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IHF'I'Esm - Accounting Infennatien Systems Assessment 2 s 3 Narrative Dveruiew - Pressure Hyd raulits Pressure Hydraulics is a locally owned business...



1. Create a logical data flow diagram of the current business system.

2. Create a logical data flow diagram for the new business system

3. Create an E-R Diagram of the system entities for the proposed new payroll and revenue systems, clearly showing the relationships between the entities


IHF'I'Esm - Accounting Infennatien Systems
Assessment 2 s 3 — Narrative Dveruiew - Pressure Hyd raulits Pressure Hydraulics is a locally owned business that currently has three service centres; Scone, Eastwood
and Wollongong. Each service centre provides maintenance and specialised servicing ofhytlraulic systems as
used in trucks and earth moving equipment. The Scone service centre also provides a specialty service to the
mining industry using purpose built trucks to service a range of mining equipment onsite . The business has become quite profitable in the past years and its owner, Allan Taylor, has devised plans to
expand by opening service centres at Cofl's Harbour and Goshrd. Allan longer term plans for other service
centres alongtlte eastcoast ofNSW and nationally. He feels thatthe time is right to look at howIT can support the existing business AND enable his fitture business plans. Currently, Allan spends a portion of each week at each service centre to monitor its operations. This entails a
great deal of travel and is leaving little time to continue developing his business. He realises he will not be
able to spend the same sort of time in the Col'fs Harbour and Gosibrd 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 oflice assistant. The oflice 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
beingtakento updatethe Price Book astheofliceassistant is ofien toobusy toupcbitetheprioll fromthe
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. Ifa customer phones to make a booking forwork to be done, the office stafl' assistant writes down the details
in ajournal {Work Book}. Any variations to the Works Book by a customer requesting to change a datel‘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 stafl'. When a customer an'ives at a service centre fiir work to be done, the ofiice 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
discrepancybetweenwhatthePrice Book shows andwhatthe customersays theywerequmedforthat particular work. When completed, the Job Card is passed to the workshop foreman who assigns thejob to a technician. When
the job is completed, the technician initials the Job lCard 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, EFTP'DS and credit card are acceptable forms of'payment. Unceper week, theoflice assistant uses the Job Cards toprepare an order fiir stock replacement.


Allan has developed a business relationship with several transport companies where technicians are able to
go to the transport companies" central site and service the hydraulics on their trucks. 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 thesejobs can be varied and unpredictable. Upon returning from
such ajob. the tecluticians 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 Scone 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 oftravel 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 checks the hours worked by staffat each service mm with the Foreman. 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 days takings. Changes Requlrod Apart fi'om the issues identified above, Allan is looking to achieve the following:
- Ensuring repeat business from mining companies.
- Improve control over stock ordering. A new system is required to manage this aspect ofthe business. The ability to order combined stock for the
three businesses instead of individual ordering would Ilsure economies not being realised at the moment. - Ability to quickly determine ifa required component part is in stock at any branch. - Ability to genenite an invoice completely from data held within the system. - Improved payroll process to reduce the nwd to contact stafi' fordetails. Allan would prefer a system
that recorded the working hours daily and also suppormd staff being paid directly through his bank
system. - Trackutg customers for repeat business. Allan wants a system that will track customers and contact them at specified times with special ofiers. - 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 changes.

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