Project ProposalROMOR Electronics

Prepared forMr. Noah B. Koontz

Prepared byMatthew Rose

Lindsey Morris

Jacob Opel

Brandon Raymer

Preston Overholser

On

March 24, 2015

EXECUTIVE SUMMARYJacob Opel

The World is Progressing

ROMOR Electronics has been an excellent choice for consumers to purchase their electronic needs. We have been a reliable and trusted retailer of electronic goods for decades. But as the decades progress so does the world around us. We must change and evolve in order to stay current with not only our customers, but our competitors as well. ROMOR electronics must acknowledge that some of its current business practices are not as progressive as it could be.

We are Losing Money

Unfortunate as it is, the current state of how the business handles transactions as a whole are not optimal. Purchase orders are taking 4 weeks to be filled, while causing severe delays in production. Also due to the more rudimentary handling of paperwork, discounts on invoice terms are being missed, which could save the company money as well.

The Remedy

By providing a Client/Server network for the company, we can drastically increase productivity. We can lower the time it takes for Purchase orders to be processed, and filed. Some services of the business can be cut out completely and automated by software, saving more time and money. A modern network can handle more traffic from consumers, thus creating more opportunities to grow as a business. With the implementation of this network ROMOR electronics could pursue online e-commerce. I believe it is in the best interest of this company to approve these recommendations, in order to ensure ROMOR electronics has a thriving future ahead.

2

RESULTS OF SYSTEM STUDYCUSTOM SYSTEM

Our business is an assembler of electrical parts. The problem associated with our current system effects the delivery of these parts. This is also effecting our production cost. The purchasing orders are costing us seventy-five dollars to generate and require as many as four weeks to fill due partially to the slow mail delivery. The other cause is due to a lack of contractual arrangements with vendors for material deliveries. The slow deliveries are causing production delays and downtime. Not knowing which vendors are creating these delays and downtimes disables us from discontinuing business and going forward with a different vendor. We are also unable to take advantage of the invoice discounts for quick payment due to the time required to verify delivery of materials and the transfer of paperwork.

3

SYSTEM ALTERNATIVESCURRENT SYSTEM

The current system uses dumb terminals to communicate with a mainframe for input and output of information. This system is not conducive to automated purchase order generation or automated invoice processing. The system should be able to be either manual or automated and this system would not work in that case. The terminals cannot be used alone as they have no processing capabilities. Because this system is outdated, it will not function correctly with the new inventory system.

PRE-PACKAGED SYSTEM

A pre-packaged system would require less capital upfront and would require less time to implement it. The proven reliability and performance of a pre-packaged system would reduce the need for numerous IT staff due to the upgrades being handled by the vendor. However, for our purposes, the system would need to be customized in order to fit our needs. This would cause an increase in the cost whether the vendor handles the customizations or additional IT team members do so. If our IT team does the customization, we run the risk of them being unaware of the system and needing additional training. We also run the risk of not being able to have vendor supplied upgrades since many vendors do not offer upgrades once they are customized. This would increase the cost of the system and more IT employees.

CUSTOM-DESIGNED SYSTEM

The custom-designed system would be a client/server based system where the server would run Windows 2012 R2. This will allow us to use current technologies to be more competitive and efficient. Windows 2012 R2 would have the added benefit of cloud based computing, which would give us a competitive edge and would save resources and reduce the cost of software and licensing fees. It would also allow for ease of access throughout all of the facilities. The initial cost of a custom-designed system is more initially, but there would be less cost with maintenance and licensing fees. Instead of having unnecessary features included, like in a prepackaged system, only the features that are needed would be added, saving cost. While the initial cost of a custom-designed system may seem more expensive, the savings over time are worth the initial investment.

4

RECOMMENDATIONSWith the current system in place, terminals are using inferior communication for input and output of information. This system is not cost effective for the business. Also being outdated the current structure, will run into compatibility issues with the newly designed system. A custom-designed system is highly recommended even though the initial cost will be high, the return of investment, and benefits will outweigh any negative effects.. The custom-designed system, would allow productivity to increase, save resources and provide scalability. A prepackaged system, would some have features that are not needed saving. It is in the best interest of ROMOR Electronics to use a Custom designed system for maximum ROI.

5

SUMMARYTEAMMATE (PRESTON OVERHOLSER) DID NOT COMPLETE THIS ASSIGNED PORTION

6

APPENDIXExecutive Summary.....................................................................................................................................2

Results of System Study...............................................................................................................................3

Custom System...............................................................................................................................3

System Alternatives ....................................................................................................................................4

Current Alternatives.......................................................................................................................4

Custom Designed System................................................................................................................4

Pre-Packaged System......................................................................................................................4

Recommendations.......................................................................................................................................5

Summary.....................................................................................................................................................6

Appendix......................................................................................................................................................7

Context Diagram..........................................................................................................................................8

Context Diagram Narrative and Legend..........................................................................................9

Data Flow Diagram Level 0........................................................................................................................10

Level 0 Diagram Narrative and Legend.........................................................................................11

Data Flow Diagram Level 1........................................................................................................................12

Level 1 Diagram Narrative and Legend.........................................................................................13

Data Flow Diagram Level 2........................................................................................................................14

Level 2 Diagram Narrative and Legend.........................................................................................15

Entity Relationship Diagram......................................................................................................................16

Entity Relationship Diagram Narrative and Legend......................................................................17

Network Decomposition Diagram.............................................................................................................18

Network Decomposition Diagram Narrative and Legend.............................................................19

Hub Network Connectivity Diagram..........................................................................................................20

Hub Network Connectivity Diagram Narrative and Legend..........................................................21

GANTT Chart..............................................................................................................................................22

GANTT Chart Narrative.................................................................................................................23

Hardware Cost Projections........................................................................................................................24

7

CONTEXT DIAGRAM

8

CONTEXT DIAGRAM NARRATIVE

When customer makes order, it is sent to the order system. The order is then sent to the production facility. In order for the production facility to fulfill the order, they must order parts from inventory. Inventory then pulls the parts and sends them to production. When they pull the parts, it lowers the inventory and alerts them to order more parts. An order for the vendor is then placed and once the vendor fulfills the order, it is sent to invoice for approval. When invoice approves the order as received, they then send payment to vendor.

LEGEND

9

DATA FLOW DIAGRAMDIAGRAM LEVEL 0

10

DATA FLOW DIAGRAMDIAGRAM LEVEL 0

NARRATIVE

Diagram shows the order going to the production facility then the facility ordering parts from inventory. Inventory has to send the parts to facility then deduct the parts from the inventory. When the inventory gets so low, they should order more parts from vendor. When the vendor delivers the parts, they should be added to the inventory.

LEGEND

11

DATA FLOW DIAGRAMDIAGRAM LEVEL 1

12

DATA FLOW DIAGRAMDIAGRAM LEVEL 1

NARRATIVE

Diagram shows the process involved in getting the needed parts from inventory to assemble the order. The facility creates a list of part numbers and amount for inventory. Inventory collects the parts and sends them to the facility. After they collect the parts, they deduct the amount of parts from inventory. When parts are low they order more from vendor.

LEGEND

13

DATA FLOW DIAGRAMDIAGRAM LEVEL 2

14

DATA FLOW DIAGRAMDIAGRAM LEVEL 2

NARRATIVE

Diagram shows the process involved in getting more parts when the inventory gets low. When the parts are pulled, it lowers the quantity for that part number. The inventory recognizes that it has a low quantity. The supplier for that part is found and an order is created. The order is then sent to the vendor. When the vendor fulfills the order, the quantity of parts is increased and the inventory is satisfied.

LEGEND

15

ENTITY-RELATIONSHIP DIAGRAM

16

ENITITY-RELATIONSHIP DIAGRAMNARRATIVE

One customer puts in one or many orders to sales. Sales sends zero, one, or many orders to one production facility. The one production facility orders parts from the one inventory. The one inventory sends zero, one, or many parts to the one production facility. When they deduct the parts from inventory the one inventory sends one or many orders to one or many vendors. One or many vendors send one or many parts to inventory. Zero, one, or many vendors also send zero or one invoices to invoice.

LEGEND

17

NETWORK DECOMPOSITION DIAGRAM

18

NETWORK DECOMPOSITION DIAGRAMNARRATIVE

This is a level down diagram, which breaks down the company structure. The diagram begins at the top corporate level and levels down to the employees. Included in the diagram are the facilities and office locations. The amount of each type of employee at each location is also included in the diagram.

LEGEND

19

HUB NETWORK CONNECTIVITY DIAGRAM

20

HUB NETWORK CONNECTIVITY DIAGRAMNARRATIVE

Since our company has locations across the United States I feel that using T1 would be the most beneficial for speed. I have also looked at getting new computers for employees and setting up a server at each location. Purchasing new computers would bring a cost of $53,900. Purchasing and installing a server at each location would cost $12,000. Lastly, the internet will cost $1,000 per month.

LEGEND

21

GANTT CHART

22

GANTT CHART NARRATIVE

The GANTT Chart is a series of tasks with dates that they are to be completed. Starting off we need to understand what the exact problem is the company is facing. We will identify the problem and perform fact-finding before deciding on what steps to take further. We will then discuss the options for new hardware and upgrades will benefit the company. Once the new hardware is setup we will train the employees with their new system. We will monitor how the new system is performing and make changes as necessary.

23

HARDWARE COST PROJECTIONSThe hardware cost projections include the cost to upgrade PCs, add a server at each location, installations, and monthly costs, such as the ISP and the utility cost to run the PCs and servers. The Los Angeles branch has a total of three employees, the St. Louis branch has a total of four employees, and the Baltimore branch has a total of 5 employees. The production facility has 256 hourly employees, 38 clerical employees, and 22 salaried employees. At each of the branches, one PC will be supplied for each employee as well as one server. The production facility will be supplied with 50 PCs for the clerical and salaried employees, and 20 for the hourly employees. Each PC will cost $1,000 bringing the cost to $82,000. The cost of installation for all three branches is $450 and the cabling totals are $375. The cost of installation for the production facility is $500 and the cabling is $1,750. The total cost of all four servers is $40,000. The monthly charges for the ISP is $1,900 for all four locations. The utility costs per year for all four locations is $5440.

24