Grovil Woodcraft PDF

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Executive Summary Grovil woodcraft is one of the leading wood manufucturers in the Philippines. The company specializes on making small wooden kitchenwares, educational toys, customized pieces, decoratives etc. In producing such quality products, the company has its strengths and weaknesses. Over the past years, Grovil Woodcraft made use of organized papers to obtain the necessary pieces of information for the company to run. They have a manual operation in every department such as: Accounting department, sales department, and inventories. With this, the company is prone to have human mistakes that can be prevented with the use of information technology system. Companies that surrounds them, may it be their direct competitors, are already using information systems that is why Grovil Woodcraft may have a hard time competing with them in this aspect. Information systems are made to help run the company in the best way possible. It could easily contain pieces of information without having any difficulty. Also, it would benefit everyone in the company. The owners would have an easy way to see the flow of orders and work from the employees. The workers on the other hand would just be required with necessary skills, orientations provided by the company, to use the information system properly. This could save time and would lessen errors in handling important documents. The company is proposed to have three choices of information systems that would be fit for them and would help their company have a competitive edge. First information system would be Supply Chain Management. With the use of this, the company could track the order process, warehouse process, and delivery process. Grovil Woodcraft is presented with a customized supply chain management system to answer the needs of their companies. It is specifically designed for them so that the company would lessen mistakes and increase proficiency. For the second system, it would be Odoo software. In here, the company would purchase the system from a system provider. This is more affordable for the company, given the fact that it would be still adjusted to their needs. Odoo software provides a monthly and annual subscription to be used. Upon purchasing this, the company would gain profit in the short span of time. Last information system would be the Fishbowl software where in every feature are provided by the system provider. There is no need for the company to custom it to their needs. This information system also needs annual payment so that it could be used. Moreover, upon the calculations made, this system would also generate fast profits in a short time.

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The recommended information system that is more accurate, effective, and would bring success to the company is the Fishbowl Software: Manufacturing. Everything is already provided in that system and the company could really maximize the use of it. Every feature that this information system offers, are fit for Grovil Woodcraft. The company would have a good investment in this. With this system, the company would be able to experience growth in both the internal and external aspects of the business. Manual drafting of the necessary documents, especially in accounting, would now be stopped since the information system provides an appropriate database for that. The only thing the company is required to do upon buying this information system, is to train everyone who would use the system in their company so that it would be efficiently used, and the investment would not be a waste of money.

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Background of the System Study Company Profile History Grovil Woodcraft Philippines, Inc. was established by Mr. Gregorio V. Roasa in 1974 and is now one of the largest manufacturers of small wooden items in the Philippines. The factory and showroom are located on a 10,000 square meter land in the area of Barrio Pagsawitan, Sta. Cruz, Laguna. In addition, the company has also a showroom and pickup office in the metro which can be found at #4177 Ponte Street Barangay Tejeros, City of Makati. The company has a high mechanical factory that produces wooden and metal components for its own woodcarvers and artists to complete/finish and to supply for other Philippine exporters. Vision-Mission Statement The vision of the company is to provide at least one Grovil wooden product to every household in the Philippines. Meanwhile, the mission of the company is to help the woodcraft industry in the Philippines to continue despite a lot of manufacturers have closed. Moreover, being one of the largest manufacturers in which the factory is located in the province, another mission of the company is to help the community around by providing jobs for the people as well as artisans. Lastly, the company is doing its efforts towards being more sustainable and environment friendly by using scraps of wood instead of cutting trees. Management and Culture Grovil has a factory located in the province of Laguna while the pick-up office is found in the city of Makati. Given that circumstance, the owners and/or top managers of the company is very democratic in managing the business. Since the productions and human resource aspects of the company are mostly based in the factory, the owners designated one person to handle these jobs with few assistants. On one hand, the pick-up office is the center for sales and finance, therefore; distribution (mostly pick-up) of products and collections are being done here. Although, everything else, managing whether

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it is productions, human resource, sales, or finance, must get through the general manager (or president) of the company. Organizational Structure Grovil has a direct approach in managing the company. As you can see in the organizational chart shown below, the owners obtain positions in the business and help in managing yet they are called “managers” not executives. This chart proves that the top management can be direct to the workers from time to time at their expense.

Resources The company has two main resources to operate in accordance to the nature of business: wood and machinery. For the wood resource, Grovil has several suppliers, who are legitimate business in the court, that provides official receipt (OR) and also smaller ones. One of the suppliers of the company for wood is Matimco. It is a business who makes furniture and flooring out of wood, and the scraps they have for every job order done will be sold to Grovil. However, there are also small businesspeople who sell scraps of wood

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to the company, too. They have no contract with the company; hence, they are one-time transaction only. Products and Services .Grovil Woodcraft specializes in producing small woodenwares such as kitchen wares, decoratives, Christmas items, trims, tabletops, wall decors, educational toys and games, and other small wooden things. Also, the company accepts customized wooden pieces-- the clients are encouraged to send their own designs to the company’s email and the workers would check if the desired product is attainable. Grovil Woodcraft also supplies customized wooden products to companies such Santi’s and Landmark, and Okada Manila. Moreover, the company uses wood, paper, and indigenous materials as their raw materials to produce their wooden outputs. Product Examples: Kitchen wares

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Decoratives

Christmas items

Educational Toys and Games

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Customized Pieces

Objectives of the Study This study aims to design an information system that can be used by the chosen company or a company with similar business or stature. Specifically, it aims to present the following: 1. Identify the departments in the company that need an information system.

2. Define the structure of the information system in terms of fields needed that coincide with the information gathered by the company.

3. Distinguish the challenges that the company will be facing during the transition of manual working environment to technological work environment.

Scope and Limitations The study will focus on analyzing the ongoing system of Grovil Woodcraft Philippines, Inc., in order to provide them with a better system design to help improve the business with its processes. This will include the employees of the company and their corresponding roles on the different business operations —the owner, management, assistants, and staff. Moreover, the different business operations will also be assessed as to how they are being done, to gather more 7

information on how they can be further developed. Aside from how the business is being operated, their current technological advancements are also evaluated, because they are necessary in the production of their woodcraft. In addition, the main office, the showroom, and the factory of the company are also to be observed, whether they have a bearing on the flow of the business operations or not.

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Detailed Results of the System Study Systems Flowchart

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Based on the interview the group had with the owners/managers of the company, shown above is the system flowchart (from placing an order to receiving the order). Since Grovil does not have a computerized system in place yet, everything is done manually. From placing an order, either online (Instagram, Facebook or email) or telephone call, down to the last task of the company which is to know whether the order is for pick-up or to be delivered (through shipping services of other companies). Moreover, the company still uses the traditional filing cabinet for compilations of the paperwork which can be saved or processed more efficiently (photos shown in the Problem Analysis part of the paper). Instead of processing manually, why not use and take advantage of a system that will make everything organized yet more efficient? Situational Assessment Company Grovil Woodcraft, as stated earlier in the paper, is known to be a company that started in exporting wooden items across different countries. Aside from that, Grovil Woodcraft also manufactures wooden furniture and fixtures that are being sold and displayed among various department stores nationwide, like Landmark, All Home and Santi’s Delicatessen. Some of the company’s customers are also well-known personalities like Kris Aquino, Marian Rivera and Regine Velasquez among others. In terms of the technological advancements in the company, they are not like the other companies who have a lot of technology used in their processes. The most modern items that are in the office are laptops and printers mainly used for emails and Facebook conversations between the members of the company and the owners and printing documents needed for transactions. Though they have a lot of machines for manufacturing their products, the researchers can say that they lack technological advancements in the company since most of their work processes are manual and handwritten. The company is also utilizing the boom of social media in their transactions. They use Facebook and Instagram in marketing their products and receiving inquiries from their customers. In the company, most of the employees are already middle-aged, ranging from mid30s to senior levels. Because of this, it may be a hindrance for the entrance of the system

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in the company since not all can easily adapt to the system. Despite this, the owners are still open for the entrance of the system to the company so that the future owners and employees of the company may utilize this. In line with this, the company aims to further improve their company’s processes by making a transition in their processes from manual handwritten computations and documentations to making a system that will house all their documentation and organize their orders so that there will be less mishaps between the different departments in the company. Customer The company, Grovil Woodcraft, caters to everyone all over the country who wants to buy quality wooden products. They supply to both small businesses and big companies. Landmark, Santi’s, Rustan’s, and Okada Manila are some of the big customers that they have. They provide hundreds and thousands of products to these companies in which would be sold in their respective businesses. In here, Grovil Woodcraft’s products are available and displayed in their stores. Moreover, small businesses buy their products to resell it. The owner mentioned that some of their customers ordered a huge amount of wooden products from them, then they will sell it in their own online stores. Gift curators also bought several boxes from them and they also posted it in their own accounts. Given the fact that they supply to different businesses, they also have individual customers. The company has an instagram and facebook which makes their products known to everyone. Most of the individuals who orders from them are purchasing boxes for packaging, customized products, and kitchenwares. Well-known artists such as Kris Aquino, Marian Rivera, and Solenn Heusaff etc. ordered wooden boxes from them. Also, people like to order products from them since they offer customization. The company can do any design as long as it is fit to their worker’s capabilities. For kitchen wares, customers like to have customized wooden kitchen materials that is why they order directly from them. As said by the owner, the company does not have a specific target customer for their products since their goal is to have every Filipino purchase at least one Grovil product.

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Every product that the company has is affordable and accessible to everyone which makes everyone a potential customer. Competitors Based on the interview that was conducted, Grovil Woodcraft faces heavy competition from suppliers in China which offers cheaper products. Although the company is considered to be one of the leading manufacturers and a key player in its industry, Grovil Woodcraft still experiences intense competition from both its direct and indirect competitors. The woodcraft industry in the Philippines is highly competitive, especially with the increasing demand for good packaging these days. The industry is only expected to grow throughout the years. The representative of Grovil Woodcraft Inc., Mrs. Roasa, mentioned only a few direct competitors in the interview and one of these is the Chinese supplier that offers cheaper products. Although unspecific with the name of this company, Grovil Woodcraft Inc. and its management considers this mystery Chinese company as its number one competitor it is most threatened with. This is heavily due to the fact that it stole Grovil Woodcraft Inc. from one of its biggest buyers which is SM Inc. Mrs. Roasa also mentioned Ikea as a potential competitor once its stores open up in the Philippines, which is expected to happen very soon. In the interview, Mrs. Roasa mentioned that Grovil Woodcraft Inc. considers local manufacturers from other provinces to be indirect competitors. With that, below is a list of local manufacturers that offer similar products from the company. These top three companies are JB Woodcraft, EDSA Woodcraft and Pat Pat Woodcraft. JB Woodcraft Inc.

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JB Woodcraft Inc. is one of its most aggressive competitors since it was established in 1972. It is located in Pampanga, Philippines and the company pioneered in the export of hand-carved wooden works and furniture in the country. EDSA Woodcraft

EDSA Woodcraft specializes in wood and carpentry located in Poblacion, Mandaluyong, Philippines. Its product variety ranges from wooden sofa beds, bunk beds, up to sofa beds with pull-out.

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Pat Pat Woodcraft

Pat Pat Woodcraft was established in May 2000 and is located in Baesa, Quezon City, Philippines. The company is currently occupying 2,000 square meters and has 25 skilled carpenters. They have a wide variety of product line that ranges from wooden baseboards to flooring. The company’s products are made-to-order and accepts custom designs, all kiln dried and sanded finished. Collaborators The company has its own factory and manufacture their own products. Despite that, they still need to gather raw materials, like wood and nails. According to the owners, they get their wood from “scrapers” or small-time people who get scraps of wood from those who supply wood in construction firms or those who are furniture makers. Some of these woods that they buy are scraps from the wooden crates that housed products that are imported in the Philippines. The owners also mentioned their initiative of supporting smalltime scrapers though there are also times that they buy from big-time suppliers. Most of the wood that they buy are recycled as they do not like cutting down trees for their use. Being able to manufacture these products under their own roof, they also singlehandedly sell these products, either retail or wholesale. They have products displayed on their factory in Sta. Cruz, Laguna and on their satellite office in Makati City that are ready to be bought by walk-in customers. The company also accepts special orders for a minimum quantity. 14

Notable celebrities in the country have ordered in bulk and retail from the company. The owners were able to disclose some details regarding their famous customers but limited it due to privacy reasons. Some of these celebrities are Ms. Kris Aquino, who ordered wooden boxes for her Himalayan Salt Lamp business, Ms. Marian Rivera, who ordered a wooden rocking horse for her daughter Zia, and Ms. Regine Velasquez, who ordered wooden craft gift boxes to be used for her Christmas gifts just recently. Grovil Woodcraft also engages in wholesale transactions with some of the Philippines’ biggest department stores, supplying wooden household items in Landmark, Robinson’s, Rustan’s, All Home, and Metro Gaisano. Also, they supply in known household/grocery stores like True Value and Shopwise. Currently, Santi’s Delicatessen orders wooden crates from them for their displays in their stores nationwide. Climate (or Context) a. Political and regulatory environment Grovil, being part of the wood craft industry, may suffer from both selective and total log ban imposed in the country. Even the company uses scrap of wood, nonetheless, these materials are still made from wood that came from a tree or log. Executive Order No. 23, signed by former president Benigno Aquino III in 2011, declares a moratorium on cutting trees in the natural and residual forests. Although we are already in the year 2019 or new administration has seated, the incumbent president Rodrigo Duterte has only ordered his Cabinet to study the effects of total log ban in the country. However, the company may or may not order or buys tons of log to be considered as their raw materials, but log ban could still be a factor for the business halt in the long-term. b. Economic environment In the recent news regarding the economic state of the country, inflation has decreased from the start of the year. The year started with a 4.4% inflation rate and since then the inflation rate has decreased gradually, where the current inflation rate stands at 1.3%. This was the complete 15

opposite of last year’s inflation rate movement where the highest inflation rate for the previous year reached 6.7% at the last quarter. As forecasted by Trading Economics, an online platform based in New York City in the United States that shows accurate historical data and economic data of the countries, the end of this year will entail a 1.80% inflation rate and in the coming years, the inflation rate will be at about 3% as forecasted by Statista. From this we can say that the Philippine economy is stable as of the moment and the purchasing power of the consumers are slowly regaining composure from the previous year’s all-time high for consumer goods. This means that consumers now have more money to spend for other things aside from their daily needs. Because of this, the company may see an opportunity to market their household items to the consumer. At the same time, since the research is presented during the latter part of the year, the high ...