March 28 - Caproj 1 - Binalot Fiesta Foods Inc PDF

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Binalot Fiesta Foods Inc.

A Computer Application Project Proposal Presented to the Faculty of the School of Management and Information Technology – Computer Applications

De La Salle-College of Saint Benilde

In Partial fulfillment of the Requirement of the curriculum Computer Applications Project

Submitted By: Alvin Joseph S. Entereso Mark Joseph A. Gonzales Ijon Irving T. Kaw

Ms. Elsa Sabularse Panel Chair

Mr. Louie Lintao Panel Member

Mr. Joel Dizon Thesis Adviser

Mr. Ronald Bunyi Panel Member

Table of Contents Preface........................................................................................................................................... 3 Acknowledgements......................................................................................................................... 4 Executive Summary........................................................................................................................ 5 1.1. Company Background................................................................................................... 7 1.1.1. Company Profile.................................................................................................... 7 1.1.2. Company History...................................................................................................7 1.1.3. Vision Statement................................................................................................... 7 1.1.4. Mission Statement.................................................................................................8 1.1.5. Products and Services..........................................................................................8 1.1.6. Organizational Chart.............................................................................................9 1.1.6.1.1. Organizational Chart as of February 27, 2007.............................................9 1.1.6.1.2. Organizational Structure..............................................................................9 1.1.7. Competitor Profiles................................................Error! Bookmark not defined. 1.2. Industry Analysis.......................................................................................................... 12 1.2.1. Industry Definition and Scanning.........................................................................12 1.2.1.1. General Overview.......................................................................................12 1.2.1.2. Macro-Environmental Analysis...................................................................16 1.2.2. Five Competitive Forces Analysis.......................................................................18 1.2.2.1. Bargaining Power of Suppliers (Low).........................................................18 1.2.2.2. Bargaining Power of Customers.................................................................20 1.2.2.3. Rivalry of Competitors (High)......................................................................20 1.2.2.4. Threat of New Entrants (High)....................................................................21 1.2.2.5. Threat of Substitutes (High)........................................................................21 1.2.3. Identification of Opportunities and Threats..........................................................22 1.2.4. Critical Success Factors......................................................................................23 1.3. Internal Analysis...........................................................................................................26 1.3.1. Value-Chain Analysis..........................................................................................26 1.3.1.1. Inbound Logistics........................................................................................27 1.3.1.2. Operations..................................................................................................28 1.3.1.3. Outbound Logistics.....................................................................................30 1.3.1.4. Services......................................................................................................32 1.3.1.5. Sales and Marketing...................................................................................34 1.3.1.6. Administration and Management................................................................36 1.3.1.7. Human Resource........................................................................................37 1.3.1.8. Technology................................................................................................. 39 1.3.1.9. Procurement...............................................................................................40 1.3.2. Identification of Strengths and Weaknesses.......................................................43 1.3.3. IT Resources and Inventory................................................................................44 1.3.3.1. Software or Systems Inventory...................................................................44 1.3.3.2. Hardware Inventory....................................................................................45 1.3.3.3. Existing Network Diagram..........................................................................45 1.4. Analysis Conclusions...................................................................................................45 1.4.1. TOWS Analysis...................................................................................................45 1.4.2. Identified Strategic Business Problems, Issues and Opportunities.....................47 I. IT/IS Project Feasibility Analysis..........................................................................................50 2.1. IS Project Options........................................................................................................ 50 2.1.1. IS Option 1: Binalot Inventory Allotment and Outlet Tracking System.................51 2.1.1.1. Description..................................................................................................51 2.1.1.2. Problems Addressed..................................................................................52 2.1.1.3. Product Positioning Statement – Binalot Inventory Allotment and Outlet Tracking System.........................................................................................55 2.1.1.4. Functionalities.............................................................................................56 2.1.1.5. Features..................................................................................................... 56 2.1.1.6. Costs and Benefits Projection.....................................................................57 2.1.2. IS Option 2: Employee Information and Payroll System......................................63

2.1.2.1. 2.1.2.2. 2.1.2.3.

Description..................................................................................................63 Problems Addressed..................................................................................63 Product Positioning Statement – Employee Information and Payroll System …………………………………………………………………………………….66 2.1.2.4. Functionalities.............................................................................................67 2.1.2.5. Features..................................................................................................... 67 2.1.2.6. Costs and Benefits Projection.....................................................................68 2.1.3. IS Option 3: Delivery System with Loyalty Program............................................74 2.1.3.1. Description..................................................................................................74 2.1.3.2. Problems Addressed..................................................................................74 2.1.3.3. Product Positioning Statement – Delivery System with Loyalty Program.. .76 2.1.3.4. Functionalities.............................................................................................77 2.1.3.5. Features..................................................................................................... 77 2.1.3.6. Costs and Benefits Projection.....................................................................78 2.2. Project Selection Criteria.............................................................................................82 2.2.1. Feasibility (40%)..................................................................................................82 2.2.1.1. Technical Feasibility (5%)...........................................................................82 2.2.1.2. Operational Feasibility (10%)......................................................................84 2.2.1.3. Economic Feasibility (25%)........................................................................86 2.2.2. Financial Payback (20%)....................................................................................87 2.2.3. Beneficiaries (15%)............................................................................................. 88 2.2.3.1. Internal (10%).............................................................................................88 2.2.3.2. External (5%)..............................................................................................88 2.2.4. Alignment with Mission and Vision (10%)............................................................90 2.2.5. Project Risk Factors (15%).................................................................................91 2.3. Recommendations....................................................................................................... 92 2.3.1. Scoring Model..................................................................................................... 92 2.3.2. Other Recommendations....................................................................................95 II. Detailed System Design.......................................................................................................96 3.1. Proposed System Scope and Limitations....................................................................96 3.2. Process Flow / Model Diagram....................................................................................99 3.3. IT Infrastructure Blueprint..........................................................................................106 3.3.1. Software Requirements.....................................................................................106 3.3.2. Hardware Requirements...................................................................................108 3.3.3. Network Diagrams............................................................................................. 110 3.3.4. Database Design and Management..................................................................113 3.3.4.1. Table Relationships...................................................................................113 3.3.4.2. Database Structure...................................................................................114 3.4. Implementation Plans................................................................................................116 3.4.1. Project Development and Implementation Timetable........................................116 3.4.2. Disaster-Recovery and Back-up Plans..............................................................121 3.4.3. Maintenance and Operations Plan....................................................................122 3.5. Business Plan Generation.........................................................................................122 3.5.1. Quantitative Benefits.........................................................................................122 3.5.2. Qualitative Benefits...........................................................................................124 Appendices................................................................................................................................. 126 Appendix A – Charts and Tables Appendix B – Letters for Research Appendix C – Related Articles and Research Documents Appendix D – Binalot Articles of Incorporation Appendix E – Binalot Peripherals and Pictures Appendix F – Price Lists Appendix G – Supporting Calculations, Diagrams, and Notes

A Recommendation On the Information System Needs of Binalot Fiesta Foods Inc. Team Name: KGE

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Preface This thesis was created to provide an information system proposal for Binalot Fiesta Food Incorporated. This thesis was made for future reference on the inner workings of Binalot and the Quick Service Restaurant Service. This thesis emphasizes on creating a system of Binalot using of Information Systems that will improve the processes of Binalot and improve the quality of life for both employees and customers alike. This book emphasizes on the study of how Human Resource Information System, Supply Chain Management System and a Delivery System with Loyalty Program will help a Quick Service Restaurant in improving their operations and their processes.

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De La Salle-College of Saint Benilde Bachelor of Science in Business Administration Major in Computer Applications

A Recommendation On the Information System Needs of Binalot Fiesta Foods Inc. Team Name: KGE

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Acknowledgements Our foremost thanks belong to the God Almighty, everything is possible in Him. We would like to extend our gratitude to the people who helped us along the way. If it wasn’t for them, we will have a hard time finishing our tasks.

Therefore, it will be proper to give

recognition for the time and patience they have given us to lend hands and ears. First of all, we would like to thank Mr. Benji for referring us to Binalot Fiesta Foods Inc. We also would like to thank our contact person, Mr. Basil Soriao, General Manager of Binalot Fiesta Foods Inc. Both of them put aside their busy schedules and allotted a portion of their time to accommodate us. The information they have given us played a huge role in our research. We also extend our gratitude to Mr. Rommel Juan, President and CEO of Binalot Fiesta Foods Inc., for taking part in the interview. He gave us words of encouragement to push our research into reality. Binalot Fiesta Foods Inc. became very accommodating to us and we appreciate their openness in being our company of research. We also thank the professors for teaching us techniques for our thesis. Foremost, we thank our adviser Mr. Joel “The Thesis Mastah” Dizon for giving us words of wisdom and patience to transform our wrong inputs and make it into a relative and informative data. Moreover, we appreciate the motivation he has given us, raising our “happiness level” as he would put it. We give credit to Mr. Oliver Liwanag for helping us in our Cost Benefit Analysis. He gave us information which made us feel secure about our CBA. We would also like to thank Ms. Quibuyen for teaching us relevant techniques in finance which supported our Cost Benefit Analysis. We thank Mrs. Kaw for providing us good food during our stay in their house to complete our thesis. We also thank San Miguel Beer for giving “the ultimate brain juice.” Lastly, we extend our gratitude to our fellow CA students. In times of hardship, we stand together to face the challenges. We give our big thanks to John Michael “the thesis veteran” So, Computer Link, and our fellow thesis mates. Our success is your success as well.

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De La Salle-College of Saint Benilde Bachelor of Science in Business Administration Major in Computer Applications

A Recommendation On the Information System Needs of Binalot Fiesta Foods Inc. Team Name: KGE

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Executive Summary The company of research is Binalot Fiesta Foods Inc. Their head office is located at 3841 Daffodil Street, Sun Valley Subdivision, Paranaque City. They belong to the Quick Service Restaurant (QSR) Industry. They have an employee count of 50 in the head office and commissary. In the restaurants, they have an average of 3 employees. The current president of Binalot Fiesta Foods Inc. is Mr. Rommel Juan. In 2004, Binalot started to open itself to franchising. Currently, they have 30 branches nationwide and they have plans to open 30 more this year. Binalot’s target market usually involves white collar workers in urban areas. After analyzing the company by identifying threats and opportunities with the use of Macro-Environmental Analysis and the Five Forces Model, and strengths and weaknesses with the use of Critical Success Factors, Value-Chain Analysis, and Strategy Identification, we are able to determine what problems the company needs to address, the strengths to sharpen, the threats to counter, and the weaknesses to cover. Due to time constraints, we will focus more on covering the weaknesses of the company along with the strategy they want to employ. The first problem of the company is inaccurate inventory management and slow dispatch of products for delivery. These problems cause opportunity loss in sales and wastage of raw materials. The second problem we uncovered is concerned with Human Resource Management. They don’t have an established H.R. system from recruitment until training and performance appraisal. This could result to low quality of workers which means low productivity and efficiency. Moreover, they outsource their accounting process for payroll which is expensive for the company. The third problem we uncovered is about the limited sales opportunity they have. Currently, Binalot only caters to customers at the malls and office buildings. This could lead to small growth in sales and profitability. Moreover, their products have an off-peak sales time. Binalot should start offering their products to a wider array of customers.

From the cost benefit analysis conducted and the scoring model created, we are able to gauge the benefits, feasibility, and impact of each system we proposed to

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De La Salle-College of Saint Benilde Bachelor of Science in Business Administration Major in Computer Applications

A Recommendation On the Information System Needs of Binalot Fiesta Foods Inc. Team Name: KGE

___________________________________________________________________________ solve their problems. From the meeting we conducted with Sir Basil Soriao, General Manager of Binalot, scoring of each system was conducted and it was decided that we implement the Binalot Inventory Allotment and Outlet Tracking System, also known as the BINALOT System, a system rooted in supply chain management. The fact that the General Manager of the company favored the BINALOT System due to its impact justified the recommendation of the system. Moreover, the benefits derived from the system are as favorable as the two other systems proposed. For implementing the system, we plan to develop the program for a period of 42 days while the implementation phase will take 23 days. The conversion approach used will be the parallel approach to ensure that there will be a back up in implementing the new system in case the new system crashes. Moreover, database replication technology will be used to ensure data back up and a back up power supply to ensure data replication in case of power failure. The system has a positive Net Present Value based from comparing the NPV of inflows against the total cost of investment from the system. Moreover, the revenues from the system will be able to cover the investment in about 67 days. In a financial point of view, the project is acceptable. In a qualitative point of view, the implementation of the system will help lessen food spoilage, pilferage, and inventory cost. Moreover, the implementation of the system will make ord...