Accounting information system

| September 29, 2018

HA2042 –
Accounting Information Systems

Due: 5pm Friday, Week 11

You are to prepare a submission
to satisfy your client’s requirements as outlined below. You are required to
investigate the issues at Pressure Hydraulics and provide a feasibility study
into the improvement to their current business processes. You will need to
conduct an investigation into the client’s problems and evaluate a solution to
meet their business needs.

Overview – Pressure Hydraulics

Pressure Hydraulics is a locally
owned business that currently has three service centres; Newcastle, Toronto and
Maitland. Each service centre provides maintenance and specialised servicing of
hydraulic systems as used in cars, trucks and earth moving equipment. The
Maitland service centre also provides a specialty service to the mining
industry where two purpose built trucks go onsite to service a range of mining

business has become quite profitable in the past years and its owner, Allan
Taylor, has devised plans to expand by opening service centres at Coffs Harbour
and Gosford. Allan has future plans for other service centres along the east
coast of NSW. He also feels that the time is right to look at how IT can
support the existing business and enable his future business plans.

Allan spends a portion of each day at each service centre to monitor its
operations. This is leaving little time to continue developing his business and
he realises he will not be able to spend the same sort of time in the Coffs
Harbour and Gosford service centres.

Existing System

Each service centre operates as
an independent business, with eight technicians in the workshop (one of whom is
a workshop foreman) and one office assistant. The office assistant takes phone
calls from people requesting quotes for work or to have work done. For requests
on quotes, the office assistant looks up a hard copy of a price book (known as
The Price Book) and gives a verbal quote. Allan is unhappy with the time being
taken to update the Price Book as the office assistant is often too busy to
update the prices from the supplier invoices. Sometimes, this time delay
results in either lost sales if the price has gone down or lost income if the
price has gone up.

If a customer phones to make a
booking for work to be done, the office staff assistant writes down the details
in a journal (Works Book). Any variations to the Works Book by a customer
requesting to change a date/time results in crossed out entries. There have
been times when this has been the cause of misinterpretation as to when a job
is booked in. Other problems with the system include occasional overbooking or
slack periods for the workshop staff.

When a customer arrives at a
service centre for work to be done, the office staff member writes out a Job
Card with the customer details along with the price from The Price Book for the
job. There is sometimes a discrepancy between what the Price Book shows and
what the customer says they were quoted for that particular work. When
completed, the Job Card is passed to the workshop foreman who assigns the job
to a technician. When the job is completed, the technician initials the Job
Card and gives it back to the workshop foreman, who returns it to the office.
The office assistant writes out an invoice and collects payment from the
customer; cash, EFTPOS and credit card are acceptable forms of payment. Once
per week, the office assistant uses the Job Cards to prepare an order for stock

Allan has developed a business
relationship with several transport companies where two technicians will go to
the transport companies’ central site and service the hydraulics on a truck. As
the parts required to perform the service can be varied, a special van equipped
with basic workshop equipment and a full range of component parts is used. The
time taken for these jobs can be varied and

unpredictable. Upon returning
from such a job, the technicians will alert the workshop foreman that the job
has been completed. The office assistant is then informed and an invoice
written out and mailed to the transport company. Carbon copies are used to
track such invoices. The Maitland service centre provides a service to the
mining industry and there have been a few repeated issues with the incorrect component
parts being taken onsite for servicing the machinery. Such mistakes not only
costs a loss in terms of travel time back to the service centre to collect the
correct part, but the mining companies have very tight maintenance schedules.
Machinery has to be available and delays are not tolerated.

Each fortnight, Allan contacts
the workshop foremen and checks the hours worked by staff at the service
centre. He then prepares the payroll and writes cheques for each employee.

Each day, the office assistant
banks the day’s takings and gives the bank receipt to Allan when he makes his
daily call. Usually this will be the following day from the bank deposit. Allan
then does a reconciliation of money banked with the previous day’s takings.

Apart from the issues identified
above, Allan wants to achieve the following:
– Ensuring repeat business from
mining companies.

– Improve control over stock
ordering. A new system is required to manage this aspect of the business. The
ability to order stock for the three businesses instead of individual ordering
would ensure economies not being realised at the moment.

– Ability to quickly determine if
a required component part is in stock.

– Ability to generate an invoice
off data held within the system.

– Improved payroll process to
reduce the need to contact staff for details. Allan would prefer a system that
recorded the working hours daily and also supported staff being paid directly
through his bank system.

– Tracking customers for repeat
business. Allan wants a system that will track customers and contact them at
specified times with special offers.

– Price Book issues. A system to
have timely production of price variations to arrive at all service centres on
the same day.

– Technology to support these

After an initial investigation,
Allan has asked your group to develop a feasibility report on providing a
suitable solution for the accounting and payroll problems. At aMINIMUM level, your feasibility report
should contain the following generic sections:

Your Task:

You are required to submit a
feasibility report.

At a minimum level, your
feasibility report should contain the following generic sections:

Executive Summary

of the problem






Your appendix should also

brochures (scans), websites, photographs and prices you have researched to
complete yourassignment.

group evaluation sheet is also to be submitted by each member of the group on
Blackboard by the end of week 12. Any student not submitting this form will not
receive a mark.

Feasibility Report Marking

Executive Summary …/2
Description of the problem …/3

Solution objectives …/3
Constraints …/1

Development plans …/3
Potential solutions …/2
Recommendations …/2

Presentation, clarity of
discussion …/2
Logic and evidence of research

Total Mark…/20

Your total mark will be added to
your group presentation mark out of 5 for a total mark out of 25.

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