The organization that I have chosen and wish to use for my study is "The Fun drive Company" which was established in the year 1987.

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Introduction

The organization that I have chosen and wish to use for my study is “The Fun drive Company” which was established in the year 1987.It has been running successfully all over the U.A.E. The company deals with spare parts, tyres and batteries. It has earned the reputation of being one of the best companies in the U.A.E. It has its warehouse in Jumeriah and its office is in Deira, Muraqqabat Street. The Chief Executive Officer and the Managing Director manage the company.

There are three departments in the company and there are different managers appointed by the C.E.O to manage the Purchases Department, the sales department and the Stock Department. Each of these departments have 20 employees working under them. The organization was a Private Limited Company initially but recently it converted into a Public Limited Company. The C.E.O has delegated certain tasks to the employees that is given them a certain authority to perform particular tasks.

Working Of The Existing System

The company purchases its stock from its wholesalers who in return send the company a Performa invoice stating the quantity of the stock and the price, the company accepts the invoice and also informs the wholesalers about their method of payment i.e. T.T. or L.C. The stock is then delivered to the company and is stored in the warehouse.

        When a dealer requires goods it places an order to “The Fun Drive Company” through fax or phone. In special cases the company sends its salesman over to the dealers and the salesman gives the dealer a form containing details of the goods provided by the company.

Forms are typed out, with a help of a typewriter, and these forms are sent, through fax to the dealers who have placed their orders. The dealers then fill out the form, which inquires about their name, address, and contact number, quantity of items required and their method of payment whether by cash or cheque. After the dealer has filled the form it is faxed back to the company and the company retains these forms for further reference and security reasons. These forms are also retained as records of the dealer so that if the dealer orders again from the company his past dealings with the company can be looked up for assurance of authenticity.  After the dealer has confirmed the order a delivery van is sent to the dealer with the dealers good and an invoice stating the total cost of the goods. The dealer then signs the invoice and pays for the goods ordered. If the payment is made by cheque it is transferred directly to the company’s bank account.

There are many departments in the company such as the Purchases, the Sales and Stock departments, which work manually. There are several tasks to be performed in the organization. There are many ledgers maintained which consist of the information about the stock in hand, the expenditure of the company and the supplier’s information. There is a large number of staff assigned to perform particular tasks.

For the purchases department the employees’ record information about the item required, quantity, date of purchase, the price and the item code. This information is delivered to the suppliers who in return supply these goods to us. The records of the suppliers and the item details are recorded in the ledgers under different categories. The stock report is checked for stock and if it goes below the re-order level more stock is purchased from the wholesaler.

The Sales Department stores data on the items purchased by customers. It stores the customers’ id, name e.t.c. If the customer is a regular and loyal customer he is give a certain percentage of discount and his purchases are recorded with the required data in his respective files.

Problems with the existing system 

The system of work in “The Fun Drive Company” is the conventional manual system, which is considered a primitive mode of work especially as we advance towards the 21st century. In this system there are many people hired to take care of every aspect of the work done. Due to the present system there are many problems encountered. The employees require a lot of time to hand write all the details of the dealers and suppliers into the ledgers. They have to work over time to verify the data entered A lot of staff is also required to enter data in the ledgers and this results to a lot of confusion as “Too Many Cooks Spoil The Broth”.

 A lot of time and energy is wasted looking up previous records of the dealers. As efficiency was the top priority of the company it is now being reduced because the employees are unable to cope up with the pressures of the work. Thus this reduces employees’ motivation and job satisfaction. As the system is badly organized it is affected economically and financially.

Also a lot of errors are also made during data entry and this may result in unnecessary confusion and problems, especially when payments are made this may cause a dent to the company’s public relations. Also a lot of storage space is required to hold the numerous ledgers containing information about suppliers and the dealers.  

Methods of improving the existing system

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Without any major changes to the system certain modifications can improve the working system and jobs can be done Funer, and solutions to the problems of staff members can be overcome. The existing system could be improvised by the following ways:

  • Division Of Lab our

 There could be division of lab our as each staff member can specialize on one particular task rather than doing different tasks and wasting time.

  • More Staff Could Be Employed

 If there are more people employed the workload may decrease. Fewer errors would be made. This would mean that additional staff ...

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