Analysis of ordering system for a fitness club.
TASK 2:
ADMINISTRATION
By: SUDHANSHU MOHANTY
Analysis of ordering system
When a member first enters the fitness club and wants to work out, the staff asks for the membership card, they identify the number from their notebook (which consists of the members name last name alphabetically and their membership number). Then the staff asks the member to fill out the table on their record book consisting of the Members name, membership number, time checked in and their signature. When the members finished, they sign-out and record their time on the book. Also the staff will collect the members card, and they give back to the member when they're done with they're work out.
Membership Form
Personal Information
Last Name: .......................................................................................
First Name: .......................................................................................
DOB: Day.................Month.................Year.................
Sex: Male Female
Home Telephone: ...............................................................................
Mobile: ...........................................................................................
Home Fax: .......................................................................................
Address: ..........................................................................................
District: ..........................................................................................
HK ID card # .....................................
Email Address: .................................................................................
Credit Card Information
Card No. : ..........-..........-.................
Expiry Date: Day.............Month...............Year................
Date: Day.............Month...............Year................
Signature: .....................................................................................
For Staff Use Only
Membership Number:.................................... Signature..........................
Fitness Course Form
Last Name: .......................................................................................
First Name: .......................................................................................
HK ID card # ..................................... (.....)
Home Telephone: ...............................................................................
Membership Number:....................................
What type of work do you do? : ...............................................................
What Course would you prefer?
Aerobics Skiing Jogging Fitness Holiday Swimming
Beauty Course
Signature........................................................................................
How the information is recorded and kept
If a customer wanted to join Exercisco Fitness Club, they would firstly have to complete the membership giving their personal information and their signature, then the staff at the fitness club would have to approve it and sign it showing it is alright for the customer to become a member, then this membership form is kept in a knew folder created for the member and stored in a cabinet, the file is labeled with the member's Last Name then First Name the staff then give the member a card which they write their name and membership number. After the customer has become and member and wants to take the fitness course which are supplied, they have to fill in the Course Form, which consists only of their name HK ID card number, phone number and their membership number, this is then checked by the staff to see what course the member would like to join, the member can hire a personal trainer if they prefer or work in group sessions. The Course form is kept in a different cabinet depending on the type of course chosen, in a file. But also there are stability test after each 2-3 sessions of the course to show if there are any signs of improvement from the member, these information sheets are kept with the course forms. As seen now the forms are kept in cabinets which are not safe, so it is really easy to vandalize the member personal information and course information.
Input
Processing
Output
Customer's Personal Information
Record the information on the member form and file it.
Customer gets membership and membership card
Staff cut out pictures from magazines, supporting a fitness club
They stick it on large posters, and make different sizes
Posters are produced different sizes but black and white.
Staff send order for new equipment if old is damaged or un-repairable
Supplier receives order and notes down the cost and the amount
The Fitness Club receives the stock of equipment and bill by mail.
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Input
Processing
Output
Customer's Personal Information
Record the information on the member form and file it.
Customer gets membership and membership card
Staff cut out pictures from magazines, supporting a fitness club
They stick it on large posters, and make different sizes
Posters are produced different sizes but black and white.
Staff send order for new equipment if old is damaged or un-repairable
Supplier receives order and notes down the cost and the amount
The Fitness Club receives the stock of equipment and bill by mail.
Member gives information about which course preferred and to hire a trainer
The Fitness Club records the information and files it in a different cabinet from the personal information
A trainer is hired and the Member starts the course through the X number of weeks or days
Receipts
There are no receipts because the fitness club records all the times that members come in and out on the record book.
Stock Control
In Exercisco when a equipment is damaged or is not repairable then the Fitness club orders knew equipment by communicating with the supplier by telephone and notifying them out what kind of equipment is needed and when it is needed by. The staff will note down when the stock arrives and if it has arrived. But the bad point is that they can't pay the supplier or the supplier can't give them the bill straight away they have to either mail it or go straight to the supplier and give it to them face to face. Another bad point is that if they some how loose the paper where they had noted down the costs and the amount, and then they wouldn't be able to know how many their supposed to receive, and the cost of all of the equipment.
People Involved
The people involved with Exercisco fitness club are the staff firstly, then the suppliers. When talking about staff there are different types of staff because there are different jobs required for the fitness club. So there is a staff member at the counters noting down the members joining the members who check in and out to work out, the staff at the counter should be good at writing so the writing is clear and readable. Plus the staff member should be nice and friendly. And should have a good knowledge of where to put personal information and fitness course information. There is also a staff member taking care of the members he will look to make sure all the members are safe, sometimes more than one person observing, he is required to be strong so he can help members, and required to be good at First Aid. The supplier is an important source to Exerciso Fitness club because is it required to send any equipment when it is ordered from the Fitness club.
Analysis Finances
Record of Sales
In Exercisco Fitness Club, there are fixed costs for working out in the club. In the last 4 months of the business the sales have been recorded by each week so the business can get a clear understanding of how the sales have been going on and what downfalls there are. They record all the sales in a week onto a table, they do this by calculating the total number of members used the equipment and how many hours they had stayed in the club and how much the total cost is for that day, they combine this into the week and plot it on a paper. They keep this paper in a separate cabinet which is locked. After they have recorded the sales per week they then combine this into a month on a different table, they do the week sales because it shows more accuracy of which days there is a different number of sales for some specific reason.
Table of Sales per Week for the last 4 weeks on the first Month
No. of Weeks
No. of Members
No. of Hours
Total Cost
st Week
30
63
$1260
2nd Week
33
71
$1420
3rd Week
43
88
$1760
4th Week
40
81
$1620
TOTAL
46
303
$6000
Table of Sales for the last 4 months combined in one table
No. of Months
No. of Members
No. of Hours
Total Cost
st Month
46
303
$6,060
2nd Month
43
300
$6,000
3rd Month
39
314
$6,280
4th Month
50
280
$5,600
TOTAL
578
197
$23,940
Expenses
There are specific costs which the fitness club has to pay for, which are variable and fixed cost. Variable costs are costs which things needed, so if they business needs more pens or pencils then it will order them. Whilst fixed costs is costs like renting the fitness club area, so even if the fitness club is not receiving enough profit or cash flow they still have to pay the rent. Some other fixed costs are electricity bill, staff salaries per year, and also Exercisco fitness clubs hires mechanics to come in and check each equipment to make sure there is no damage so that the member will not be hurt in any way. Some variable costs are new equipment; this is a variable cost because the club will only purchase new equipment if the old is damaged or un-repairable. Also stationary which is used by staff to note down on paper and use pens etc. But the wages of staff is also a variable cost because they are paid monthly wages depending on how the business has done but the overall yearly wages is kept the same.
Forecasting of Profit/Loss
Exercisco currently records its Profit and Loss by doing a Cash Flow forecast; they can use this to predict if there is going to be any profit or loss in the net 12 months. The fitness club hires an accountant from an agency to produce the forecast, and show the fitness club, and then the fitness will know when they need to get an overdraft from the bank. An overdraft is a loan from the bank, but it is only borrowed when there is an emergency, and the club can tell the bank after reading the cash flow forecast when they need the overdraft. And an overdraft is a loan which is more than what is in our bank account, plus there is a much higher interest rate.
How the information is currently recorded and where it is kept
Exercisco first gathers all the bills received from renting agencies and the bills for the electricity from other electric supplier companies. Then the club gathers puts together the table about the record of sales and makes sure it is correct by counting the money received from the member. When the fitness club has produced the forecast sheet and all the fixed cost and variable costs, then they gather it together and produce a large file containing all the information related to finance. Exercisco first gathers all the bills received from renting agencies and the bills for the electricity from other electric supplier companies. Then the club gathers puts together the table about the record of sales and makes sure it is correct by counting the money received from the member. After all the information is gather into one file, it is stored in desk draw under the counter, this draw is locked, but can be very easily opened, so the security for this is not very good considering there are important facts and predictions about the business.
People Involved and their requirements
There are 2 types of people involved, the first one would be the staff member or manager who records the sales and expenses this person is required to properly record it on to a book when each member pays for the time they have spent using the equipment. The second type of person would be the accountant who is hired by the club from a firm, this accountant is required to collect the sales and expenses from the staff member and predict a cash flow forecast and show the manager, so they can have a clear knowledge of where there has to be action take.
Input, Processing, Output
Input
Processing
Output
Accountant is given information about sales and expenses
Accountant constructs an cash flow forecast
The cash flow forecast is shown to the club and there is an understanding of when to take action
Analysis of Advertising
How the business advertises
Exercisco Fitness club uses 3 different types of ways to advertise. Firstly they use newspaper to advertise they do this by writing what they want on the ad in the newspaper; they do not do this by computer because they don't have the technology yet. Another way the advertise is by cutting out pictures and hiring an typist to produce written work and produce a brochure suitable for their business, they also hire people to give these brochure type advertisements out on the streets, yet they know that people barely read them and normally just throw it in the bin, or on the floor, so this is bad for the environment because it creates litter. And the last way the club advertises is by hiring a company to create posters and stick them around building walls so people become aware of it, yet this is also harming the environment and barely people read it, considering Hong Kong is a very busy place and people have no time to read a poster on a wall.
People Involved and their requirements
There is only really one type of person involved and this would be the staff because they are the ones who create the poster, but there is also the poster hire company and they have requirements, these are that the poster is suitable for the business but they should also be attractive so people would be able to read it. Also the poster hire company is required to create the poster in the amount of time allocated to them and they should send the bill for the cost of their work only after the work is complete.
Analysis of Communication
How the business communicates
Exercisco communicates with its members and the supplier mostly by telephone. But for members the club is more likely to send a newsletter by mail instead of calling up, but if the customer hasn't paid the bill for their working out for a long period of time then the club will attempt to communicate with them vocally. But for suppliers when making an order the club sends a letter by mail with all the demands and the supplier most likely will reply with the date it will arrive and the cost to be ready when the equipment is delivered. These ways used by Exercisco are accurate as in they state the exact information needed for the member or supplier but it is time consuming whilst technology can increase the speed much more rapidly.
People Involved and their requirements
There are 2 types of people involved in communication; these are the club itself and the suppliers. The club is required to send newsletters to all its members about any up coming events or any new course, equipment arriving etc. The club should also be required to send it to the right addresses so the mail doesn't get lost. The supplier is required to reply to the mail order received by the club.
Flow Diagram
Areas to develop in terms of ICT
Problems
Improvements
Orders
* The security for the membership forms is quite low
* The members have to come to the fitness club to become a member
* The club might not be able to send its orders to its suppliers
* The suppliers might not be able to receive the orders and there might be a delay
* The club could use database to keep all the member's personal and course information
* They club can use email to send orders to the suppliers, this is faster and more efficient
Finance
* The record of sales could be wrong because of miss calculation
* The source where the information is recorded might be lost
* The staff might be able to give the right sales/expenses to the accountant to create a forecast
* The security for the information is very low
* They could use excel to figure out the record of sales and plot suitable graphs to show any profit or loss
* This would prevent them from hiring an accountant and saving money from this
* The security is high
Communication
* There might be a bad connection on the phone line so the orders to suppliers wouldn't be clear
* The letter order may not reach the supplier in time for the equipment to be sent and received
* The Club might not be able to complete all its newsletters for members
* The most reliable way to communicate is by email, because they can send straight and exact orders instantly
* They club can send email newsletters to its members, which would save paper and time
Advertise
* Normally people ignore all the brochure and poster type advertisements, because Hong Kong is a busy place
* People normally throw brochures on the floor, producing litter and harming the environment
* The best type of advertisement would be to use the internet
* The club could save time by creating adverts on Coral Draw/ and putting it on their website.
Sudhanshu Mohanty 11 TANG
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