Bis assignment – june (new)

SRI LANKA INSTITUTE OF INFORMATION TECHNOLOGY- FACULTY OF BUSINESS

Group Assignment - 2016 June

IM100 - Business Information Systems

Lucky Lanka PLC Food Cafe Point of Sale System

SLIIT – Faculty of Business

Department of Business Management

BBA Special (Hons) Degree/ BBA (Honours) in Business Management

Year: One Semester: One


Yuresh Nadishan

1

Faculty of Business

Submission of Group / Individual Assignments: Cover Sheet

Date of Assignment: 04.07.2016 Due Date: 04.08.2016

Date of Submission: 02.08.2016

1. Course: Bachelor of Business Administration

2. Year: 1 3. Semester: 1 4.Module Code: IM100

5. Module Name: Business Information System

6. Lecturer-in-charge: Chathurangika Kahandawaarachchi

7. Title of assignment: Information Systems in Business

Declaration;

We certify that:

This assignment is our own work, based on our personal study and research.

We have duly acknowledged all material and sources used in the preparation of this assignment.

Neither the assignment, nor a substantial part of it, has been previously submitted for assessment

in SLIIT or any other institution.

We have not copied in part, or in whole, or otherwise plagiarized the work of other students.

We are fully aware of the rules and regulations of SLIIT regarding plagiarism and exam

malpractices. I/We understand that I am/all of us are liable to bear the consequences of (anyone

involved in) plagiarism.

The use of any material in this assignment does not infringe the intellectual property/copyright of

a third party.

All resources documents/reference materials are attached to this document.

Student ID Student Name Signature Contribution

%

BM16432376 Nadishan G.S.W.Y. 100%


Yuresh Nadishan

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In 1991 Mr. Lal Keerthi Gunawardena, the current chairman started Lucky

Lanka as a self-employment with a single cow and a delivery of 100 glasses of milk. Today

Lucky Lanka has proudly expanded to national level, buying milk from thousands of dairy

farmers across the country and serving millions of customers nationwide. We have created

hundreds of employment opportunities to fellow Sri Lankans, contributing to the country’s

economy.

At the early years of the business the production process was done manually

and only had the limited capacity of delivering 300 glasses per day. Achieving success over

the years the company became a limited liability company in year 2007 and currently

operates as a national level enterprise in a wider scale with the goal of reaching the global

market. In order to meet the needs of current and potential customers Lucky Lanka offers

traditional dairy products such as curd, Pasteurized milk, Sterilized milk, UTH milk,

(strawberry, chocolate and vanilla) flavored milk, drinking yoghurt, fresh fruit yoghurt and

(strawberry, chocolate and vanilla) along with wide range of wholesome non-dairy products

including treacle, fruit jelly and fresh fruit drinks.

So far Lucky Lanka journey has been exciting, challenging and most

importantly a learning experience for us. Accolades such as SLS, ISO 22000 -2011 and

HACCP international standards were remarkable milestones of Lucky Lanka’s journey

towards creating a healthier nation. We will continue our legend with determination and

excellence.


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Table of Contents

Abstract……………………………………………………………………………………..3

1. Introduction to Business Organization...........................................................................6

2. Automated Business Process…………………………………………………………..7

3. Information System……………………………………………………………………8

3.1. The components of the IS ………………………………………………………..9

3.1.1. Hardware …………………………………………………………9/10/11/12

3.1.2. Software .......................................................................................................13

3.1.3. Databases .....................................................................................................13

3.1.4. People………………………………………………………………………13

3.1.5. Procedures………………………………………………………………….13

3.1.6. Telecommunication networks……………………………………………...14

3.2. The Systems Concept ...........................................................................................15

4. Measures for ethics and security of the system ...........................................................16

5. Development/ acquisition process of the system …………………………………....17

6. Expected benefits from the system ………………………………………………….18

7. Management of the IS …………………………………………………………….....19

8. Problems/ Issues currently faced with the current IS activities ……………………..20

9. Suggested improvements…………………………………………………………….21

10. Conclusion………………………………………………………………………...22

11. Lessons learnt ………………………………………………………………….…23

References…………………………………………………………………………….…..24


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List of Tables

Table 1: The System Concepts…………………………………………………………..14

List of Figures

Figure 1: Display…………………………………………………………………………9

Figure 2: Mouse…………………………………………………………………………..9

Figure 3: POS Keyboard………………………………………………………………...10

Figure 4: Barcode Reader……………………………………………………………….10

Figure 5: Cash Drawer…………………………….…………………………………….11

Figure 6: Receipt Printer………………………………………………………………...11

Figure 7: Pole Display…………………………………………………………………...12

Figure 8: Credit Card Reader…………………………………………………………….12

Figure 9: Local Area Network.……………………………………………………....…..14

Figure 10: Wide Area Network……………………………………………………….....14

Figure 11: The System Concept…………………………………………………………17


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1. Introduction to Business Organization

Lucky Lanka Milk Processing Company is an incorporated Sri Lankan

company in the field of milk processing heading towards building a healthy nation through

sharing the goodness of every drop of milk, we deliver to your door step. A healthy nation is

a wealthy nation. It is vital to include good nutrition in delicious food, but is this possible?

With the generation of expertise, we ensure the delivery of good quality, nutritious milk

products adding more value to customers’ life. Engaging high quality ingredients with

advanced technology we explore the potential and possible nutritional values in the products

of Lucky Lanka to inherit it to the next generation to come.

As a responsible corporate citizen Lucky Lanka provides its millions of

customers with high quality milk products. Prior to the milk processing the pure natural

ingredients will undergo a quality controllable test to ensure that those are meeting

company’s standards. Hence Lucky Lanka is the only yoghurt manufacturer in Sri Lanka

which accredited with SLS certification for the first time in the region. We share a better

equation with our independent farmers in delivering good nutrition to the nation as one unit.

Thus lead us be the most competitive milk product provider in Sri Lanka achieving

excellence and quality and delight our customers more.

Recently they opened a food cafe in Matara town to sell their dairy products to

customers and they maintain a fresh milk bar in their shop. They named this food cafe as

“Kiri Katha cafe” They sell their own fresh dairy products using this café.


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2. Automated Business Process

The point of sale (POS) is the time and place where a retail transaction is

completed. It is the point at which a customer makes a payment to the merchant in exchange

for goods or after provision of a service.

We analyzed about Point of Sale System of Lucky Lanka food retail shop

[Kiri Katha cafe]. It is not only a food retail shop but also a restaurant.

POS system performs a major part in ‘Lucky Lanka Food Retail shop [Kiri

Katha cafe] transaction activities, and using this system they can do their business activities

easily as well as enables them to redeem their employees in other tasks hence this system

reduces the number of employees required in transaction procedure.

Business organization carry out several activities by using their POS system

and some of the tasks (or protocols) practicing them are mentioned below:

.Transaction Recording Process

Transaction are recorded against each cashier until one transaction is processed another will

not begin.

Inventory Control Process

When reach to the re-order level system can inform to management of branch. System can

update their stock level automatically.

Accounting Process

System can keep daily transaction. End of the day system provides performance of the day.

System update accounting database end of the year.

Credit/Debit card payment process

Kiri Katha cafe café introduced VISA and MASTER credit card facility to their customers.

Recently they introduced Sampath shopping debit card facility to their customers. When they

deal with debit or credit card automatically update their Sampath bank account.


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3. Information System

POS system is the time and the place where the transaction originate. At that

point trader shall calculate the amount or the monitory value of the transaction as well as the

needful other actions such as printing invoices help cashier to enter the payment method.

POS system which Kiri Katha café uses has the capability to record details about debtors and

when transaction happened that will cater the database to update figures about business

debtors as well.

To execute company has to register each item that they are trading and is vital

to design a unique barcode to each item. Kiri Katha cafe has their in house storing facility and

they allocate a barcode to their products when the products are storing. Once the stocks

arrival they update stock information to the system. When customers are purchasing dairy

foods from them, they use POS system to furnish the invoice, calculate discounts, select

payment methods and carry out other needful actions. Once the transaction has done POS

system updates necessary databases.

POS system contains hardware such as display, POS keyboard, cash drawer,

barcode reader and etc. POS system eliminates old methods such as band written invoices.

Furthermore we can explain the advantages of POS system as well as its benefits over other

methods.

Pros and Cons of Point of Sale System

Pros

Cons


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3.1. The Components of the Information System

3.1.1. Hardware

1. Display

Figure 1: Display

Counter top space is always precious. They will want to minimize the footprint of your POS

system.

Flat panel monitors are ideal for POS applications. They use far less power, generate far less

heat and do not rob counter space better left to product displays.

2. Mouse

Figure 2: Mouse

A computer mouse is an input device that is most often used with a personal computer.

Moving a mouse along a flat surface can move the on-screen cursor to different items on the

screen. Items can be moved or selected by pressing the mouse buttons (called clicking).


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3. POS Keyboard

Figure 3: POS Keyboard

One refinement you can make to your POS system is to replace the standard computer

keyboard with a POS keyboard. A POS keyboard more closely resembles a cash register key

layout. The keys are programmable and can be setup to do one-key functions such as Total,

Produce, Soft goods, Discount, etc.

4. Barcode Reader

Figure 4: Barcode Reader

The most efficient and accurate way of ringing up sales at your checkout station is by using a

barcode scanner. That is why all of the major food chains use them and why more and more

small businesses are using them. Many POS software applications have barcode label

printing capability.


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5. Cash Drawer

Figure 5: Cash Drawer

A cash drawer is essential. It is the major peripheral in any POS system. This cash drawer

opens when sales person ring up a sale, just like a cash register drawer. You can get locking

cash drawers, plastic inserts to separate your bills and coins, plus a slot to stuff your credit

card slips.

6. Receipt Printer

Figure 6: Receipt Printer

As the name implies, this device prints your customer receipts. It can also print out a-z out

tape if required. There are numerous types of receipt printers, categorized-like any other

computer printer by its printing technology and its computer technology.


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7. Pole Display

Figure 7: Pole Display

Customers frequently like to watch you ring up their items. A pole display is a LCD or LED

sign which shows the customer each item that is rung up. It can even flash little advertising

message to those waiting with their purchases.

8. Credit Card Reader

Figure 8: Credit Card Reader

A wireless POS terminal provides on ideal way for customers to pay for goods and services

from anywhere at any time without having to keep on hand or visit a fixed POS location.

Whether it is home delivery, Field service personnel, taxis a wireless POS solution allows a

business to accept credit card and debit card payment easily and securely.


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3.1.2. Software

Operation System

If you have a computer at home, it is most likely classified as a windows machine or a Mac.

There are other types, of course, but these comprise the majority of computers in the home

market. Microsoft windows is the leading operating system for enterprise computers. Kiri

Katha cafe also uses windows 7 Enterprise edition for their POS system.

POS Application Software

The POS application software adds the retail functionality to the POS system. It provides the

user interface and all the features that you will use during the operation of their business.

Later in this guide will enumerate those features and tell you which ones we think are

important.

Their POS application software was designed by SARASI Software Solutions Matara. They

also develop and maintain their POS application software.

Inventory Control Software

Inventory management software is a computer-based system for tracking inventory levels,

orders, sales and deliveries. It can also be used in the manufacturing industry to create a work

order, bill of materials and other production-related documents.

3.1.3. Databases

Kiri Katha cafe use databases to keep below information.

To keep information about their loyalty customers.

To keep stock and inventory details.

To record daily transactions (Selling, Purchasing,)

To record Credit and Debit card transactions.


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3.1.4. People

Kiri Katha cafe has 2 salesperson to handle POS system and SARASA software solutions

develop this POS system and POS application software.

3.1.5. Procedures

There are few procedures in Kiri Katha cafe.

Transaction recording procedure

procedure

procedure

procedure

3.1.6. Telecommunication Networks

Local Area Network

Figure 9: Local Area Network diagram

They use a local area network to connect their printer and scanner with POS system. They

use LAN switches, routers, network cables to build this network.

Wide Area Network

Figure 10: Wide Area Network diagram

They use a wide area network to connect their bank when Credit and Debit card transactions.


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3.2. The Systems Concept

Input Process Output

User Details. (Name,

Date of Birth, Address

and etc.)

Registering Users Login Credentials

User Name Login Registered User

Product Name,

Manufacturer,

Manufactured Date,

Expired Date

Add New Product Product ID, Barcode

Product ID Remove Product Removed Status

Product Name,

Product ID

Search Product Availability

Barcode Sell Product Not Available or

Available

Bill Details Refunding Cash Back

Table 1: The System Concepts


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First of all they should enter their cashiers’ details and they should create their

users’ accounts. To start the system they should log in to the system using their user name

and password. Using product name, Manufacturer name, Expired Date and Manufactured

Date they can add new products to the system. After add a product they can obtain Product

ID for that product. Using Product ID number they can remove or modify the product.


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Point of Sale system procedure.

Figure 11: The system concepts.


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4. Measures for ethics and security of the system

Security

To ensure the security of the system there is a user logging protect. User

logging system enables company to recognize the cashier who issued the bill. In Kiri Katha

cafe operations there are quite a few people access in the system hence this is very useful and

further system has the capability to change the password to strive the integrity as well.

Kiri Katha cafe management can monitor the functions of the users as well as

the time period each user active in the system.

System has a function to lock the cash drawer, to unlock the cash drawer there

should be either transaction or special procedure to execute by the user. As we discussed in

the 2nd paragraph company can track the user who did the transaction or opened the cash

drawer.

Kiri Katha cafe management use below methods to improve their security

1. Every cashier has a password and username to log in to the system.

2. They follow a network security method.

3. Branch manager can log in to the system anytime.

4. POS do not show important details about credit and debit card transactions.

5. Only cashier and branch manager can log in to the system. Other workers cannot log in the

system.

6. Branch manager can supervise the system using online method without any permission.


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Ethics

System has a database of customer’s details as well as system maintains the

orders that customers purchased (especially in whole sale) but these information are secured

and unauthorized users cannot retrieve information.

Kiri Katha cafe offers discounts to their whole sale and retail customers

throughout the entire year. Specially in April and December Company offers highest

percentage of discounts and the total and discount amount as per percentage is clearly shown

in the invoice in order to avoid deviation from the advertised discount the actual discount

offered.

Kiri Katha cafe management use below methods to improve their ethics.

1. They never disclose information about their loyalty customers.

2. Cashiers never exchange their accounts information among them.

3. They never disclose banking information to others.


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5. Development/ acquisition process of the system

Kiri Katha cafe has acquired their POS system from e Sarasa Software

Solutions. The system enables the company to automate the both retail and whole sale

transactions. This system helps company to offer speedy, reliable, convenient and attractive

service to their customers. Kiri Katha cafe has various methods of payments such as cash,

credit card, gift vouchers & etc. This system allows the user to accept any kind of payment.

To develop a system in house business organization has to use significant

amount of resources and comparing to the scope of the business as well as the requirement of

them out sourcing the development of the system is more desirable. To develop a system in

house business requires employees those who have knowledge and expertise to carry out

technical tasks. At the same time business needs more equipment and further consolidation to

prevailing infrastructure. Compared to the cost evolve in the in house development is very

high.

Kiri Katha cafe has general business activities hence there's no requirement

to have a tailor made system. Company has decided to hire the standard system which Sarasa

Software Solutions offers.


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6. Expected benefits from the system

Few years ago business organization really wanted an IS to meet their

requirements such as give expedite, orderly and quality service to their customers. System

enables Business organization to maintain database of their products, stocks, debtors and etc.

Kiri Katha cafe offers several methods of payments for their customers such as cash, credit

cards, and debit cards. This system helps Business organization to maintain accuracy of the

transactions and convenience of recording process. (Ex: - Information about debtors)

Another benefit of the system is recording their transactions and maintaining copies of bills

issues which allows business organization to recall a bill if they need.

Maintaining data about stocks and products prices helps Business

organization to satisfy their customer’s quarries in prompt manner. Kiri Katha cafe

participates Colombo and Jaffna international food festival which is organize by ministry of

cultural affairs annually and they have experienced convenience of this system when their

handling huge number of customers in a lesser time. Business organization says having an

information system helpful to reduce human errors as well as number of staff required and

also to minimize frauds and increase their efficiency. This system helps business organization

throughout their entire process which begins from stock arrival and ends from auditing. Kiri

Katha cafe deals with customer those who have different requirements of invoices (Ex:-

Government institutions required detailed invoices) System has option to select either normal

invoice or larger one more details. Duplicate copy of the bill which prints simultaneously

with the original helps staff to check and tally invoice and goods sold to avoid deviations. If

there is any doubt about a bill management can ask excuses from the cashier involved and

user login password system helps to identify the responsible personnel for a certain bill.


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7. Management of the IS

Kiri Katha cafe has out sourced the POS system. Once that was implemented

company maintains and enter needful data to the system. Entering data such as barcode, item

(product) s' name, price & etc. done by the Kiri Katha cafe. To gain the maximum use of the

POS system it's necessary to maintain it in a proper manner. Sarasa as the developers provide

the technical assistance to the operator while operator is executing slight managerial

functions of the system in order to maintain the system in higher standards.

They upgrade their system and POS software 1time for a year.


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8. Problems/ Issues currently faced with the current IS activities

Business organization has been using this system for more than 2 years and

they have experienced some issues of information system. Food cafe needs people those who

have special training on their system operate the system as well as they have to keep standby

crew in order to use the system continuously when there is an absence of trained employees.

When the staff wants to change the person who is operating the system it takes some time

because they have to execute certain procedures to hand over the system from one employee

to another employee. Once in a while there are some clients have special requirements in the

invoice. In that case business organization has to issue hand bill in order to satisfy their

requirements because the structure of the invoice is fixed and cannot change by the operator.

To run this system the operator needs various hardware such as computer, barcode reader,

receipt, printer and etc. When there is a malfunction of any equipment that may course the

entire system to break down. In order to achieve that kind of situation company maintains

standby set of each equipment and they have to spend money on that equipment also.

Kiri Katha cafe has in house graphic designing section as well as they

outsource the task of cover page designing and barcodes are design and insert at that point.

When there is an issue occurs at the initial stage and that may remain in the system for a long

time and some of them are detectable and some are very hard to identify. Even when they

found some error they have to follow certain procedures which are causing to increase staff’s

work load as well as business organization’s expenditure (Assigning same barcode for

different books.)

The business organization has experienced various issues as we discussed in

above paragraph when they are using the system. The operator has to monitor the system

from the beginning to the end. To minimize errors and use the system at highest efficient way

business organization has to train their employees continuously and also the staff needs better

multi crew coordination among them in order to minimize conflicts between users and the

system and also to give a better service to their customers.


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9. Suggested improvements

We as a group of students following business management degree at SLIIT

have done an assignment regarding the POS system used by Kiri Katha cafe and found some

defects of the existing system and the procedures executed by the user. In order to obtain the

maximum benefits of an IS it's compulsory to have at least few employees to play key roles

which required some sort of ICT knowledge. They should train to handle computer based

information system. Employees do not have sufficient knowledge about IT. We would like to

recommend employees should develop their IT knowledge.

At the moment company doesn't have employees those who are capable to

handle errors (disturbances) generated in the system. They cannot troubleshoot in the system.

We would like to recommend Kiri Katha cafe to hire employees those who have ICT

knowledge. We've seen another issue in the system which is the failures occurring while

carrying out transaction, in order to get rid of that we recommend company to install a new

POS application software.


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10. Conclusion

Kiri Katha cafe is one of the Sri Lanka's leading food café network develop by

Lucky Lanka PLC and throughout this assignment we studied POS system which are used by

them. We as a group of students following business management degree understood the

information system which is inside in the business organization. We visited to the Kiri Katha

café and studied components of the information system, ethics and security of the information

system, management of the information system, problems currently faced with the current IS

activities, development process of the system, expected benefits from the system and many

more about internal information of the system.

In this study we have realized that Kiri Katha cafe obtains more benefits using

the POS system. Accessing the technological environment and obtaining the systems like

POS is really beneficial for any kind of business organization. Furthermore we recognize that

technical support reduces errors, overhead and etc. At the same time company can experience

the privileges such as reliability, convenience and many more. In an ever changing business

environment it is crucial adjust accordingly. We have learnt that IT support is very critical to

every company in order to survive in the market as well as to satisfy their customers’

preferences in speedy, attractive and error freeway.


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11. Lessons learnt

We've carried out a study about an information system which is used by a

food cafe. They are using POS system in order to smoothen their transactions. We have

approached the system in various ways and we studied about benefits obtained by the user,

management of it, development, further improvement they need, hardware and software

needed and etc. We have learnt about computer based information system which is used in

food café. We have learnt about the fundamentals of a POS system as well as protocols of

using it. Furthermore we have learnt that proper management is very important in order to

maintain the system in rather higher standards. In an ever changing business environment

receiving information technology is very useful to reach organizations' goals in efficient

manner. We have learnt about how this system effects on a business as well as we have

identified pros and cons of it as well.


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References

https://en.wikipedia.org/wiki/Point_of_sale

https://www.sans.org/reading-room/whitepapers/bestprac/point-sale-POS-systems-security-

35357

http://www.sarasagroup.net/ [Software Developers]

https://www.cashierlive.com/book-store-POS

http://library.utem.edu.my/index2.php?option=com_docman&task=doc_view&gid=3204&Ite

mid=113

www.ultimatetechnology.com

http://www.barsnstripes.com/docs/POS4beginners.pdf

http://documents.mx/documents/POS-for-beginners.html

https://en.wikipedia.org/wiki/Point_of_sale

https://www.sans.org/reading-room/whitepapers/bestprac/point-sale-pos-systems-security-35357

https://www.sans.org/reading-room/whitepapers/bestprac/point-sale-pos-systems-security-35357

https://www.cashierlive.com/book-store-pos

http://www.barsnstripes.com/docs/pos4beginners.pdf

http://documents.mx/documents/pos-for-beginners.html

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