Carpal Rice Mill, owned by Mann Kooky and veronica Salvador, has a rice milling system that executes the process of effectively removing the husk and the bran layers to produce the white rice, having the standards of being thoroughly oiled and completely edible to serve the best quality for the business’ customers. The rice mill has been operating for 24 years, as It was established In the year 1990. The rice mill is personally managed by its owner, Veronica Salvador, who is very hands-on with the business.
It is currently located at San Jose City, Uneven Juice. Tracing back from Its conception and the current time, the company has around 300 employees. It is a fact that Uneven Juice is the “Rice Bowl of the Philippines” which can be concluded that large number of rice mills are located there. The estimate number of ice mills located in San Jose City is around 20, and one of them is V. S Gorilla Rice Mill. In the 24 years of Its operation, the business still uses manual system In recording and checking of different kinds of data.
The owners are aware of the benefits of technology and how it can help to ease the entire processes of the business. But even though the company has funds, and at the same time aware of the technology benefits, they are still unsure on what system to use which will fit In the organizations’ needs and help to solve the minor problems that are happening within he company. The case study presents the various processes of a business under the agricultural industry, particularly rice milling, the V. S. Gorilla Rice Mill.
The products of the company are the different kinds of well-milled rice, delivered to enterprises nationwide. It includes the details regarding the people behind the business, the owners, employees, and what they do. The study also covers the problems occurring in the business operations across different departments, as well as a deeper analysis and determining the sources of the problems. The group proposes solution, or lotion’s depending on how many are needed, to the problems identified, which includes the concrete steps and plans regarding how to implement the solution’s.
The problems encountered by the company are the following: difficulty in accessing real-time data regarding the inventory, delayed decision-making process, employee attendance tracking, and financial updates. These problems all narrow down to the lack of an automated, whole system along with other factors affecting them. The manual system that the company implemented have caused struggles with receiving real-time data because it takes longer than usual and the owners are not able to chive the necessary updates and if there are problems they are not addressed as quickly as possible.
It affects, in return, the decision-making process of the company, since there is a lack of information, the process is delayed. The attendance tracking of employees is also not efficient, only manual, since their tracking system can be neglected easily by dishonest employees. The employee in charge is not able to record the time out of employees successfully, as they try to escape, so that the employee and the owners would not know whether an employee worked under time or not.
The problems with finance can generate more errors than what is accepted, very time-consuming and pressured due to the manual recording of financial transactions, specifically by writing in papers or notebooks, and then present to the managers or owners the necessary updates, as well as handling the payroll. In light of the problems presented, alternatives are suggested to be considered by the company for the increased efficiency of the business.
The first alternative is to develop an in-house information system for the company, which is centralized and will particularly target the inventory monitoring problem and aid in generating uncial reports for the company. The second alternative is to consider outsourcing the creation and implementation of the IS system. Lastly, the company may opt to purchase a commercial-off-the-shelf system for faster implementation and integration to the processes of the company.
As an addition to the information system alternatives, the group proposed a solution for the attendance tracking, which is the utilization of biometrics. The biometrics will be connected to the system so the attendance will be recorded accurately, immediately and will be more convenient to The group recommends the first alternative, implementing an in-house system for handling the operations of the business. It includes developing an IT team to overlook the future operations of the information system and to fix the necessary errors that may happen.
It is highly-recommended since it will specifically target the needs and existing problems of the company, as well as its cost effectiveness as Analysis The first step in the business process is the ordering of rice straws (play) from local farmers during harvest seasons. The rice straws are then dried under the sun and recessed using the machineries owned by the company. Once the rice is processed, they are bagged and stored in the warehouse. Lastly, they are distributed to various enterprises such as Evergreen Inc. Paschal Gorilla Cavity; Amelia Gorilla Passing City; Bataan 2020 Inc. (Bataan); Stocktaking (Sat. Maria, Vulcan); Reliance Apparel (Cavity); Lucky 4 (Lips City, Battings). In this company, the manager, Veronica Salvador, acts as the president. She oversees the 3 main departments which consists of secretaries, classifiers, and cashiers. The secretaries are responsible for the attendance of the employees. Classifiers are those who classify rice such as Dominator, Sandbagging, and the like.
Cashiers act as the finance department of the company; they handle all transactions and financial matters. Inflows and outflows of money go through the cashiers. The purchasing and maintenance departments report to the secretaries and cashiers. The purchasing team is in charge of ordering the rice straws to be processed from the farmers. On the other hand, the maintenance team is in charge of making sure the equipments and machineries used for processing rice straws are constantly checked and evaluated. Under the maintenance department are sanitation and security.
They make sure that the rice to be refined is safe for human consumption, and that the processes run smoothly with no external interruptions, respectively. Lastly, the production department acts as an independent entity, but also reports to the manager . Under this department are the processing, storing and distribution teams, who cooperate with one another. These three teams make sure that strong communication is intact since the output of one team is a prior requirement of the others. SOOT Analysts The internal factors within an organization (e. Employees, management, processing system) are the most important factors in considering whether the company will meet its goals and objectives since these factors do the processes to attain the purpose of the organization. It is stated by Alfred Marshall that the most valuable of all capital is that invested in human beings. Thus, it can be said that when an organization invests on training their employees, they will minimize costs on damaged products produced by unskilled or unqualified employee. Consequently, they will maximize profit knowing that employees are effective and efficient in their job.
Also, management styles play an important role. One major strength of the company will be their loyal employees who have been with them from the start. Judging that they have loyal employees, we can conclude that the executive management practices a multi-stream management. In effect of the harmonious relationship the top management and workers have, they were able to establish the image of the company for 24 years. Consequently to this, they have loyal customers that purchase their products on a regularly basis.
However, since the company’s employees are large in number, some employees get lazy where they think it is okay ill be the lack of automation system in the organization that gives rise to the problem of V. S Gorilla Rice Mill. As for the external factors, they can either pose as an opportunity or threat. It is not a secret today that every business is open for innovation and is investing in technology to replace human capital with artificial intelligence. It is no doubt that employees are important but they are more prone to human error unlike machines. Thus, various opportunities may arise when the system of V.
S Gorilla Rice Mill will be automated. One major opportunity that may rise when the organization paved way to innovation would be the precise inventory system making it impossible for the number of sacks recorded to vary. Automation of the system will also maximize the productivity of the employees since they will be monitored precisely as possible. Lastly, automated system will as much as possible avoid discrepancies in the financial statements. Of course, threats of competition is obvious since there are a lot of potential suppliers of rice in San Jose City, Uneven Each.
Problem Definition and History For the past 24 years, Veronica Salvador, one of the founders of V. S. Gorilla Rice Mill, has been personally managing the business and overseeing the department heads; since then, the system has remained manual- from the ordering of rice straws from farmers, and taking employee attendance to inventory management, and delivering of finished goods to various suppliers. The problem with not having a real-time data in a business is that information cannot be immediately delivered, which results in time wastage.
In a rice milling business, it is vital for every step in the processing of rice to be tracked and navigated accordingly since many of the tasks are requisites to other tasks. V. S. Gorilla Rice Mill, being a wholesale distributor of refined rice to various establishments (rice retailers), cannot afford to delay its operations from processing, packing and storing to transporting and delivering. Decision-making can also be delayed because of non-real time information. This affects the organization along with its partners.
For example: Warehouse staff members are more prone to errors when decisions are made slower than expected. They could be sending more sacks of rice outside the storage gates when they should be sending less given real-time information. Delivery costs are also higher given a non-real time situation when drivers travel greater distances, when they can be minimized. With regards to employee attendance, the employees’ time in and time out is checked manually by physically showing themselves to the secretary assigned for checking their attendance.
The problem with manual checking is that the process is tedious and tricky for the company. Since the company has the policy of “no work, no pay’, the timing in of the employees would be no problem for the company since employees would have the initiative to show themselves, but the real problem is that he company is very lenient to its employees, except the secretaries, so some employees would not dare anymore to show themselves to the secretary when timing out, so when they undermine, the secretary assigned would not know.
Despite the employees’ undermine, the salary they get is still the same; no salary deductions are given. This benefits the employees, but definitely not the company since their hours of some employees. The finance secretary is the one in charge of handling money matters. All of these are done manually which can be inferred that she has many notebooks/ files with her, for example for sales, payroll and payments, for cording and checking of the data. The process is very tedious since handling money should be done critically and correctly and knowing that she handles everything with money is quite confusing.
Since some employees earn their salary on a daily basis, some on weekly basis and others are on a monthly basis, the records should constantly be updated. Her records should be updated daily; requiring several hours if manually done. Moreover, it is prone to human errors. Problem Analysis and Impact The problems occur due to the company’s lack of a whole system governing their business’ processes. There are two warehouses, one where the managers are and another for the operations.
Since every step of the rice processing has to be tracked, it is difficult for the managers to acquire that kind of information quickly, considering that there are a lot of steps to complete the process. They either have to go to the other warehouse or ask the details via text message or call. Going to the other warehouse will be time-consuming, although it is near, since their work in the main warehouse will be left to accommodate the acquisition of information from the other and to personally observe the operations.
Asking the details via the use of electrification devices is also not enough, because the details sent may not be elaborated thoroughly or it will be harder for them to explain the situation as compared to having a consolidated formal report or update with the necessary details. The source of the problem regarding the employee attendance tracking besides the lack of an automated system governing the process, is the planning process.
There are loopholes on the planning process of the company, wherein they were not able to prepare the necessary and immediate solutions for the problems if they have a manual system in recording the attendance. They were not able to consider the installation of time card machines or biometrics to help alleviate the issue. Without the automated system, the errors are more frequent and difficult to handle. The finance secretary is having a hard time on recording financial documents because the operations of the department require a lot of papers if it was done manually.
Also, human errors can also be considered because since it is only manual, there is no system that will check the process for standardizing purposes and the accuracy of the computation. The lack of time to work can also be a problem, because he workload is getting higher because her work is supposed to be simplified with the an automated process, however, she still writes on her records to update them which is time-consuming, high-pressure due to the need of the company to have real-time data, and requires a great deal of effort.
In summary, the impact of the problems regarding the time are the incapability of minimization of effectiveness and efficiency of the workers that will affect the number of products they produce that will be available for sale. In addition to the tedious business process the organization have, they are not capable of maximizing scores pose the risk of human error and when committed, might entail loss for the company. Alternatives After the group analyzed the problem they decided to propose a centralized system that the company can use in order to solve their current problems.
The first problem that would be accommodated by the new system is the inaccuracy of the inventory of the company because the company manually records their inventory. The sales department of the company needs an accurate and real-time data for the inventory to know the availability of the rice sellable to the market. With the new system, the many will be able to record the number of sacks of rice bought from the farmers and can update the inventory instantly. The second problem is the payroll.
The computation of the compensation of employees differs to one another, which makes it complicated especially that only one person handles the payroll. The new system that is being proposed by the group will shorten the length of time and effort that is needed in computing the compensation of the employees. With that being said, the group proposed three alternatives that the company can use in order to have a new automated system: (1) In-house development system; (2) outsource system; (3) COTS. The company has to hire new employees that can create the system for them.
These employees will also handle the implementation of the new centralized system. Considering the factors that could affect the planning and creation of the program, this alternative will cause a lot of time and expense but it will also the system that could create the highest output for the company. The next alternative is to outsource the system. The system will be created and will be maintained by the people outside the organization. The outsourced system will be much likely the same with the in- house system, except that it is going to be cheaper.
The only problem of outsourcing the system will be the communication between the provider and the company. In case there are problems that the company will encounter, they will not be able to address it immediately and have to wait for the assistance of the provider. The last alternative is to buy commercial-off-the-shelf system. This kind of system is already made and the features cannot be changed, although there are some software companies that offer customization. If the company chooses this alternative, they will be able to implement it once the COTS is purchased.
This requires the shortest completion time but it also gives the least output because of the features that the company cannot use or do not need. Proposed Solution After the evaluation of the group, they suggest that the best alternative that the company can use to address its problems is to have an IT department in the company will create and maintain the system. With the in-house system, the users of the systems will be able to fully understand the features of the system because it will be based on what the company really needs.
The proposed system will mainly handle the inventory, sales and payroll of the company but it will also have some other features. For the inventory, this includes the number of unprocessed play rice bought from the farmers by the company, the milled rice, and the packed sacks of rice that are ready to be distributed to customers. The inventory database will be With this kind of inventory, the company will be able to keep track of all the activities that affect its productivity. For the sales, the proposed system will generate an invoice that will contain all the details of the purchase made by a customer.
The company will have an easier access to customer’s profile every time the customer makes a purchase. The proposed system will also have a form that will be used in order to record the sales order. Using the sales invoice, the system will be able to compute for the yearly sales profit of the company. The payroll is crucial company. With the current system that the company is using – checkers – in recording the attendance and productivity of the employees, there are some redundancies and inaccuracies.
Some employees even sneak out during their work time. With the proposed system of he company, the employees are obliged to time in and out every day because it will reflect on their accounts in the systems. The employees attendance will be used in computing for the payroll together with the wages and salaries applicable for their jobs. Recommendation Since all of the problems of the company lies under business processes that are interrelated to each other, a centralized system is the most ideal solution to solve the problem.
The owner – also the manager of the company – must first analyze the proposed solution of the group. Then set up a meeting with the group to clarify some questions regarding the proposed solution – new centralized system. The proposed new centralized system will be mainly focusing in the operations, finance and human resource business functions but since all the business processes under the business functions are interrelated, the not mentioned business processes will also be integrated in the new system – sales.
The group suggests that the company should first create an Information Technology Department for the new system is advisable to be made tailored to the need of the company or customized. The Information Technology Department will be composed of at least two software programmers. The new centralized system will address the problem in inventory management, payroll, employee attendance and decision – making. In the new system, the group suggests that company should get a digital time clock system – Tillie Biometric Time Clock System – which will be integrated in the new system.
The group decided to automate the employee attendance system for the quantity of the employees – 300 – is hard to manage manually and the record of the employee attendance can be easily viewed. Since the payroll is based on the employee attendance, the human resource will not have a hard time and in calculating the wage of the employees and he data is accurate and timely. Therefore, the company would not encounter the same problem as to paying the dishonest employees the standard wage.
Through the system, financial reports can be easily generated for all the data needed is already stored and integrated in the new system. The inventory management will be automated. In the inventory management system that will be integrated in the new number of sacks processed in the new system which will serve as the inventory tracker of the company. They will Just deduct the number of goods delivered to update the inventory.