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System Analysis and Design

Supply Chain Management System

Of BBQ Soldier

Cua, Roselyne G.

De Guzman, Pamela Louise. T.

Dungca, Portia Abigail Joy A.

Gatmaitan, Aristotle Onassis C.

Marasigan, Nikka Lalaine R.

Mateo, Evangeline B.

Ocsan, Shaira C.

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Abstract

This study aims to provide an organized and effective supply chain

system for BBQ Soldier. BBQ Soldier had a good start in its operations

since its business opening but experienced various problems in their

supply management later on. To provide recommendations for their

problems, the proponents used variety of techniques such as interview

with the owners and using the internet as source for related literature. The

results of the study recommended that having an alternative line of

suppliers and a network of wholesale distributors will help the business

cut down inventory costs and ensure timely delivery of products and

services to their customers.

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Introduction

BBQ Soldier, a burger restaurant that is directly operating under

Real Edge Company, was founded on May 2015 by Partners A, B, C, and

D. The name was inspired by the famous song “Buffalo Soldier” sung by

Bob Marley. The partners were classmates and friends since 2012 and

eventually decided to put up their own business since November 2014.

The business is located at 2286C Topacio St. Cor. A. Francisco, 1017 Sta.

Ana, Manila and operates from 4:00 pm to 1:00 am Tuesday to Sunday.

The restaurant mainly offers a wide variety of burger products and buffalo

chicken wings to its constituents. Several reviews have also been

published online and have helped significantly in the advertising and

marketing efforts of the restaurant. The first few months of the operations

had gone by smoothly and nearby residents had started to be familiar with

what they offer. The restaurant gets most of its inventory in a nearby

supermarket on a weekly basis. Its main ingredient, ground beef patties, is

delivered by their one and only supplier on a daily basis. However, sales

started to decline on August 2015. This might be due to the inclement

weather conditions challenging the region and consecutive delays in

supply deliveries. This has led to customer dissatisfaction and a problem

in the internal inventory control of the restaurant. Sales slightly increased

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on September 2015 after the rainy season but its inventory and supplier

problems still prevail.

Research Method

The proponents conducted an interview with the restaurant partners

to gather sufficient information regarding its start-up and day-to-day

operations. The internet was also used in gathering images and

information.

1. Literature Review

“Supply chain management is the streamlining of a business'

supply-side activities to maximize customer value and to gain

a competitive advantage  in the marketplace. Supply chain management

(SCM) represents an effort by suppliers to develop and implement supply

chains that are as efficient and economical as possible. Supply chains

cover everything from production, to product development, to the

information systems needed to direct these undertakings.” (Investopedia,

2015)

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SCM aims to centralize the control of production, shipment and

distribution of the product. By doing this efficiently, companies are able to

cut down costs and products faster. This can be done by implementing a

tighter control of internal inventories, production, distribution and sales.

“Food Supply Chains provide the link between primary producers

and the consumer through intermediaries such as processors,

manufacturers, ingredients suppliers, marketing organizations,

wholesalers and retailers. Not only must all of these aspects of the food

supply chain link effectively together, but they must address the issues of

sustainability by considering the economic, social and environmental

aspects and impacts of food supply. As supply chains become more

integrated, there is also greater emphasis on food safety and quality,

traceability and public health. Primary producers now have to work as

part of the chain to meet the needs of consumers in a dynamic workplace.

This degree, therefore, focuses on addressing these issues, as well as the

management and quality enhancement of products from field to fork.”

(Royal Agricultural University, 2015)

According to Professor Steve Melnyk, in the modern world of

Supply Chain Management: Strategy, if it doesn’t consider the role culture

plays in it, it is bound to fail. The culture understands how the game is

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played. It can wait things out, and it can transform a strategy from a top

management initiative into one that’s acceptable by the system as a whole.

Culture is one of the many forces that a company has to develop. When

used correctly, culture can ensure that your front line employees are doing

what needs to be done when they interact with customers. This results in a

company that is in true harmony, better customer service and experiences,

and decisions that are made by people who know and understand the

overall goals of their organization.

(Steve Melnyk, 2015)

Problem in the company

BBQ Soldier initially had a good start in its operations since its

opening on May 2015. But after a few months, the company started

experiencing a decline in their sales due to unforeseen weather conditions

and delays in raw material delivery with the restaurant’s sole supplier.

During the proponents’ interview with the restaurant owners, the

following problems have been listed down:

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BBQ Soldier only has one supplier of their main ingredient,

ground beef patties. The supplier, which is supposed to be

making deliveries on a daily basis, is making the deliveries

every other day, thus making the lead time longer than

normal. This results to a shortage in the restaurant’s daily

operations because demand is continuous but the supply is

limited.

BBQ Soldier buys most of its other ingredients in the

supermarket. Because of this, they are incurring higher

ordering costs, which in turn is being passed on to their

customers through higher menu prices.

2. Recommendation and Problem Solving

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Upon careful analysis by the proponents, the following

recommendations have been formulated:

The only supplier, which is incapable of meeting the

restaurant’s demand, should be replaced if possible. If not,

the restaurant and supply owners must meet and discuss the

current problem and come up with a tighter supply terms

and conditions.

The restaurant must have alternative or contingency

suppliers in line just in case that the first supplier cannot

meet the demand or the deadline. The restaurant must have

an organized flow of purchases depending on the material

that it is ordering, including an alternative supplier as a

contingency plan. Knowing the inventory re-order point is

also important. In doing this, they can be assured that there

will be timely delivery of their ingredients.

The restaurant must also have a network of distributors for

their other ingredients instead of buying them at local

supermarkets. In doing this, they can cut down on ordering

costs and purchase prices will be at a wholesale basis.

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3. Conclusion

BBQ Soldier can be a profitable business if it will organize its

supply chain. Committing to one supplier can be an advantage because it

will ensure uniformity in the quality of raw materials but it can also be a

disadvantage in case that this sole supplier fails to meet the restaurants

demands. Therefore, having an alternative line of suppliers will help in

ensuring that products will be delivered to customers on time but the

company must also make sure that these alternative suppliers meet

industry quality standards. Also, maintaining a wide variety of distributors

for their ingredients is also a good way of cutting down on ordering costs

by way of wholesale (bulk) ordering thru which the expenses made by the

company may be decreased. An effective and organized supply chain of

BBQ Soldiers can increase their productivity and will help the company in

garnering higher revenues in the long run.

4. References

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Investopedia. (2015). Retrieved from Supply Chain Management: http://www.investopedia.com/terms/s/scm.asp

Royal Agricultural University. (2015). Retrieved from Food Production and Supply Management: http://www.rau.ac.uk/study/undergraduate-study/food-production-supply-management/bsc-hons-food-production-and-supply-management

Steve Melnyk, P. (2015, September 27). Supply Chain Management Review. Retrieved from Supply Chain Outlook Summit:Culture Counts: http://www.scmr.com/article/supply_chain_outlook_summit_culture_counts

BBQ Soldier System Design Problem and Solution

Supplier

0 Food Ordering

System KitchenCustomer

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Context Data Flow Diagram is the entrance of a data flow model. It contains one and only one process and does not show any data store.

Level 1 Data Flow Diagram

Order Order

Bill

Order Detail

Inventory Detail

Orders

Inventory Details

Manager

Customer1

Order FoodKitchen

D Inventory

D Order

2Generate Report Manager

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Inventory Details Reports

Inventory Order

Inventory Order

Based on the diagram, the “Customer” will place an order. The “Order

Food” receives the order processes it and forwards it to the kitchen. The

order will store this as an order data and will update “Inventory” if the

customer’s order is available. The “Order Food” will also process the

“Bill” to the customer. “Manager” can receive reports through the

“Generate Reports” process in which inventory details will be taken from

and order (customer transactions) details as input from the inventory and

order data store.

“Managers” can also initiate the order “Inventory” process by providing

“Inventory Order”. The process will forward the inventory order to the

“Main Supplier and stores the updated inventory details in the inventory

store data.

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Order Inventory

Main Supplier

SecondarySupplier

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As we know, the “Main Supplier” has always delayed their delivery so we

come up into the option of a “Secondary Supplier” as a solution to the

problem. The BBQ Soldier has no contingency plan when it comes to their

supplier. Through this another supplier, it will minimize the time, cost and

delayed of their needed demand. Also less worry to the owner.

The system maximizes the usefulness of information through the

following:

The BBQ Soldier can easily check the availability

of the customer’s order.

The order and billing process is simultaneously

encoded so the information or document directly

stores in the system.

As to Inventory, management always uses “FIFO

Policy” (First In, First Out) especially if the product

is perishable, hence, what was bought first, must be

consumed first. With the help of the system, the

manager can easily track inventory count.

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The manager can now measure when to purchase an

order. It will also minimize the delay from the main

supplier and cost of buying burger patties from

other stores because now, they have a secondary

supplier to run to.

The new system will enhance the following:

Inventory (Stock)

The management will be stricter than before in

terms of what raw material to be ordered first, when

to order, how to minimize the cost and also the

margin of safety where you can measure the buffer

of your supply. With the use of system, it will be

feasible for the management to determine which

from their inventory is/are easily consumed and

which isn’t/aren’t.

Purchase Order

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Through an ingenious way of inventory

management, the purchase order will be in control.

The management must have a buffer stock so if ever

the main supplier will have a delay (of let’s say a

day), the company will still have a supply of their

own. And the customer’s order and billing will

stores directly to the system.

How managers need to understand cost associated with the following:

Production

Production cost is the cost that the business incurred

in providing service. Managers need to understand

the cost of production so that it can make a better

pricing of its product and to have a picture on the

total cost of the business.

Distribution

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BBQ Soldier has a direct contact to the customers

since it was the first branch opened.

Storage

BBQ Soldier stores a lot of frozen products like

burger patties, meat and ham also with perishable

goods like cabbage. As to proper storage, the

inventory manager will maintain the important

factors like time and temperature to avoid

contamination and spoilage as well with proper

handling and sanitation of the storage room of this

products.

Security

Nowadays, cases of burglars are rapidly increasing

mostly here in Metro Manila. Most of

establishments today like BBQ Soldier installed

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CCTV cameras, not only to record baleful incidents

but also for customer’s safety. And when it comes

to internal control, the system will keep on track of

inventory counts, orders, billings and other

confidential files that only a manager or other

trusted employees can access through logging on

their accounts. Managers should be vigilant and

responsible in securing this business transactions

inside and out.

Information Retrieval

A manager should be knowledgeable enough to

their system. In case of retrieval of information, the

manager can easily respond and take action. The

manager can comply immediately if such problems

occur in the system. This information also provide

monitoring of internal control to detect fraud, waste

and abuse of any aspects in the management.

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System Analyst

What is a System Analyst?

A System Analyst is a professional in Information Technology

who specializes in analyzing, designing and implementing a well-order

system. It selects and configures computer systems for an organization or

business. Their job typically begins in determining what the computers

main intention is. This means that the analyst must know how and

understand the general and specific objectives of the business, as well as

what the individual user requires. Once determined by the system analyst,

it can choose an appropriate system that will suit and accomplish the

company’s goal.

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Roles of a System Analyst

SYSTEMS ANALYST AS SUPPORTING EXPERT

Their main role is to identify, understand and plan a sequential

process of its management in an organization or business entity in a

technical way to minimize time and cost as well as to maximize benefit. It

will give the users a feasible way of controlling each department through

the use of new technical requirements that are properly integrated with

existing processes and sets of skills. A system analyst may set up a new

computer system, both the hardware and software like adding a new

software application that will help increase computers productivity.

SYSTEMS ANALYST AS AGENT OF CHANGE

A system analyst can be defined as a person who serves as a

catalyst for change, develops a plan for change, and works with others to

facilitate such changes. They also advocate a particular avenue of change,

because changes in information system do not occur independently but

because changes in the rest of the organization as well.

SYSTEMS ANALYST AS CONSULTANT

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System analyst frequently acts as a system consultant to

humans and their businesses for they rely on the information system users

to help them understand the organizational culture from other view point.

And business organization hired outside consultants for they believe that

they may bring fresh and advantageous perspective that other people in the

organization might not possess. System analyst considered as consultant

for the reason that they provide advice or information systems strategy,

policy, management, security and also conduct independent third-party

reviews to asses quality assurance practices, software and information

systems.

The Importance of a System Analyst

The importance of a system analyst is to choose the most

efficient and effective solution to make a recommendation regarding its

management while making sure that the system meets all the criteria when

it comes to the needs of the company. In order to come up with the best

decision, a system analyst should have a solid knowledge and

understanding in computer hardware and software. They keep updated

with the latest technology. They are responsible for the design and

development of a new computer system, or customizing an existing

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system. They typically perform testing to make sure systems are working,

and they may train end users or write manuals as per instructions.

Application of System Development Life Cycle

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