MinisterStork2223
Please find in the following document a description of the current…
Please find in the following document a description of the current system and the problems associated with NewFashion given below:
New Fashion Inc., sells sweatshirts and T-shirts. They have defined their mission as being a provider of high-quality sweat and T-shirt apparel using simple designs. More specifically, they purchase the right to use the name/logo of institutions (e.g., universities) and sports franchises. For the first two years of operation, New Fashion operated out of a garage. However, because of a rapid increase in demand, the owners leased some office space that housed all aspects of their operation: sales/marketing, production, distribution, billing, and administration. During the first year after the move, New Fashion increased its workforce by 50% in an effort to keep up with demand. However, profits have started to dwindle. The owners feel that the lack of a proper information infrastructure is the main cause for the drop in profits. New Fashion would like to upgrade its information system in an effort to restore profitability and to continue to expand its business. The following is a breakdown of the current system, problems associated with the current system, desired enhancements for the new system, and constraints for the delivery of the new system.
Current System
Sales/Orders
New Fashion employs a total of 20 people. The breakdown is as follows: 5 in sales/marketing/administration, 10 in production, and 5 in distribution. The sales effort consists of two types of catalogs: one that is mailed to subscribed customers and a web page that is simply a static re-generation of the printed catalog. They also advertise in various publications that target their customers such as alumni magazines, sports team newsletters, etc. Orders are received in a number of different ways: U.S. Mail (55%), telephone (30%), and email (15%). Orders that are received via the U.S. Mail and the telephone typically originate from the printed catalog. Email orders originate from the web-based catalog.
Once Orders are received, the order information is entered on a sales order form. A unique sales order number is entered at the top of each form. The forms are then placed in a folder and wait to be entered into the computer. After a batch (20 or so) of Orders have been accumulated, an order entry clerk opens a template in Microsoft Word. This template mirrors the order form. The clerk then re-enters the order information in the Word file and saves it using the unique order numberas the filename. Each new Order is saved in a folder on the computer named INBOX. The original Orders are placed in a three-ring binder for future reference.
Once an Order is placed in the INBOX on the computer, order clerks then review the Order and prepare it for distribution. Billing and shipping addresses are verified and placed in the correct format. The amount of the Order is calculated. This amount includes the cost of the products, any applicable sales tax, and royalty fees. Royalty fees are paid to the institution and/or sports franchise whose name/logo is being used for a particular product. The order clerk calculates royalty fees by referring to a Microsoft Access database that contains all the royalty agreements for New Fashion. Royalty fees can be administered in three different ways. First, as a flat rate that is paid every year with no additional charge for each use of the name/logo. Second, as a charge for each use of the name/logo. Third, it can be a combination of a yearly fee and a charge
New Fashion 2
for each use of the name/logo. After the clerk has calculated the total order amount, they verify that the amount is less than $500. If it is more, they have to verify that the customer has been approved for orders above $500. Customers that exceed $500 without approval are sent a rejection notice in the mail and their Order is moved to a REJECTED folder on the computer. Customers can acquire ‘approved’ status for orders in excess of $500 by filling out an application and New Fashion will run a credit check on them in order to grant them this status. Information on customers that have approved status is stored in another Access database. Both the royalty fees and customer status databases are maintained and stored on the same computer that stores the order Word files. All Approved Orders are moved to an APPROVED folder on the computer and two copies are printed out.
Distribution/Billing
The printout of the Approved Order is sent to distribution. Distribution personnel check for the availability of the product item (e.g., sweatshirt). If the product is available, they attach the Order to the product and send it to the press for creation of the name/logo. If the product is unavailable, they first check the Purchase Notice Binder to see if more have been ordered and when they expect the shipment to arrive. If a Purchase Notice does not exist, one is created. Distribution clerks are supposed to monitor inventory levels and create Purchase Notices when necessary. The Order is then moved from the APPROVED folder to the BACK ORDER folder on the computer and the clerk sends a backorder notice to the customer alerting them to the delay.
After the product(s) is pressed, it is sent to distribution for packing. The two Order sheets act as Invoices. One is packed with the customer’s order and the other is sent to the orders clerk for processing. The clerk places the shipped-date on the order (in the Word file) and moves the Order File to the SHIPPED folder. At this time, the clerk opens a Microsoft Excel spreadsheet that contains both Accounts Receivable and Accounts Payable information. The order number and amount due are keyed into the spreadsheet. As customer payments are received, the Accounts Receivable portion of the Excel spreadsheet is updated and the Order is moved from the SHIPPED folder to the COMPLETED folder.
Purchasing
Purchasing personnel (in the production department) process Purchase Notices by placing calls to suppliers. New Fashion policy dictates that they obtain at least three quotes from prospective vendors. These quotes are recorded by Purchase Order Number in a notebook for future reference. When an acceptable quote is obtained and agreed upon, a Purchase Order is created using a template in Microsoft Word. A unique Purchase Order Number is used as the filename and the file is saved in the PURCHASE ORDERS folder. Two copies are printed out. The first copy is sent to the vendor and an Accounts Payable entry is created in the Excel spreadsheet.
The second copy is stored in a binder where it is used to verify incoming shipments. If the shipment is correct, the person who received it writes his/her initials on the Purchase Order and moves the Word file from the PURCHASE ORDERS folder to the COMPLETED ORDERS folder. At this point, Purchase Order payments are processed. As Purchase Orders are paid, the entries in the Accounts Payable section of the spreadsheet are updated accordingly.
New Fashion 3 Problems associated with the current system
The current system has worked in the past, but only when New Fashion dealt in small volumes. Now that demand has increased, the system is riddled with problems. The following is a breakdown of the most critical problems:
There are several instances of redundant effort. For example, Orders are written on a standard form and then re-keyed in Microsoft Word.
The system pushes too much paper. For example, Purchase Orders are stored in a binder until the shipment is received. This is cumbersome and difficult to manage.
Too many manual procedures. For example, Orders need to me moved from folder to folder based on their status (e.g., APPROVED). This introduces a large margin for error.
Lack of integration (both process and data). The different types for applications (e.g., Word, Excel, Access, etc.) don’t communicate with one another.
There is a tremendous lack of inventory control. First, there are no procedures in place to effectively determine when to replenish inventory. Also, late shipments can cause production delays. There must be a better way to keep track of shipment status information.
The current method for handling consumer credit is unacceptable. Management is looking for a more expeditious and effective way to approve customer with orders that exceed $500.
Come up with a more effective method for customer payments (e.g., credit cards).
System does not provide an effective means for interacting with customers. This can come in
the form of customer profile information (e.g., preferences, buying patterns, etc.) as well as when/where to contact them.
Desired enhancements for the new systems
In addition to these problems, New Fashion management has complained that the current system does not provide effective management information. All the reports currently being generated are operational in focus. These can include Orders, Purchase Orders, Accounts Payable and Receivable spreadsheets, etc. The system does not provide management with reports that enable them to aggregate data in order to identify trends or to make more accurate decisions such as vendor selection and personnel assignments. The information needs to be stored and maintained in a centralized repository (integrated database )so that these types of reports can be easily generated.
Constraints for the delivery of the new system
Management has identified the following constraints for this project.
Implementation must be on or before 3/31/2024.
No new facilities.
Personnel must remain the same.
Only four additional computers have been approved for this project.
Question:
Based on the problems and needs described in the above document, please develop the following:
1- The list of functional requirements for the new system
2- The list of non-functional requirements for the new system
