CHAPTER 1 INTRODUCTION

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1 CHAPTER 1 INTRODUCTION 1.1 Background PT DITOSA is a fast growing distributor company in industrial tools and household appliances industry. Established in 1975, founded by Mr. Sutindra Adi and Mr. Sunardji Adi, PT DITOSA started its business as the sole distributor for Black and Decker Power Tools, covering the whole Indonesian territory. Along with the changing times, the company diversified its business to other markets and business opportunities. Nowadays, PT DITOSA is acting as exclusive distributors for various world famous brands, ranging from industrial tools to household appliances. The company also provides the same service for every customer, starting from traditional hardware shops, end-users to mass merchant modern outlets. The company has been using its own DITOSA Information System, it s consist of 4 system, inventory system for inventory department, spare parts system for spare parts and service department, account receivable system for administration department and general ledger system for accounting department. There is also a lot of paper works for the daily transactions which is quite troublesome. The current information system, which was built in application under DOS-based, is not efficient enough since there are many useless and similar functions that have same purpose and do similar process in the systems. It makes the system looks too complex and it might cause repetitions in data entry and increasing workload among the employees. Moreover, the main problem of this company s information system is unavailability for direct access to view and

2 2 modify the current database system by any employee in the company except by the outsourcing programmer that has built all of these company s information systems. It means that the outsourcing programmer locked the database system so any employee in the company can t view, modify and access the current database system. This unethical behavior by the programmer makes company very dependable to the outsourcing programmer and there is might be a chance for the programmer to do any illegal action on the company s database. So there s a lot risks that company would be faced on this matter. Furthermore, with maintenance that has been done by the outsourcer programmer, it takes approximately 2 hour to shutdown the whole system. For those reasons, the first solution is to provide the company with a better system design in a better platform and process format to increase the efficiency of its company business process. The new system that will be designed should be able to cover the whole business process that would be performed. Since the company plan to implement its new system only on their headquarter office in Jakarta first instead implement it in their each branches directly, its new system architecture design should be in thin client architecture which is using centralized database server because it s low cost in maintenance and has easy distribution on the system. The new system design prototype will be implemented using VB.NET because VB has been the primary development environment in 80% of corporate companies and it is also an extremely popular business language [10]. Since the company has main problem in accessing their current database system, another solution is to provide company with a new design of relational database management system. The current system was using hierarchical database system. It is not appropriate anymore and it has a lot of performance issue, because it must be re-indexed regularly to maintain its performance. So the best solution for their

3 3 database issue is to provide them with a new design of relational database management system The completion of this thesis will be done in a group of two, which consist of the author and Abraham Jordan Hutagalung. For the task allocation in this field project, the author will mostly design the database system, while on the other way Abraham Jordan Hutagalung will mostly design the system process and user interface. Other areas such as the analysis of the project will be done cooperatively, as each other will combine the result of each research together. 1.2 Scope The scope of the project is: 1. To design a new system for PT DITOSA New Information System, specifically on the database design. Eliminating data redundancy to achieve the most efficient and effective way of database design. The new PT DITOSA information system performs all of the daily transactions and Operation in the company. Data entries are made whatever it is needed and should be as few as possible. All functions should be included as solicited by the users. 2. To replace all of the existing system with the new designated system. The new designated system will be efficient and effective in terms of procedures and time. 1.3 Aims and Benefit The aim of this system is too enhance the efficiency and effectiveness of the business process significantly, in term of financial, performance and time.

4 4 The benefits of having this new system are: 1. A user-friendly system so any new users are able to learn how to use the system straightforwardly because it is easy to use and not complicated for them. 2. Reduce paper-based works, which are quite troublesome and costly especially the sales orders. 3. Minimize Human Error Factor that might be occurred in the new designed system. 4. Reduce and Minimize difficulties in data processing that actually happened in the current existing system. 1.4 Structures These are the brief descriptions of what each chapter contains: 1. Chapter 1 Introduction This chapter describe about the project s background, scope, aim and benefits. 2. Chapter 2 Theoretical Foundation This chapter contains about theoretical foundation and frameworks which will be used or support the design solution for the problems. 3. Chapter 3 Problem Analysis On Existing System This chapter covers about the analysis and understanding of the problems and the solution for the problems that occurred from the current existing system. 4. Chapter 4 Design Of Proposed System This chapter describe about the steps of designing the solution for the problem and how we design the system in order to make the system works properly and effectively.

5 5 5. Chapter 5 Solution Implementation This chapter contains the answer or solution of the problem presented in the previous chapters. Furthermore, it tells about the research data and analysis of the results. 6. Chapter 6 Discussion This chapter contains the understanding of the problems and the solution for the problems, an also the evaluation and clarification of the most important results. 7. Chapter 7 Conclusion and Recommendation This chapter discusses about the general conclusion in putting the system into practice and the future suggestions for the system.

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