Builders Cement Order and Inventory Management System Implementation

The report is based on the implementation of order and inventory management system in Builders Cement. The inventory management system improves the business performance of the company by closing the sales, benefits toward customer retention, reduction of holding costs, and flexibility. The paper also analyses the technical feasibility study, economic feasibility study and operation feasibility. The goal of order and inventory management system is that the construction materials are available at point of use. The total time required to complete the project plan is 2 months.

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Builders Cement Order and Inventory Management System Implementation
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Executive Summary
The report is based on the implementation of order and inventory management system in
Builders Cement. The inventory management system improves the business performance of
the company by closing the sales, benefits toward customer retention, reduction of holding
costs, and flexibility. Technology migration of inventory management system is done to
transfer the business process IT resources. The paper also analyses the technical feasibility
study, economic feasibility study and operation feasibility. The goal of order and inventory
management system is that the construction materials are available at point of use. The total
time required to complete the project plan is 2 months. The entire cost benefit of the plan is
increase into expected costs; therefore the project work is taken as inexpensively feasible.

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Table of Contents
1.0 Issue......................................................................................................................................3
2.0 Anticipated outcomes...........................................................................................................3
3.0 Problem definition................................................................................................................4
3.1 Problem statement............................................................................................................4
3.2 Organizational impact......................................................................................................5
4.0 Project overview...................................................................................................................6
4.1 Project description............................................................................................................6
4.2 Goals and objectives........................................................................................................7
4.3 Project performance, project assumptions, project constraints and major project
milestones...............................................................................................................................7
5.0 Cost benefit analysis............................................................................................................9
6.0 Approvals.............................................................................................................................9
References................................................................................................................................10

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1.0 Issue
The report is based on Builders Cement Order and Inventory Management System
Implementation. There is issue related to that the requisite materials needed into the
construction lay down yard, so that the materials are not delivered on right time to the crew
workers for the installation purpose.
2.0 Anticipated outcomes
The order and inventory management system is required for effective operations of
complex warehousing and distributing the environments. Inaccurate inventories results into
reduction of cost which makes the investment decisions. The anticipated outcomes of the
inventory management system are achieved of business efficiency, productivity into the
business operations (Ptak & Schragenheim, 2016). It results into reduction of inventory costs,
maximization of sales and profits. The system which is implemented into Builders Cement
are integrated the overall business process, automated the manual tasks and maintained a
customer satisfactions. The system wants efficiency to manage the stock levels such that the
business is cash flow positive. Simple analytics as well as reports help to observe the
products which are selling faster throughout sales channels (Laudon & Laudon, 2016). The
system helps to manage the sales channels for reduction of loss of sales; it is required to
restock the products into the business organization.
Inventory control is critical when it is required to reduce the carrying cost of holding
the project stock. Inventory management system les the entire company work with it as it is
making way from sales to customer fulfilments (Tat, Taleizadeh, & Esmaeili, 2015). The
inventory management system improves the business performance such as:
Closing the sales: The inventory management system is allowed with up-to-date
stock levels to available to the staffs in real time (Voronkova et al., 2017). It leads to better

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customer retention that is critical into modern marketplace where the customers have more
options.
Benefits towards customer retention: The operation manager should have proper
knowledge of the stock levels, which is best method to sell of items to the customers to have
it into the store (Sundar, Balaji, & Kumar, 2014). The system helps to analyze the historical
data to perform of accurate forecast for the future stock levels. There is prevention of costly
stock outs so that it causes customers to go other way. The manager should able to analyze
sales data, that will enable to find the patterns in demand help to drive of the project sales as
well as marketing strategies.
Reduction of holding costs: The other best anticipated outcomes of the order and
inventory management system are saving on inventory costs. The costs are extensive and it
will determine the bottom line when to keep the cost under control. It is included of finance
cost, warehouse rent, staff wages and security cost for the business (Fredendall & Hill, 2016).
When the system is assisted to make of proper forecasts, then it will avoid of over stocking,
and therefore overpaying on holding the costs.
Flexibility: The system is providing with ability to flexible as well as adapt of the
situations as the business is raised. There are large problems like incorrect shipments,
manufacturing problems as well as theft (Dumaiss et al., 2016). The system will provide
stronger visibility over the inventory. The tool is used to view the data related to inventory as
it permits to analyze as well as solve of the problems.
3.0 Problem definition
3.1 Problem statement
The research is carried out with maintenance inventory and order management
system. The cost to manage the inventory with carrying the cost of inventory is becoming a

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key focus point into the business as well as there is required to find methods for optimization
the inventory.
3.2 Organizational impact
The order and inventory management system has features of categorization of the
products which can migrate the products between various groups as well as sale channels. It
makes them easier to search by name, cost, data, supplier and other filters. This feature will
make sure about full stock control as it permits to forecast the demand and makes accurate
orders from the vendors (Eroshkin et al., 2017). The system handles the inventory, selling as
well as managing the customer relationships and also HR as single platform along with
accounts. When it comes to the customer services, then the company management are not
utilize requirements and demands of the customers. In terms of technology, migration is
referred to the process which is converted of data processing into various technologies.
Technology migration of inventory management system is done to transfer the business
process IT resources to new hardware infrastructure and various software platform to keep up
with current technologies to achieve of better business value (Wild, 2017). It is involved with
physical migration of the computing components where the older hardware can provide with
required level of the business performance and meet with the business requirements. The data
and application are required to migrate to new system and platform which can reside on same
hardware infrastructure as this system is being perceived to better than old one (Center,
Alliance, & Insurance, 2016). The migration is involved with data and software, as the move
is automated by use of migration software.
The feasibility of order and inventory management system is as follows:
Technical feasibility study: The system is technically feasible since it is not much
difficult to get needed resources for development as well as maintenance of the system. The

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resources are required to develop of software and maintenance of the system is available for
the organization to use of resources. The main consideration of this study is where the
software is to be implemented (Morton, Cambiaghi, & Radcliffe, 2015). The system analyze
evaluates technical merits of system on the business performance. Builders Cement is
facilitated of equipped with machines and software that is technically feasible.
Economic feasibility study: It is a method used to evaluate the effectiveness of
proposed system. The system is economically better along with increase into business
efficiency. The cost benefit analysis is to be performed in this case. It is a study of cost and
benefit to the savings which are required to expect from proposed system. As the
organization is implemented of the system with required of hardware, therefore the project is
economically feasible (Feng, McVay, & Skaife, 2014). Development of inventory application
is economically feasible as the organization is required not to spend much cost for
development of the system. After the development of proposed system, the business
organization is not required to invest more. Therefore, the system is feasible economically.
Operation feasibility: The estimate is required to determine how effort is done into
development of system included with the training to the end users. The computer
initialization is affected the turn over, transfer as well as employee status of job
(Chaiyawantakee et al., 2015). Additional efforts are required to make a training and
education to the users on new way of system.
4.0 Project overview
4.1 Project description
The paper is based on analysing the builder’s order and inventory management system
mainly into the construction industry. The materials management is a process to plan, execute
and control the activities into construction. The goal of order and inventory management

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system is that the construction materials are available at point of use when it is required. The
system ensures that materials are ordered into the store, generation of indent, selection of
vendor is carried out and materials are received at right time.
4.2 Goals and objectives
The order and inventory management system is used as effective system to move and
store the goods and related informational flow. The product sellers can access to the
technology driven software programs which can help into optimization of the inventory
control that is critical to achieve of the business success. Following are the project goals and
objectives of the inventory management system such as:
 To keep the products safe where it is protected against the theft
 To track and review the sales of company on daily basis as part of the inventory
management plan
 To manage the incorrect information displayed on the inventory database
4.3 Project performance, project assumptions, project constraints and major
project milestones
Based on the project performance, the inventory management system involves with
the procurement, data storage, and transport as well as construction methods. It is involved
with safety, productivity as well as schedule performance.
The project assumptions are based on:
1. The supply of the goods is satisfactory and the goods are to be purchased when it is
required.
2. The quality of the goods and services are to be purchased by concern is certain.
3. The prices of goods are to be stable which is resulted into stabilise the carrying costs.

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The project constraints are:
1. The required resources are not available, and then the time to deliver the project
work is increased. It results into increasing the project cost, as because when
alternative resources are expensive as required.
2. The quality analyst finds that the quality to deliver the goods is bad, and then
more resources are to be required. It results to increase of cost for additional
resources and efforts to fix the deliverables. It will increase time to deliver the
required goods (Disney et al., 2016).
3. When there is occurrence of project scope creep, it results into increase of time,
cost and resources. It will reduce the quality and increase of risks on delivery.
4. The project work is not completed on scheduled time as well as budget, which is
resulted into failure of entire project plan.
The project milestones are as follows:
Key Milestone Expected start date
Project kick off 12th August, 2018
Requirements of the business 25th August, 2018
Customization of the system 2nd September, 2018
System integration testing 14th September, 2018
User acceptance testing 27th September, 2018
Implementation of the system 3rd October, 2018
Project closure 12th October, 2018
From the project milestones, it is analyzed that the start date of this project is 12th
August and end date is 12th October, 2018. Therefore, total of 2 months are taken to complete

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the entire work for the implementation of order and inventory management system for
Builders Cement.
5.0 Cost benefit analysis
This project work is calculated as economic worth towards the community. The cost
benefit analysis for the implementation work of management system is compared with
benefits with entire cost to deliver the project. The overall benefits is demonstrated to
increase expected costs, therefore the project work is taken as economically viable.
6.0 Approvals
For the project plan to be approved, it is required to take approval from the project
manager, CEO and project sponsor.
Approved person Signature
CEO
Project Manager
Project Sponsor

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References
Center, P., Alliance, A. M. A., & Insurance, A. M. A. (2016). Practice Management. Safety.
Chaiyawantakee, S., Srimongkol, P., Bunsiri, P., Lanak, K., & Wilkison, P. B. (2015). U.S.
Patent Application No. 14/338,498.
Disney, S. M., Maltz, A., Wang, X., & Warburton, R. D. (2016). Inventory management for
stochastic lead times with order crossovers. European Journal of Operational
Research, 248(2), 473-486.
Dumais, S., Cutrell, E., Cadiz, J. J., Jancke, G., Sarin, R., & Robbins, D. C. (2016, January).
Stuff I've seen: a system for personal information retrieval and re-use. In ACM SIGIR
Forum (Vol. 49, No. 2, pp. 28-35). ACM.
Eroshkin, S. Y., Kameneva, N., Kovkov, D., & Sukhorukov, A. (2017). Conceptual system in
the modern information management. Procedia Computer Science, 103, 609-612.
Feng, M., Li, C., McVay, S. E., & Skaife, H. (2014). Does ineffective internal control over
financial reporting affect a firm's operations? Evidence from firms' inventory
management. The Accounting Review, 90(2), 529-557.
Fredendall, L. D., & Hill, E. (2016). Basics of supply chain management. CRC Press.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Morton, J., Cambiaghi, R., & Radcliffe, N. (2015). Inventory management requires an end-
to-end approach: our consulting team defines the key concepts of inventory
management and elaborate on the decisions and cross-functional collaboration
required to be more effective. Logistics management (Highlands Ranch, Colo.: 2002).

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Ptak, C. A., & Schragenheim, E. (2016). ERP: tools, techniques, and applications for
integrating the supply chain. Crc Press.
Sundar, R., Balaji, A. N., & Kumar, R. S. (2014). A review on lean manufacturing
implementation techniques. Procedia Engineering, 97, 1875-1885.
Tat, R., Taleizadeh, A. A., & Esmaeili, M. (2015). Developing economic order quantity
model for non-instantaneous deteriorating items in vendor-managed inventory (VMI)
system. International Journal of Systems Science, 46(7), 1257-1268.
Voronkova, O. V., Kurochkina, A. A., Firova, I. P., & Bikezina, T. V. (2017).
Implementation of an information management system for industrial enterprise
resource planning. Revista ESPACIOS, 38(49).
Wild, T. (2017). Best practice in inventory management. Routledge.