecting terminals of the store to form a LAN
Switch is multi channeled. Collision can my reduced / Can have firewalls built in.
Perform the functions of switch and hub to form LAN. Also, it can form WAN
Can select the best path for the message flow
 Collision may be arisen easily with single channel /  More expensive than a hub, and are included in a router. /  It is usually most expensive among these three devices

To cope with frequent customers’ flow, hub and router are better choices to set up the network regarding to fewer collisions. Hub can cope with the network of 3 POS terminals while the router allows the branches interact with headquarter. The stores can work smoothly and 0pefficiently. Router can enhance the communication between branches and headquarter.

Cable

Analogy of advantages and disadvantages of network device
Twisted-pair wires / Coaxial cable / Optical fibre
Cheapest transmission medium
Suitable for short distance communication / Relative cheaper than optical fibre
Do not emit much electronic noise / With transmission of light, no electronic noise
For long distance communication
Easily influenced by electronic noise / Cannot perform as well as optical fibre / Most expensive among these choices

Remarks:

New trend

In Hong Kong, using Octopus card is one of the common payment methods. To keep pace with the trend, each terminal of the stores should install an Octopus card reader to suit customers’ need. Regarding to customers’ preference, they usually choose to use Octopus card to pay for the sake of convenience. Hence, Chris should follow the trend to fulfill customers’ wants. Eventually, Chris can gain reasonable profits with the support of customers.

Necessary hardware

Cash drawer is indispensable for keeping the coins and notes. Generally, it is made of metal. As a result, it enhances high security and durability for storing the money. Note that the cash drawer should be with several compartments to store different valued notes and coins.

Thermal receipt paper or dot matrix receipt paper should be taken into account for printing receipts and hardcopies. The choice of receipt paper depends on the type of printer we choose.

Features of software

1)POS software

Package set software is designed to suit normal users’ wants

Real-time arrangement of amount of stock can prevent stock shortage

Safe time cost to check sales records whenever necessary

List out daily sales records and cash flow for better financial control

Accuracy and efficiency of operation is enhanced

Account System is usually included, sales reports can be generated without additional charge.

There are lots of advantages when using the POS system. Database management can be used instead to construct tables with information of staff, customers, supplier, stock flow etc. In another saying, database management is more flexible. It can suit the owner’s special requirement.

Actually, Chris can choose packaged POS software as it is cheaper than the custom-made software. He can buy custom-made POS software if he has any specific requirements that the packaged one cannot fulfill. But the custom-made one is more expensive. So, I suggest Chris use the packaged POS software which can already achieve his wants.

VI) Design

The below designs shows the network of branches and communication between the branches and headquarter respectively. They are inter-connected with hardware compared in the above section, “Analysis”. Both are connected with the Internet for the sake of coping with the membershipadministration and data transmission like inventory control, financial condition etc.

Figure 1

Figure 2

The hardware are connected with using the hub located in each branch. Router, on the other hand, is used to access to the Internet for communication and sharing information like transaction of data.

Following that, figure 3 and 4 show the database used in each branch for data management.

The two figures show the relationship among the staff, stock, supplier, branch as well as member. Branch employs staff; Staff handles order; Order contains stock; Stocks are supplied by suppliers.

Figure 3

Figure 4

VII) Implementation

Implementation of network design

As mentioned before, there are 10 branches in total with each branch having 3 POS terminals, each connected with a keyboard, a barcode scanner, a thermal printer and an octopus reader. The POS terminals in one branch are linked with hub for fetching data to other branches and headquarter. As there are 10 branches, arouterwill be used for communication within the Internet and among branches. The router is security basis to safeguard the data fetching from the branches to headquarter or inter-communication of branches.

Bar code scanner facilitates the operation of store by reading the bar code labels on stock in transaction. Keyboard, on the other, helps the staff to insert the barcode in case the barcode scanner is temporarily out of order. Furthermore, the thermal printer is used for printing the receipt for customers for reference and checking while the octopus reader offers a new mean of payment. This indeed helps the stores to keep pace with the new trend of payment whereas customers can take advantage of the octopus card by keeping fewer coins and this reduces the risk of mismanagement of staff as they do not have to give changes to the customers in transactions.

On the other hand, the headquarter contains a SQL server which adds additional syntax for use in stored procedures and affects the syntax of transaction support with the relational database management system (RDBMS) for storing all daily branch operation information. The SQL commands help the headquarter to obtain data it wishes to check. For instance, the salary for each staff can be calculated with SQL functions with working time and leaving time of each staff.

On top of this, a web server which accepts HTTP requests from the network as well as provide an HTTP response to the requester and designs homepage for the convenience stores to interact with more customers. The customers can browse the most update information of the stores from the website. Besides, firewall should be installed to separate private network from public network for the sake of security, especially avoid personal information of customers should be well-protected, otherwise the business data or customers’ data maybe stolen by hackers for crime. Beside, a backup server should be installed to hold update information of both web server and SQL server so that it can take over the services when needed.

Accompanying with 3 personal computers to cope with the data like financial condition of each branch, the performance of staff, information of customers etc. If Chris, the boss, wants to know about the operation condition of one branch, he can order a staff to print out the data via laser printer. Advantages of laser printers over inkjet printers include lower cost per page, and faster printing speed, since the entire page is imaged at one time, while an inkjet typically prints a series of narrow strips. Though the laser printer occupies much space and is much expensive, the headquarter is able to support this. The above hardware will be linked to a router, so the best path for communication will be chosen.

Sometimes, the samples of goods to be sold can be shown by browsing the website or contact with suppliers through emails. Since then, an email server is to let the headquarter communicate with both supplier and customers via the Internet. Furthermore, router forwards data packets across an internetwork toward their destinations. It chooses the best path for the communications of various devices simultaneously. As a whole, with the help of above hardware, the stores and the headquarter can administrate the business professionally.

Implementation of ERD

By converting the ERD into schema:

Staff (staff_id, staff_tel, staff_address, staff_name, sex)

Branch (branch_id, b_phone, staff_id, b_address)

Supplier (supplier_id, branch_id, s_phone)