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A Project Study Presented to the IT Project Evaluation Committee Bestlink College of the Philippines Quezon City, Philippines
In Partial Fulfillment of the Requirements for the degree Bachelor of Science in Information Technology
By:
Avellano, AdamzEdd D. Garcia, Isaac C. Magadan, Edwin E. Jr. Vinero, Paul Vincent O. Yee, Ernesto L.
4101-01A
Local Government Unit Certification I certify that this project does not incorporate, without acknowledgement, any material previously submitted for a degree diploma in any University and to the best of my knowledge and belief, it does not contain any material previously published or written another person or myself except where due reference is made in the text. I also hereby give consent for my project study. If accept, to be made available photocopying and for inter library loans, and for the title an summary to be made available to outside organizations.
Name and Signature of Group/Individual Avellano, AdamzEdd D. Garcia, Isaac C. Magadan, Edwin P. Jr Vinero, Paul Vincent O. Yee, Ernesto L.
Name and Signature of adviser(s) Mr. Dennis Gonzales Ms. Lavinia Joy R. Bigornia Mr. Rich Sulay Mr. Rico Bundoc
Local Government Unit ABSTRACT The proposed system Material Management Procurement System is vital to decision making and plays an important role in the success of the organization. Computerization of the procurement records and documentation has resulted in efficient data management for the Administrator and other users can now access the information without delay or errors. The existing system requires more improvement to meet the requirements of the Administrator. Majority of the users feel that MMPS helps in education and research. The purpose of this document is to describe the requirements for MMPS. The intended audience includes all the future users in the potential system. Theses include, but are not necessarily limited to the following: administrator and other users. Users should consult this document and its revisions as the only source of requirements for the project. They should not consider any requirements statements, written or verbal as valid until they appear in this document or its revision. The system will be used to get the information from the suppliers and then storing that data for future usage. The current system in use is a manual system. It is too slow and cannot provide updated list of suppliers within a reasonable timeframe. The intentions of the system are to reduce over-time pay and increase the number of suppliers that can transacted accurately.
Local Government Unit ACKNOWLEDGEMENT This project study won`t be possible without some people who really helped and encourage us to complete this project study. The researcher wanted to thank first our almighty god of is guidance, power and unconditional love. To the researchers technical adviser, Mr. Ryan CantillanaAureus, for him helpful critique and self -knowledge about Material Management and procurement System that he has rendered. To the researchers consultant, Mr. Ryan CantillanaAureus for always supporting in every ways, from resources to their own knowledge. The researchers project advisers Mr. Dennis Gonzales, Mr. Rico Bundoc, Ms. Lavinia Joy Bigornia and Mr. Rich Sulay who has been the initial resource of the requirements, for his shared knowledge that helps a lot during our study. To the PEC, Mrs. RosicarEscober, Mr. Rommel Constantino and Mr. Rico Bundoc, for their fair and honest criticisms. The researchers` supportive families and friends, who always strengthen the researchers heart and minds, always encourage pursuing this study. Also the researchers sincerely thank them for the financial needs. Lastly, the researches would like to thank each other in the group for the time, money and resources that the researchers shared with each other make this project study more possible. To God Be the Glory! We can do all things through Jesus Christ who strengthens us.
The Researchers
Approval Sheet Abstract Acknowledgement List of Tables List of Figures List of Acronyms
2 3 4 8 9 10
Chapter 1 Introduction
...
11 11 12 12 12 13 13 13 13 13 14 15 15 15
1.1 Project Overview ... 1.2 The Problem Domain ....... ...
1.3 Objectives of the Project ... 1.4 Significance and Scope of the Project ... ...
1.5.1 Documentation of the current system/s ... 1.5.2 Problem/s identified with the existing system ... 1.5.3 Process models of existing systems contributing to the problem ...
1.5.4 Data models of these existing systems ... 1.6 Review of Existing Alternatives ... 1.6.1 Description of how users/client currently cope with the problem 1.6.2 Assess the best available resources for addressing the problem ... ...
1.6.3 Describe how you propose to take advantage of existing and current best practices in your project. ... 15
2.1.2 Local Literature ....... 2.2 Related Study ....... ....... ....... ...
...
3.1.1.1 Goals and objectives ... 3.1.1.2 Statement of scope 3.1.1.3 Software context 3.1.1.4 Major constraints ... ... ...
3.1.2 Usage scenario ... 3.1.2.1 User profiles ... 3.1.2.2 Use-cases ...
Local Government Unit 3.1.3.3 Complete data model ... 3.1.4 Functional Model Description ... 3.1.4.1 Class diagrams ... ... 46 47 47 48 48 48 48 48 48 48 48 49 50 55 55 55 55 55
3.1.4.2.1 External machine interfaces ... 3.1.4.2.2 External system interfaces ... 3.1.4.2.3 Human interfaces 3.1.4.3 Reports ...
...
3.1.5 Behavioral Model Description ... 3.1.5.1 Description for software behavior 3.1.5.1.1 Events 3.1.5.1.2 States 3.1.5.2 State chart Diagram ...
... ...
. 11 . 12
. 34 . 39
Use-case: Get delivered supply Use-case: Issue invoice Use-case: Create reports
. 39 . 39
. 38 . 42
Figure2. Activity Diagram for logging onto the system Figure3. Activity Diagram for check and update
. 43 . 44 . 45
Figure5. Activity Diagram for view supplier/purchased items Figure6. Relationship Diagram Figure7. Class Diagram
. 47
. 48 . 51
Figure8. Overall System State Chart Diagram Figure9. State Chart of View Supplier Figure10. State Chart of View Report Figure11. State Chart of Update Record
. 52 . 53 . 54
Local Government Unit LISTS OF ACRONYMS MMPS IT PS Project Study Information Technology Material Management Procurement System
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Local Government Unit Chapter 1 1.0 Introduction Information technology is any field that involves computer technology. This includes hardware maintenance, software development, networking solutions and technical support. Modern businesses all over the world rely on computers to function and maintain high standards of efficiency and customer service. Without IT professionals, companies would not have qualified professionals to help maintain the technological elements inherent to their daily needs. One of the main reasons so many business have turned to the IT world for their professional needs is the sheer speed at which computers and related technologies can process information. Email is a perfect example, as it eliminates the need to wait several days for a packet of documents to reach a client or business associate. Worldwide communications used to occur primarily through postal delivery. In this chapter we will introduce the focused on basic methods of Procurement for goods; construction, machine, etc. open tendering and request the proposals etc. and their key methods, secondly look at the consideration that govern the choice procurement method and how reflected In procurement. The researcher will discuss about how Information Technology helps the government in preparing their Procurement annually. The group will use the power of IT to find a way on how the City Procurement Department will serve the people at its best. 1.1 Project Overview The local government unit its a provide development plan for the local government projects to develop. All departments are an in charge its one a procurement department. To bidding all uses to suppliers for developing, the goods and services machine etc for the development center. The allocation of resources among different functions reflects both the particular goals that government wanted to attain and the relative priorities assigned to each goal. The representative of the department did not take any chance for any interview that we cannot ask for the exact answer that we might need in order to create a system that may fit for them. But this problem cannot be a bias for the team to attain its goal. The researchers make sure that the system will fulfill all the needs of the department as you read this documentation; you will learn how the team does its best to make the City Material Management Procurement System.
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Local Government Unit 1.2 The Problem Domain 1.2.1 Statement of the Problem (It should be a bullet type format) The specific problems they are encountered. Knowing this part will give the group such an each individual are living with their different aspects in their life. Encountering different problems, but it helps accommodate them how will they give solution for their common problems. Likewise, the group conducted a study about Local Government Unit which focuses on Material Management and Procurement System. In additional, the group made a research about what are the general and idea on how they can develop/organize a system that is more sufficient.To develop the current system of LGU is a convert to LAN to ease the work of in BAC for proposal the bids of anything, if that LAN based can have the post the proposal of bids to all contact of bidders. 1.3 Objectives of the Project (It should be based on the Statement of the Problem and based on the following: a. Current relevant institutionalgaps The local government unit are many project for the city, the one involve is procurement department. This department is a incharge for the catach of the supplier for developing the project. b. Improvements/enhancements to the current running systems; and All coming researcher objectives is a improve and developed a current system from manual to automated system, for fastest transactions process of anything inside the system.
c. Requests by users/clientele for systems development initiative) The user /client requesting to develop existing system will lessen their work and fastest way for not going back to manual system.
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Local Government Unit 1.4 Significance and Scope of the Project (It should be a bullet type format when it comes to scope) The following are the scope of the proposed Material Management and Procurement System: Allocation of bidding among different development sectors/projects. Maintenance Commands (ADD, EDIT, VIEW, ACTIVE ,DEACTIVE, PRINT, SEARCH). Procurement procedure.
1.5
Documentation
of
Existence
and
Seriousness
of
the
Problem
1.5.1 Documentation of current system/s The current system of Quezon City Hall that we gathering a some data or information to become processes in fastest way of using or applying advanced technology to be more effective if we implement our system.
1.5.2 Problem/s identified with the existing systems The problem of system is typographical and delay documents.
1.5.3 Process models of existing systemscontributing to the problem Some data is not appropriate stored in right arrangement of date and name.
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Local Government Unit 1.5.4 Data models of these existing systems The Flow chart shows the relation of existing system process at Quezon City Hall in updating of bidding.
Receiving of Documents
Completeness
Completeness
Alternative mode Prior resolution to use alternative mode Prepare Quotation for bidder
Post qualification for winning bidder Abstract as read and Calculated Resolution of award
Post Qualification for winning bidder Abstract as read and Calculated Resolution award
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Local Government Unit 1.6 Review of Existing Alternatives (This part should be able to present the following in not more than 600 words) The existing system copes with the problem by alternation of employees because of small number of employees to handle the workloads. Because of modernization of our generation, there are lots of changes especially when it comes to technology. Because of this, many companies are buying systems which will improve their business process and business transactions that will work less the same time, making the process fast. The proponents are proposing and develop a procurement system of Quezon City Hall to improve their business process and transaction. 1.6.1 Description of how users/clientelecurrently cope with the problem.
Handle the problem with double check the data of all bidders coming our company.
1.6.2 Assess the best available resourcesfor addressing the problem. The best resources is the client of involve in the procurement of Quezon City hall because her said limited information of the procurement process because the confidential.
1.6.3 Describe how you propose to take advantage of existing and current best practices in your project.
The advantage of developed system is less effort of work. In fast way to analyze the system for how to create this project Work, then will give more information for all transaction of the system to be implemented.
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Local Government Unit Chapter 2 - Introduction The documentation is descriptive and explanatory research endeavor. It seeks to inform the reader about the benefits and advantages of having convenient and systematic material management procurement system. Having convenience in all our tasks performed in the local government is very helpful using high technology equipment and gadgets. And because of the highly technology, the material management procurement wants to keep pace with other users as well as technology. 2.1 Review Related Literatures 2.1.1 Foreign Literature United States The Foreign Military Sales is a Security Assistance Program which is administered by the U.S. Department of Defense and which allows eligible foreign governments and international agencies to purchase defense-related articles, defense services and military training from the U.S. Government. The U.S. Department of Defense serves as an intermediary, handling procurement, logistics and delivery and often providing product support and training. The Foreign Military Sales will be considered as a method of procurement when the goods or services required relate to military equipment of U.S. origin and when, on the basis of the information available at the time, those goods and services are available or can be made available from the U.S. DOD. When Public Works and Government Services Canada Headquarters determines that a requirement will be sole sourced to the U.S., the requisition must be reallocated to Public Works and Government Services Canada Headquarters Washington. Decisions by Public Works and Government Services Canada Headquarters to sole source requirements to the U.S. Foreign Military Sales program must be adequately
documented. The Foreign Military Sales is a mutually beneficial government-to-government method for selling U.S. defense equipment,
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Local Government Unit services, and training. Responsible arms sales further U.S. national security and foreign policy objectives by strengthening bilateral defense relations, supporting coalition building, and enhancing interoperability between U.S. forces and militaries of friends and allies.
internationally agreed trade rules were undertaken in the OECD framework. This matter was brought into the ongoing Tokyo Round of Trade Negotiations in 1976. As a result, the first Agreement on Government Procurement was signed in 1979 and entered into force in 1981. It covered central government entities and procurement of goods only. It was amended in 1987, with this amended version entering into force in 1988.In parallel with the Uruguay Round, Parties to the Agreement held negotiations to broaden the coverage of the Agreement to purchases by sub-central government entities and other public enterprises and to the services and construction services sectors. Following these negotiations, the Agreement on Government Procurement (1994) (GPA) was signed in Marrakesh on 15 April 1994, at the same time as the Agreement Establishing the WTO. The GPA entered into force on 1 January 1996. It led to an estimated ten-fold increase in the value of procurement subject to international competition under its rules, as compared to the approximate annual value, between 1990 and 1994, of US$30 billion of covered procurement under the Tokyo Round Agreement. The value of coverage has expanded considerably since then, with economic growth, inflation and the expansion of the coverage and membership of the Agreement.
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Local Government Unit Indonesia An example of progress in creating a clearer and more coherent system of procurement has been the Indonesia. Up to 2003, more than 60 laws, executive orders, presidential decrees and administrative orders governed the procurement process, which resulted in confusion and conflicting interpretation increasing the likelihood of rigged bidding, delay and irregularities in the bid evaluation process (GP, WB and ADB, 2003, p. 89).Matters in part have been put to right by the enactment in 2003 of the Government Procurement Reform Act and its implementing regulations. This has imposed a uniform procurement system within the public sector, clearly specifying, amongst other things, the methods and stages of purchasing to be followed, the roles, responsibilities, accountability and manner of appointment of procurement officials and committees. Whats more, these measures have prescribed competitive bidding (within the limits indicated below), and greater transparency (IMF, 2004a; 2005a; GP, WB and ADB, 2003; WB, 2005a; Campos &Syquia, 2005).Further harmonization of procurement procedures and the use of uniform bidding documents was established in 2004 for local competitive bidding. But uniform and clearly defined procedures have yet to be adopted for tenders involving foreign contracts, and in bidding for consultancy services for donor funded public works projects. The ADB is currently engaged in a program with the Government of the Indonesia to overcome the remaining anomalies and ambiguities (ADB, 2005). Vietnam In Vietnam too, procurement rules have for years not only been limited in scope, but have also been highly fragmented. A variety of circulars (orders issued by Ministries), decrees (regulations passed by the Government) and ordinances (laws passed by the National Assembly) have covered procurement. Inconsistencies in these rules have given rise to confusion. However, steps have been taken to simplify and harmonize
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Local Government Unit them. Decree 66 of 2003 represented a significant step forward in unifying procurement procedures across ministries, but major inconsistencies still existed with procurement-related provisions in other laws. However, an all-embracing Public Procurement Ordinance has been drawn up (having gone through several drafts) and should reach the statute book in the near future, so imposing greater uniformity, and providing, as well, the legal basis of an open and competitive purchasing process (SRV and WB, 2005). Limited efforts to upgrade and harmonize fragmented procurement laws and regulations have similarly been undertaken in 6 JONES. Cambodia In Cambodia, a fragmented system of procurement continues, governed by a plethora of disparate and uncoordinated sub-decrees in the absence of an overarching procurement law (WB, 2004a). In Indonesia too, public procurement rules remains highly fragmented. The World Bank reported in 2001, that in the procurement process, a multiplicity of laws and decrees and regulations constitutes a source of confusion with the risk of overlapping jurisdiction made worse by inconsistent provisions and a lack of clarity in important policy and procedural requirements (WB, 2001, pp. 1, 9). Presidential Decree 18 in 2000 concerning procurement outside construction provides a semblance of uniformity, but leaves in place, and does not supersede, many other laws, decrees and regulations affecting procurement (WB, 2003). However, in 2005, a start was made in drafting a comprehensive procurement law to create a uniform and more clearly defined set of procurement procedures (IMF, 2005b). The fragmentation of the procurement laws and regulations not surprisingly leads to a good deal of non-compliance. For example, in Cambodia, much of the procurement continues to be undertaken with little regard to the legal and administrative obligations that regulate the purchasing process.
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Local Government Unit 2.1.2 Local literature Innovation and Public Procurement: Review of Issues In modern capitalist system, most people would agree with the statement that innovation occurs in firms. Similarly, where several attempts to innovate occur simultaneously, the most efficient solution will be determined by market exposure and competition. The role of public agencies, voices stressing supply side policies would argue, should be to provide e.g. education and infrastructure, and leave innovation to be spurred mainly by the market. Public intervention in innovation should be limited strictly to instances of demonstrable market failure or problems, and even in these cases public intervention should be restricted to the supply side i.e. investments in research and development. ftp://europa.eu/pub/innovationpolicy/studies/chapter2_literature_review.p df
Systematic
Literature
Review
of
Flexible
E-Procurement
Marketplace During the Web era e-procurement has witnessed a steep rise in marketplace deployment; this has been followed by a substantial number of failures. A number of larger technology providers are now left to support both small and large businesses. Flexibility has been a key enabler in supporting network evolution across a varied number of domains. The aim of this study is to investigate flexibility around marketplace evolution, success and failure. In particular, explore the inter-relationships between architectural flexibility and the evolving Web and Internet. A systematic literature review (SLR) was carried out in order to uncover the changes that have taken place over the past fifteen years. A conceptual model is produced early in the research in order to provide contextual underpinning. We employed a manual search of 5 journals. Of the 22 relevant studies, one addressed research trends around e-procurement in pharmaceutical organizations. Three addressed e-procurement in financial
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Local Government Unit organizations. A number of flexibility categories are uncovered by the SLR and then used as a means to support flexible EPM design and adoption. Flexibility categories are uncovered and comprise technical, organizational, environmental and strategic (TOES) concerns. http://www.academia.edu/2606126/A_Systematic_Literature_Review_of_ Flexible_E-Procurement_Marketplace
Procurement and Development Effectiveness - A Literature Review Eurodad has identified public procurement policies and practices by developing country governments and aid agencies as a key area in which more progress is needed in order to improve the effectiveness of official development assistance. Public procurement accounts for up to 40 percent of GDP in some developing countries. Besides being an important share of these countries economies, procurement policies are an important instrument to achieve socioeconomic goals such as economic
development, poverty eradication and social equity. Procurement policies are also an important policy tool in the hands of governments to boost the national socio-economic fabric as part of their development strategies to gradually reduce aid dependence. In aid dependent countries in particular, a considerable share of public procurement is financed through Official Development Assistance (ODA) injected into national budgets as budget support. The use of developing countries own procurement systems was a donor commitment included under international agreements on aid effectiveness including the Paris Declaration and the Accra Agenda for Action. A second commitment was to untie aid to a maximum extent, aiming to increase the efficiency and development effectiveness of aid agencies own procurement.
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Literature Review and Research Issues in e-Procurement Over the last couple of years, e-Procurement has received tremendous attention from researchers and practitioners alike. However research on e-Procurement is still scarce and scattered. This paper looks into prior research on interorganizational information systems (IOIS), electronic data interchange (EDI), channel management and procurement to develop a research framework and identify research issues in eProcurement defining important terms such as volume, width and depth of e-Procurement and classifying the ownership and governance structures of web-based IOIS. It is argued that supply market characteristics and product characteristics can explain emergence of various e-Procurement systems. Further these e-Procurement systems have different impact on interorganizational relationship and value generated from e-Procurement. However these impacts are moderated by adoption and implementation risks. This paper also summarizes the main benefits of an organization using e-Procurement and also their disadvantages and limitations. http://mls.sagepub.com/content/36/3/225.abstract
State of Philippine Public Procurement According to the World Banks Philippine Country Management Unit (2000), a survey conducted by the Social Weather Stations (SWS)1 in 1998 revealed that about 38% of those asked believed that there was a great deal of corruption in government, while 34% replied some. The majority of the respondents perceived that more than 50% of government funds were wasted in building roads alone. A SWS 2002/2003 survey reported that a conservative estimate of leakages lost to corruption would
Material Management Procurement System 22
Local Government Unit be about 20% of the total budget of government for procurement (Social Weather Stations, 2003). According to Senator Edgardo J. Angara (2002), the Department of Budget and Management (DBM) estimated that an average of P22 billion annually was lost to graft and corruption in public procurement of locally funded projects alone. P22 billion is twice the budget of the Department of Health. This is equivalent to 520 million textbooks for Philippine public school children or 63,000 new classrooms. This amount also translates to 1,500 kilometers of concrete farm-to-market roads. Since procurement is the government activity where huge losses are perceived to occur, reforms in the said area therefore should have a substantial impact on the delivery and quality of social services. Prior to January 10, 2003, there were over one hundred administrative guidelines on public procurement affecting both local government units (LGUs) and national government agencies. Some of the issuances were conflicting, which allowed for differing interpretations by implementing agencies. The enactment of a procurement law that would streamline and standardize reforms at all government levels to achieve long-term reforms was imperative. Moreover, the reform efforts would also aid in maximizing scarce resources allotted for the provision of public services, intended to directly benefit the poor. Reducing corruption in public procurement, however, is a public good and essentially suffers from a free rider problem, which is that of collective action. Even if many want to see a reduction of corruption in public procurement, http://www.ippa.ws/IPPC1/BOOK/Chapter_3.pdf
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Local Government Unit 2.2 Related Study 2.2.1 Foreign study The business challenge faced by the organization in question and why they perceived procurement outsourcing to be an appropriate response The scope and form of procurement outsourcing chosen The procurement process used and identification of procurement innovations and best practice The transition path adopted Quantification of changes in KPIs, including changes in cost and process performance achieved Key lessons learned. that can be applied to future procurement exercises. http://www.nelson-hall.com/service-line-programs/procurementoutsourcing/case-studies/#sthash.Pjd1nsNI.dpuf
Harvard University developed the well known case studies approach for MBA curriculum. For International Management,
Thunderbird University is the known leader. Cranfield University in United Kingdom, also published much work on case studies. Using these publications and the internet search, add much to the learning of global business and leadership. One of the hottest jobs today is being a project manager. After the project management course, MBA students are taking the Contract Procurement Management course. Contract manager works closely with project manager. The new survey indicated thatcontract management and procurement management are two of the growing disciplines globally, during the economic downturn in 2008. MBA
students completed real-life case studies as their final projects. This paper summarized their results. Harvard University, Thunderbird University
and Cranfield University UK have been publishing case studies for 20+ years. Massachusetts Institute of Technology, Polytechnic Institute of New York and Stevens Institute of Technology offered the Executive Master Degree program in Technical Management to differentiate themselves
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Local Government Unit from the traditional MBA degrees. Project Management is one of the core courses Since project management is cross-functional, the project skills learned can be applied to any industry Companies started to hire project managers in construction, engineering, environment, finance, human resource, marketing, software or any large/small project. In 2008, project manager became one of the hottest job titles, with 3,500 daily openings listed on Dice.com, Hsu (2007). The next hot job title is Contract and Procurement Management (CPM). http://www.gobookee.net/get_book.php?u=aHR0cDovL3d3dy5nLWNhc 2EuY29tL1BERi9tYWxheXNpYS9Ic3UucGRmCkNhc2UgU3R1ZGllc yBpbiBDb250cmFjdCBhbmQgUHJvY3VyZW1lbnQgTWFuYWdlbWV udCAtIENBU0EgLSBIb21l
During the past few years, several innovative IT based applications have emerged around the world that promise to bridge the proverbial digital divide by linking growers directly to domestic and international markets through the internet. Online commodity auctions are an example of such initiatives and have the potential to impact the livelihood of millions around the world. However, an important factor that affects the benefits obtained. by growers is the supply chain structure that results from the introduction of the online platform. In this paper, we provide a case study of an online coffee auction established in India for selling various grades of coffee beans. The focus of the case study is on the supply chain structure that is likely to evolve under various product and supplier characteristics. We argue that the online direct selling of commodities by growers is likely to evolve only under a certain set of conditions. We also argue that governments and platform providers can facilitate online direct selling by growers through initiatives that increase the bargaining power of the growers and increase
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Local Government Unit the confidence of the buyer to directly procure from lesser known growers. http://www.gobookee.net/get_book.php?u=aHR0cDovL2FzdHJvLnRlb XBsZS5lZHUvfmJhbmtlci9JbmZvcm1hdGlvbiUyMFN5c3RlbXMvZW NyYS1yZXYtZmluYWwucGRmClBST0NVUkVNRU5UIE1PREVMU yBJTiBUSEUgQUdSSUNVTFRVUkFMIFNVUFBMWSBDSEFJTjog QSBDQVNFIC4uLg==
This case study focuses on records management systems (RMS) technology acquisitions. It is one of 18 case studies prepared for the Technology Acquisition Project administered by the Institute for Law and Justice in partnership with Government Technology, Inc., and funded by the National Institute of Justice (NIJ), U. S. Department of Justice. The author of this case study is Steve Pendleton, President, Information Analytics, Inc. The report has been reviewed by the participating site but should be considered a draft pending final NIJ review. http://www.gobookee.net/get_book.php?u=aHR0cHM6Ly93d3cuaXQub2 pwLmdvdi9wcm9jdXJlbWVudC9maWxlcy9QaWVyY2UtUHJvY3VyZ W1lbnQucGRmClRlY2hub2xvZ3kgQWNxdWlzaXRpb24gUHJvamVjdC BDYXNlIFN0dWR5IFBpZXJjZSBDb3VudHkgLi4u
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Local Government Unit 2.2.2. Local study Curbing Corruption in Public Procurement This session will introduce the audience to the general concept of public procurement, its importance in national economies, and its basic principles of economy, efficiency, transparency, and fairness. Key concerns of corrupt and fraudulent practices will be discussed along with their correlation to development. The main steps of a procurement process will be presented together with their methods and underlying requirements for meeting Good Governance principles. Figures on the global impact of corruption (with captioned source of information) will also be presented. The aim thereof is to draw the audiences attention to the gravity of the issue and to the amount of resources wasted due to fraudulent practices. The effect of corruption will be presented byregion (with country specifics in a given region) based on which comparisons and general conclusion swill be generated. This exercise will in the end allow estimating the effect of reducing, if not minimizing, corruption in public procurement. http://www.oecd.org/site/adboecdanticorruptioninitiative/regionalseminars/35165472.pdf
SCHOOL-BASED PROCUREMENT WATCH PROJECT(BANTAY ESKUWELA), PHILIPPINES The Philippines school-based Procurement Watch pilot project commenced implementation in April2009. The stated objective of the project is to stimulate and sustain client interest through the Parent Teacher Community Associations (PTCAs) and other grass-root NGOs in furthering procurement transparency and accountability reforms in selected public schools under the Basic Education Sector Reform Agenda. The project aims to achieve this through participatory
Material Management Procurement System 27
Local Government Unit monitoring of the public procurement of school furniture, and in particular student armchairs, undertaken by community volunteers from local PTCAs across the Philippines. AusAID directly engages with an
indigenous civil society organisation (with international affiliation) as the delivery intermediary within a broader education program, in
collaboration with the Philippines Department of Education (DepED). DepED had an existing relationship with a social accountability organisation G-Watch, in monitoring their procurement activities with textbooks prior to the design of the school-based Procurement Watch project. AusAID is investing heavily in the education sector program and found it straightforward to present the case to the Government of Philippines for the school-based Procurement Watch project in terms of protecting its overall education investment. http://www.ode.ausaid.gov.au/current_work/Documents/school-basedphilippines.pdf Accountability in Public Procurement, transparency and the role of civil society Accountability constitutes a central pillar of any public procurement system. Withouttransparent and accountable systems enabling governments and citizens to engage in a mutually responsive way, the vast resources channelled through public procurement systems run the danger of increased corruption and misuse of funds. Even in a system with low levels of corruption, public and civic oversight can help identify inefficiencies, thereby increasing procurement efficiency and effectiveness for the benefit of improved service delivery and ultimately citizens. In UNDPs Capacity Development framework most often encountered in the work to strengthen capacities with national and local governments. Accountability exists when rights holders and duty bearers both deliver on their obligations. (UNDP 2008: 12). This conceptually links accountability to a rights based understanding of development
Material Management Procurement System 28
Local Government Unit following three principles: inclusive rights for all people, the right to participation, and the obligations to protect and promote the realization of rights by states and other duty bearers (Gaventa 2002: 2). As such, the active engagement of a government on one side and its citizens on the other is necessary to achieve any measure of accountability. It is this relationship between state and citizens and the different forms it takes that constitutes the main subject of this case study. http://www.unpcdc.org/media/142496/story accountability.pdf TI-USAs Civil Society Procurement Monitoring Tool The Civil Society Procurement Monitoring (CSPM) tool is a webbased tool that is meant to support Civil Society Organizations (CSOs) or individuals who want to monitor public procurement for red flags for corruption in their respective countries. The tool was designed by Transparency International-USA (TI-USA) in cooperation with CSOs in Indonesia and the Philippines, support from procurement and IT consultants, and funding from the Governance Partnership Facility, of an institution -
administered by the World Bank. http://www.transparencyusa.org/documents/CivilSocietyProcurementMoni toringTool-1-Pager.pdf Scottish Borders council The procurement service in the Scottish Borders is managed as a centralized incorporate function. The team is relatively new, at four years old, and comprises ten staff. There is a mix of category managers and procurement specialists across Corporate Indirect, Learning and Care, and Construction, Transport and the Environment. This centralized method allows the team to embed a consistent approach across the Council, with a strong focus on: ensuring best value; early stakeholder engagement; and
Material Management Procurement System 29
Local Government Unit compliance with national and EU legislation and local standing orders. The procurement service collaborates with professional, technical and specialist commissioners to ensure the appropriate internal stakeholders input and knowledge to each procurement activity. External providers are used to support a number of requirements, such as homecare services. There is no internal Building Services (STO) therefore local trade companies provide services to support the property and maintenance portfolio; this is one of the key reasons for their high proportion of local spend all of the Councils trade services and minor works contracts are provided through the private sector. The key objectives of the Scottish Borders current procurement strategy ensure the local dimension and the need to think locally is well recognized. =http://gps.cabinetoffice.gov.uk/sites/default/files/Capita frameworks help save time and money_0.pdf shows how
2.3 Synthesis & Relevance of the study Governments are significant purchasers of goods and services and these markets represent huge opportunities for international trade. Measuring government procurement for a large number of countries, in a consistent manner, is not a trivial task and careful attention must be paid to ensure that national data is gathered on the basis of harmonized procedures in all countries covered. Quantifying the size of government procurement markets becomes even more complicated when attempts are made at distinguishing procurement between government levels (central versus sub-central), or by types of expenditure (consumption versus investment), or at measuring the share of procurement that is potentially opened up to international trade (contestable). The latter indicator is meant to capture tradable purchases and excludes two categories of government purchases that are assumed to be non-tradable, the compensation of government employees and defense-related expenditure. The absence of detailed and
Material Management Procurement System 30
Local Government Unit consistent measurements of government procurement markets for a large number of countries, broken down by government levels, by types of expenditure and contestable shares, represented an information gap. Informed knowledge about the size of government procurement markets and in particular the shares of national markets that are potentially opened up to international competition is relevant for the business community, governments and trade negotiators.
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Local Government Unit Chapter 3 3.1 Software Requirements Specification 3.1.1 Introduction 3.1.1.1 Goals and objectives This project focus in creating a web-based procurement system that will help the company for easily proposal bidding, purchasing and consume less time in the recordings of data and information. The Material Management Procurement System will be user friendly software that is easy to understand by the user and the owner. And to construct a system that contains all information and data together with their attributes and to implement a system that can easily search, add and update all the records of the suppliers and items, it also lighten the load for the staff and enhance customer service. To create a Material Management Procurement System that will take out the inaccuracy in the recordings of the data and give an easy access to the files and data at any given time. 3.1.1.2 Statement of scope The following are the scope of the proposed Material Management Procurement System:
Allocation of bidding among different development sectors/projects. Maintenance Commands (ADD, EDIT, VIEW, ACTIVE ,DEACTIVE, PRINT, SEARCH). Procurement procedure.
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Local Government Unit User Requirements Req. No. Access Privileges R1 High Supplies There shall be two levels of access, one for administrator and one for alternative user. Administrator or alternative user shall only be allowed to enter or edit items. The administrator shall be allowed to enter and edit all the data. Only the administrator shall be allowed to view the supplier information. Priority Reference Description
R2
High
Supplies
R3
High
Supplies
R4
Med
Supplies
Security R5 High User Each user shall be required to log on with a unique username and password before using the system. The user does not need to be unique. R5 High Code works The username shall be given by the admin and the trial not greater than three(3) A password shall be assigned to each user. The password shall contain 6 & 8 alphanumeric. After three unsuccessful attempts to enter a password the user shall be locked out if the system until their password set.
R6
High
User
R7
High
Code works
R8
Med
Code works
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Local Government Unit R9 High Administrator A new password shall be assigned if a user forgets If there is no activity for 10 minutes the user shall be logged off of the system.
R10
Low
Costumer
Administrator R11 Med Supplier When a user edits an account their user ID along with the date, time and a description of the change shall be recorded in the database. The user`s record shall contain the following information: Name Address Home phone Work phone Email address R14 High User The software shall support the ability to enter, store, and update costumer and employee information.
R12
High
User
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Local Government Unit 3.1.1.3 Software context In Quezon City Hall, they are using Microsoft Access for their system. That is why the proponents where encouraged to develop an automated system to resolve those problems. For the LGU, the proposed study contains functionality will help in the manipulation and modification of records of suppliers and items within the company, through this capability the system is able to generate a more accurate and reliable information needed for different procurement transactions. 3.1.1.4 Major constraints The Marterial Management Procurement System will use Java NetBeans IDE 7.3 for front-end and MYSQL for back-end whichrequires a windows application supporting this technology. 3.1.2 Usage scenario 3.1.2.1 User profiles The following definitions describe the actors in the system; Administrator an administrator has the responsibility to monitor and update the Items and suppliers. They have unrestricted access to the system including viewing and changing the passwords. This person can generate the bidding reports and also the admin can check the contract information the supplier. Assistant is the person that can check the bidder, the recorded depleted bidder, and check the status report. Supplier is a manufacturer who suppliers items to development sectors.
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Local Government Unit 3.1.2.2 Use-cases The following use-cases are typically interactions between the external environment and the internal system. 1. Log in 2. Adding User 3. Viewing User 4. Viewing bidder information 5. Add Bidder 6. Update Bidder 7. Create Report
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Log in
Adding user User Viewing user info Administrator Viewing supplies info
Add supplier
Update supplier
Create reports
Process order
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Local Government Unit 3.1.2.2.2 Use-case Descriptions Use case Primary Actor: Precondition: Trigger: Scenario: Get delivered supply Administrator The supply from the supplier Administrator needs to get supply 1. The Administrator process and delivered the supply/s. 2. The Administrator knows quantity and condition of the supply. 3. The Administrator receives the invoice on each supply.
Use case: Primary Actor Goal and Context Precondition Trigger Scenario:
Issue invoice Supplier To create invoice for the supply The user needs invoice for the others The supplier needs to create the invoice 1. The supplier process and count all the supply/s. 2. The supplier checks all the supply and creates the invoice. 3. The supplier sends the invoice to the user. 4. The users receive the invoice.
Create reports Administrator To generate a report about the management of the system The manager is requesting a report
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Local Government Unit Trigger: Scenario: The Administrator needs to generate a report within the system 1. The Administrator logs on to the system 2. The Administrator selects the reports to view. 3. The system retrieves the report and view by the administrator 4. The system prompts to print the report. 5. The Administrator then approved the request. 6. The system retrieves data from the local server. 7. The local server sends back the required information requested. 8. The system print out the report requested. 9. The administrator retrieves the print of the report. 10. The reports are requested by the management. The management didn`t request for the reports.
Exceptions:
Viewing item information Administrator and user To display recent supply and supplier in the main window The management wants to see the recent supplier. The user needs to display recent supplier in the main window 1. 2. 3. 4. 5. 6. The management wants to see the recent supplier added. The user logs on to system. The user selects the display from the main menu The user selects the recently added supplier. The system requests the record. The system displays the recently added supplier in the menu.
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Local Government Unit Use-case: Primary actor: Goal and context: Precondition Trigger Scenario: Adding user Administrator To add and assign a user The administrator must have the valid username and password. The administrator must have the valid username and password. 1. The Administrator log on the system. 2. The administrator go the system.
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Local Government Unit 3.1.2.3 Special usage considerations 3.1.2.4 Activity Diagrams The following activity diagrams show the actions that occur during a particular use-case. Figure 2 shows the steps taken as a user logs onto the computer system. Access is only granted of the correct user ID/password combination is entered within the first three attempts the system will automatically shutdown. Once access is granted the user can use the system according to their level of authorization.
Log on to system
Verify password
[incorrect] [correct]
Access granted
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Local Government Unit Figure 3 checking and updating item information is depleted in figure 3, as shown on the diagram the user will be able check the supplier and purchased item but only admin will be allowed to edit.
Check supplier/item
Update supplier/item
Save
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Local Government Unit Figure 4 shows that only admin have access to viewing and printing reports after the report is displayed on the screen it can be sent to a printer.
View/print reports
View report
Display report
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Local Government Unit Figure 5 as shown in the diagram the user will be able to view the supplier and purchased items.
View supplier/item s
Click view
[No result]
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Local Government Unit 3.1.3 Data Model Description 3.1.3.1 Data objects User Account data objects UserId Name Address Contact No. Position A unique number assigned to the user. The user`s complete name. Home Address of the user. The employee`s contact No. The job classification of the employee.
Item data objects ItemId Name Quantity Price Description A unique number assigned to the item. The name of item. The quantity of different item The price of item. The category of item
Supplier data object SupplierId Name Address Contact No. A unique number assigned to the supplier. The company name the Address of the company. The employee`s contact No.
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Local Government Unit 3.1.3.2 Relationships An employee can work only in the one department on the other hand a department can have more employees, so that between the employee and department is the one too many relationships. Each manager can only manage one department and vice versa. An employee can work and many relationships exist. 3.1.3.3 Complete data model The relationship between the data objects describe 3.1.3.1 re shown in figure 6
Supplier SupplierID Company name Company address Contact number Purchase order
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Local Government Unit 3.1.4 Functional Model Description 3.1.4.1 Class diagrams
User Account - Name : String - Username : String - Designation : String - Password : String + Login() : String +Save() : Boolean +Cancel() : Boolean
1 1* Item - ItemID :Int - ItemName : String - Description : String - Category : String -Date :Int - Price :Int + Add() : String +Edit() : String +Check() : String User - Name : String - Username : String - Operator : String - Password : String + Add() : String +Edit() : Boolean +Delete() : Boolean Supplier - Purchase Order :Int - Company : String - Contact no.: Int - Address : String + setOrder() :void +getreceipt() : void
0*
1*
1*
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Local Government Unit 3.1.4.2 Software Interface Description 3.1.4.2.1 External machine interfaces The software will be capable of printing invoices and reports or local network printing 3.1.4.2.2 External system interfaces A Material Management Procurement communicates with a LAN-based network connection. 3.1.4.2.3 Human interfaces The windows application shall permit complete navigation and selection using the keyboard alone, addition to mouse and keyboard combinations 3.1.4.3 Reports 3.1.5 Behavioral Model Description 3.1.5.1 Description for software behavior 3.1.5.1.1 Events Supplier is registered Supplier receives orders Supplier sends invoice Payment receive Payment not received Print invoice Item Events Item is registered
Material Management Procurement System 48
System
Local Government Unit Item is recorded in procurement transaction 3.1.5.1.2 States Supplier States Registered Active Inactive Description The supplier is registered in the system. The supplier is ready to accept orders. The supplier is not available to accept orders. Accepted Item states Registered Buy Available Not available The supplier accepted the request of orders. Description The item is registered in the system. The item is buy to the supplier. The item must be recorded in the system. The item is not recorded.
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Local Government Unit 3.1.5.2 State chart Diagram The state chart diagram for the entire system is shown in figure 8. The user Logs onto the system. Every user has different access to the system depending on their position. Only the administrator can access to whole system while the employee has a limited access to the system.
Verifying
Block
Setting Account
Enter ID
Cancel
Access granted
Purchase ordered
Report
View Display
Local Government Unit Figure 9 shows the process of viewing of supplier to see the records including purchase order, supplier name, description, etc.
Supplier name
Description
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Local Government Unit Figure 10 illustrates viewing of reports from weekly summary to month or even a year which will also be updated from time to time.
View Report
Viewing
Weekly
Reports
Monthly
Records updated
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Local Government Unit Figure 11 shows updating of records from record which is newly registered or added on the system to records which are maintained and already saved in the database.
Update Record
Updating
Maintained records
Records
Newly added
Records updated
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Local Government Unit Figure 12 shows the process of registering new user to the system which also shows the updating process of the system.
Registering
Updating
Newly registered
Record updated
Record added
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Local Government Unit 3.1.6 Restrictions, Limitations, and Constraints The server side code shall be written in Java NetBeans IDE 7.3 The system shall be existing LAN structure and with the existing system.
3.1.7 Validation Criteria Software validation will secure that the system responds according to the user`s expectations, therefore it is important that the end users be involved in some phases of the test procedure. Validation checks that the item design satisfies of fits the intended usage (High-level checking) the software meets the user requirement. This is done through dynamic testing and other forms of review. 3.1.7.1 Classes of tests 1. Logging on to the system 2. Viewing and printing reports 3. Reports 4. Viewing and Editing Data 5. Updating supplier 3.1.7.2 Expected software response The software display an appropriate error message when a value outside the accepted limits the accepted 3.1.7.3 Performance Bounds The system shall support up to 100 simultaneous users. The system will provide access to the database management system with a latency of no more than 20 seconds.
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