chapter 1- introduction

7/21/2019 Chapter 1- Introduction

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1.0. Introduction

Since the beginning of the 21st century, shopping centers have

become an essential part of human life in the Philippines as they have

become in the world. Since their emergence, shopping centers in the

Philippines have incessantly developed, and such a steady development

has recently resulted in growing investments rates in the Metro and

provinces, which has a substantial position with regards to socio-economic

concerns. Due to this fact, several concerns are deeply eamined in terms of

socio-economic and physical characteristics of the city, which is suitable for

the establishments of shopping centers. !dding to this point, shopping

centers, which are the big investments for the provinces where they are built

also, a"ect the economic, sociologic, and spatial conditions of their

environments.

#very business has to deal with some form of transactions. $ow a

company decides to manage these transactions can be an important factor

in its success. !s a business grows, its number of transactions usually grows

as well. %areful planning must be done in order to ensure that transaction

management does not become too comple. &ransaction processing system

is a tool that can help growing businesses deal with their increasing number

of transactions.

! transaction processing system '&PS( or transaction server is a software

system, or software)hardware combination, that supports transaction

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Shangri-La Plaza Corporation



processing. *t is a type of computer processing that ta+es place in the

presence of a computer user. *t allows for an immediate response to a user

reuest.

1.1. Background of the Study

&he investments of the uo+ roup in the Philippines comprise four '/(

Shangri-0a hotels and resorts 'Ma+ati Shangri-0a, #dsa Shangri-0a, Shangri-

0as Mactan esort and Spa, %ebu, and Shangri-0as 3oracay esort and Spa(

and Shang Properties, *nc., which is the property development arm of the

group in the Philippines with core businesses in o4ce and retail leasing, and

residential development.

#dsa Shangri-la Manila is a serene city oasis located at one of Manilas

fascinating attractions that is very much noted in history. ewarded with the

view of a stunning sunset, the hotels lush tropical garden covers a large part

of the hotel property with tranuil greenery. &he Shangri-la story started in

Singapore as the 5rst delue hotel in 1671. Shangri-la Pla8a is one of the

Philippines 9hite Pages hotels that carry international brands such as

contemporary, art deco theme, classic structure of shops, and impeccably

clean ambiance. Shangri-la Pla8a never fails to attract anyone who desire to

shop and dine serenely in tranuil ambiance. &he peace and uiet blends

well with the diverse shops and restaurants designs. *nspired by the 0ost

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$ori8on novel of :ames $ilton in 16;;, the land features and design of the

hotel encapsulates the type of service and serenity this hotel has achieved

and made its name worldwide. &oday, it is regarded as one of the Philippines

9hite Pages 5nest hotel ownership and management corporations.

&he shops and malls within Shangrila Pla8a provide high-end products

and variety of sophisticated choices such as $ugo 3oss, Mar+s < Spencer,

!nne line, or amiseta. =ou can also visit the malls of %ole $aan to >ara,

%rossing, and ustans, which o"ers more fashion and clothing choices.

$ome decor shops from native or locally manufactured antiues inspire the

display of home accents and furniture department. *f you are loo+ing to

change the loo+ of your +itchen, you may 5nd several specialty shops

dealing with di"erent modern to classic designs and types of +itchenware

and decorations. Some shops o"er automobile accessories and home theatre

systems.

&he process of purchasing starts with any department of Shangri-0a Pla8a

corporation. &he sta"s or manager of any department starts to 5ll out the form

named Purchase euest. *t is then approved 5rst by the manager of the

department if the sta" is the one who reuested for it. 3ut if it?s the manager who

made the purchase reuest, the reuest is then sent automatically to the

Purchasing department where all reuests are being sorted and analy8ed for

bidding. @nce bidding is done, the purchasing department selects the winner and

gives the purchase order to the supplier of the product that corresponds with the

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purchase reuest number. &he inventory functions as a storage for deliveries and

as a monitor to see what needs to be maintained and reuested in the corporation.

Aature of %ompany: etail *ndustry.

1.2. Statement of the Problem

General Problem

How to Improve the Purchasing and Inventory process of Shangri-La

Corporation for the establishment of a more Ecient and Eective !usiness

Process"

!s the reuisitioning department demonstrated and illustrated several

+ey issues a"ecting the Materials)Supplies euisition Slip and Purchase

euest transactions in their daily operations, Bthe current manual process

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of Shangri-0a Pla8a %orporation hinders the establishment of an e4cient and

e"ective business process.

%urrently, the reuisitioning departments are implementing manual

methods on their everyday transactions with reuests. %ommonly, the use of

manual process leads to issues regarding to +eeping and logging of

important forms. &he tendency of misplacing a record has a high probability.

!nother factor to consider is the time reuired to 5nish a manual process

with all e4ciency and e"ectiveness, low security, minimum 5le-organi8ation

and the probability of information misinterpretation.

Specic Problem

1. !o" to enhance the proce of re#ueting$ ordering and

appro%ing deignated department interacti%ely&

%urrently, all reuests, orders and approvals are collected 5rst by the

secretary then it will be sent to the designated department. &he time

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reuired to deliver the reuest will not be real-time because submission to

designated departments is by batch.

2. !o" to enure that the re#uet "ill reach it proper detination

and to gi%e priority to certain re#uet&

Since the reuest comes in a paper form, there is a possibility that it might

be misplaced or sent to the wrong department. euests will more li+ely not

be considered according to their priority. &his will cause a bad e"ect to the

e"ectiveness of the business.

'. !o" to a%oid information miinterpretation&

Since the company uses manual process in ordering reuests, there are

possibilities that the written items to be purchased by the department would

be misinterpreted since human penmanship varies di"erently.

(. !o" to organi)e the information on a computer and ha%e a back*

up of the procee completed.&

@nce a reuest form has already been completed on its process, it is a hassle

to +eep and organi8e the paper forms in a storage or cabinet. Ao bac+-up of

data will be available once unepected happenings occur.

+. !o" to impoe ecurity to form that need condentiality&

Since the system contains con5dential information, the forms should be +ept

secured. *f it will continue to be in a paper form, there is a possibility that

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information will be shared easily since the papers are put into outgoing trays

and can be eposed to any unauthori8ed personnel.

1.'. ,b-ecti%e

General ,b-ecti%e

o integrate the purchae and in%entory ytem into a computeri)ed

ytem.

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&he main obCective is to develop an *ntegrated Purchase and *nventory

system for Shangri-0a Pla8a %orporation in order to become more e"ective

on purchasing and inventory processes and e4cient on professional

procedures such as decision ma+ing.

&he developers will develop a real-time automated system that will

improve the way how purchase and inventory process is done in Shangri-0a

Pla8a %orporation. &he primary purpose is to provide convenience, higher

processing accuracy and simpli5cation of current practices on a manual

system.

Specic ,b-ecti%e

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1. o de%elop a module that "ill proce all tranaction in the

purchae and in%entory ytem "ith a real time feature.

Since tas+s done with a computer can easily be processed and

received, the developers will be able to transform the current manual

process into a real time processing mode.

2. o automate the purchae and in%entory method of Shangri*/a

Pla)a orporation for preciion and reliability of information.

&here will come a time that the company will need the completed

information for reference or for legal purposes. &he developers will develop a

system that will aid the company to do tas+s with easiness.

'. o computeri)e information and log all detail.

&he developers will ma+e a form where a certain personnel can input

reuests and response through the use of a computer. 3y this,

misinterpretation will be avoided.

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(. o upgrade to an automated ytem from a manual ytem to

promote eciency.

&he developers will design and develop a system that will handle all

the processes in purchasing orders from reuisitioning departments. &his will

help the company on retrieving the records with ease and will from the

possibility of record loss.

+. o create a ecurity module that "ill protect all the condential

record from falication and theft.

&he developers will create a feature that will provide controls for

diverse hierarchies of personnel in the company. &his means restrictions will

be enforced to unauthori8ed personnel.

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1.(. Signicance of the Study

o the ompany

&he proposed study will provide fast and reliable transaction process

ensuring the security of 5les and it will also enable the user to +eep trac+ the

daily operation. %ost of o4ce resources will be minimi8ed.

o Peronnel of the ompany

&he users will be able to provide real time information anytime. !rchiving

method will be much easier and accurate.

o Supplier and ontractor

&he clients will be able to acuire information and fast response

regarding to the status of their proposal. 0ea+age of information about their

bidding result will be con5dential.

o e%eloper

&he study of purchase and inventory system can be a learning

paradigm in Software !nalysis and Design subCect to enhance the

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developers +nowledge and entrepreneurial s+ills as well. &he proCects goal

is designed to help developers improve academic competence, develop

employability s+ills, implement a career plan and participate in a career

pathway in preparation for careers in *& industry or services sector after

college graduation. &his goal can be achieved through the adviser who

guides the developers in the process of ma+ing the system and

documentation. &he output of this study is a source material that can be

used by any purchase and inventory capable company.

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1.+. Scope and /imitation

S,P3

Purchae 4e#uet is a process to notify the purchasing department of

items it needs to order, their uantity, and the time frame that will be given

in the future.

Purchae 4e#uet ahboard is the location where all Purchase euests

of the euisitioning Sta" goes. *t is accessed by every euisitioning

Manager to review the Purchase euest before it is 5nally sent to the

Purchasing Department

Purchae 4e#uet Statu is where the users can see the status of their

Purchase euest. &heres a column made for the Manager and one for the

Purchasing Department. @nce the Purchase euest is approved by the

reuisitioning manager, it then displays =es on the managers column and so

as to the Purchasing column.

Purchaing module will provide automated processing of purchase reuest

of every department giving the proCected number stoc+s needed. &his will

also o"er the list of participating contractor for the bidding procedure.

5ie" Purchae 4e#uet is where all the approved Purchase euests by

the euisitioning Department $ead goes. *t displays the P number, date

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and time reuested and the 2 columns that shows the status of the Purchase

euest made by the euisitioning Department.

3*/ogbook is where all the approved Purchase euests of the Purchasing

Department goes. #verything recorded here is subCect for Pre bidding which

is manually done.

Schedule Pre*bid onference is where to assign suppliers for the

corresponding Purchase euest.

/it of Supplier is the complete list of the Suppliers for products.

In%entory is the process for managing and locating obCects or materials.

5ie" Item is where all the items delivered in the %ompany goes

6S4S or 6aterial7Supplie 4e#uiition Slip is a process wherein the

reuisitioning department reuests the delivery of the delivered product

from the store room to the department reuesting for the speci5c item.

8e" Purchae ,rder is where the Purchasing Department orders the

product listed in the Purchase euest to the Suppliers)%ontractors.

Setting is made available to the administrator or to the purchasing department

where the user settings, date and time and uantity levels are set.

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/I6I9I,8S

Bidding procedure is a process by which the company choses the best

bidder that sells the best product at low cost but not diminishing the product

uality. *n addition, module for the bidding procedure will not be included

because it reuires human Cudgment to ensure proper product assessment.

9ccounting 6odule for accounting department will not be included in this

system because we are mainly focusing on the purchasing inventory of the

company.

3conomic ,rder uantity '#@( system that produces ecommended

Purchase eport with option to create purchase orders based on sales history

or budget

4eturn on in%etment '@*( analysis during purchase order entry helps

determine optimal order uantity based on uantity brea+ pricing

5endor dicount by weights and cubes

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chapter 1- introduction

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