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Systems Design Project Assignment
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Table of Contents
List of Figures...........................................................................................................................iv
Introduction................................................................................................................................1
Project Overview....................................................................................................................1
Value to the Business.............................................................................................................1
Planning......................................................................................................................................2
SDLC Process........................................................................................................................2
Project Identification..............................................................................................................3
Methodology..........................................................................................................................4
Business Requirements..........................................................................................................4
Work Breakdown Structure....................................................................................................4
Analysis......................................................................................................................................5
Supporting Framework and Models.......................................................................................5
Possible Issues........................................................................................................................6
Presentation Outline...............................................................................................................6
Use Case Diagram..............................................................................................................6
Activity Diagram................................................................................................................6
Sequence Diagram.............................................................................................................7
Class Diagram....................................................................................................................7
Entity Relationship Diagram..............................................................................................7
Design........................................................................................................................................7
Hardware and Software Requirements...................................................................................7
Existing Infrastructure........................................................................................................7
Hardware Needs.................................................................................................................8
Software Needs..................................................................................................................8
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Information System Design....................................................................................................9
System Architecture...........................................................................................................9
User Interface.....................................................................................................................9
Implementation........................................................................................................................10
Implementation Strategy......................................................................................................10
Advantages and Disadvantages........................................................................................10
Conclusion................................................................................................................................11
Summary..............................................................................................................................11
Future Considerations..........................................................................................................11
References................................................................................................................................12
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List of Figures
Figure 1: Work Breakdown Structure........................................................................................5
Figure 2: Use Case Diagram......................................................................................................7
Figure 3: Activity Diagram........................................................................................................8
Figure 4: Sequence Diagram......................................................................................................9
Figure 5: Class Diagram...........................................................................................................10
Figure 6: Entity Relationship Diagram....................................................................................11
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Introduction
Project Overview
Starbucks is a global leader in the coffeehouse business, renowned for the taste,
variety, and quality of their beverages, snacks, and pastries. The company is one of the most
diverse in terms of location, as it operates more than 30,000 locations worldwide, serving
millions of customers and employing many daily (Kim & Park, 2021). Given the size and
distribution of all the coffee joints spread globally, the company requires an efficient
inventory management system to ensure the smooth operation of the materials and the
distribution of finished products without delays, stockouts, and surpluses. The company
currently relies on a manual inventory management system that tracks and reports inventory.
This can lead to errors that cost the company's quality, time, and efficiency.
Therefore, the project focuses on automating Starbucks' inventory management
systems, which should significantly improve the efficiency and accuracy of the inventory
tracking mechanisms to ensure the company maintains clean records in stock management,
reducing surpluses and stockouts. The research's objective is to develop a comprehensive
system that would streamline the inventory process where human error would be reduced
with real-time inventory management. Therefore, Starbucks can enhance its overall
operational efficiency and reduce costs by implementing the new inventory management
software, which manages stock levels in real time, ensuring a balanced stock across multiple
locations.
Value to the Business
The inventory automation system would significantly improve operational efficiency
and accuracy in managing inventory through the following key areas: Firstly, the systems
would optimize supply chain operations by automating tracking and ordering, thereby
aligning inventory levels with real-time demands across all global locations. This would
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streamline the process, reducing the possibilities of stockouts and surpluses (Mweshi, 2022).
Secondly, a real-time inventory tracking system would provide real-time updates about the
inventory, triggering informed and accurate decision-making when helping the stores manage
their inventory levels. The data will enable the stores to make data-driven decisions, which
will increase accuracy, thus reducing errors and waste due to surpluses.
Starbucks can significantly reduce costs by eliminating avoidable holding costs and
streamlining the inventory management system to ensure no delays, stockouts, or surpluses.
Automation would also reduce manual checks and regular stock edits, which, in return, would
significantly cut down on labor costs, associated risks, and human errors. Furthermore,
Starbucks can save costs by eliminating errors and improving accuracy through automation.
The company will do away with the expenses incurred through surpluses, holding costs, and
delays due to stockouts. In summary, implementing an automated inventory management
system will enhance operational efficiency in the inventory sector of Starbucks, reducing
costs and improving the overall customer experience due to quality and better services
(Ullagadi, 2024). This way, Starbucks will have one less problem to focus on and invent the
rest of the time and resources in marketing and product development to conquer the market
further.
Planning
SDLC Process
The system development life cycle is a structure used in software development to
develop detailed and clear expectations and requirements of the software to ensure nothing is
left out and overlooked. The chosen approach for this study, therefore, would be Agile
methodology. Agile methodology is a comprehensive approach to development that heavily
emphasizes collaboration flexibility, making it an ideal choice for managing complex projects
with significant risks and uncertainties (Edison et al., 2021). Considering the nature and scale
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of Starbucks's inventory management system, it is, therefore, the best approach to ensure all
the required details of the project are addressed by the time the project is completed. This
approach simplifies complex projects by dividing them into smaller, manageable segments,
focusing on one section at a time to enhance operational efficiency. In this case, the SDLC
phases would be applied as follows: The first step would be the planning, where the scope of
the project would be defined and the necessary resources required mentioned, including the
potential risks and uncertainties. The second phase involves gathering detailed business
requirements to identify workflows, system functionality, and major challenges that could
impede the project's successful completion. Thirdly, during the design phase, which oversees
system development and architecture, we generate interfaces and workflows, specifically
UML visualizations, to establish a clear structure and address all necessary areas. And lastly,
the implementation phase is where all the hard work is now put together to ensure the project
is built, tested, and deployed to measure performance, compatibility, and efficiency.
Project Identification
The project will mainly focus on designing and implementing an automated inventory
management system for Starbucks. The project's primary goal is to streamline inventory
operations by replacing manual ones with computerized software that would provide real-
time inventory updates. The key objective is to automate the inventory across all Starbucks
locations. They were additionally reducing stockouts and surpluses in inventory through
driven decision-making through the software, streamlining the ordering process to ensure
automated restocking’s, and, lastly, improving supplier communications through automated
communication through the system (Vaka, 2024). We set these objectives to ensure that
Starbucks operates more efficiently after the project's implementation, reducing costs and
enhancing customer quality.
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Methodology
We chose the agile methodology for the project due to its practicality and scalability.
The method also allows for flexibility in case of any risks and uncertainties. The technique
allows the development team to deliver functional sections and components of the systems in
small and manageable bits and prints, ensuring constant feedback between the development
team and stakeholders. The main advantage of the agile method is that it stores incremental
steps toward the project's completion.D The agile method enhances stakeholder cooperation
and collaboration, fosters flexibility, and accommodates adjustments for efficiency.
Business Requirements
The business requirements for the automated inventory management system include a
real-time tracking inventory system that monitors inventory levels across all Starbucks
branches globally. Furthermore, to streamline the supply chain process and minimize delays,
longer lead times, and stockouts, we should facilitate automated restocking (Niaz, 2022).
Moreover, the business would also require supplier notification as part of the communication
sector to ensure they are automatically notified when there is a need for restocking with the
correct details and specifications. In summary, the business requires the system to be easily
compatible and integrated with the existing system to ensure a smooth transition and prevent
any data loss during the process.
Work Breakdown Structure
The work breakdown structure plays a crucial role in organizing tasks and clearly
defining their completion dates. In a complex project such as this one, it is crucial to maintain
discipline in the systematic execution of the project using a work breakdown structure. In this
case, the work breakdown structure would include all the phases of the SDLC approach, such
as planning, analysis, design, and implementation, showing the timeline. The phases would
be essential to guide the project from the beginning to completion, and they would also be
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used as a forecast to get informed, data-driven decisions on the duration of the project and all
the aspects that are affected by time.
Figure 1: Work Breakdown Structure
Analysis
Supporting Framework and Models
Essential frameworks and models support the analysis sections of the project and help
make sense of the plan. We will use the Unified Modeling Language (UML) to create case
modeling structures and diagrams. This will provide a comprehensive explanation of the
system's functionalities and the steps necessary for it to execute specific tasks. These models
are essential in mapping the entire process, roles, and functionalities to ensure that nothing is
overlooked and everything checks out as it should. Starbucks will be able to visualize the
entire automation program with the designed UML and use case diagrams from the study,
which will make it easier to identify errors and sections that require additional functionalities.
Possible Issues
Change is most of a problem; this is because it is uncomfortable, and many people
would rather sit in their comfort zone. Many employees may prefer the manual approach and
want to keep it that way, making software implementation difficult. Another significant
problem arises in the form of data migration challenges. Compatibility issues may result in a
lack of a reliable method for smoothly transferring physical data into the software or existing
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technologies. Finally, given its novelty, the system's integration may necessitate a significant
investment of man-hours and resources. Training and workshops are necessary to ensure that
everyone handling the software understands its navigation and their responsibilities. Knowing
the technology is crucial to the team's willingness to implement it, which will boost project
efficiency.
Presentation Outline
There are a total of five diagrams, and each one uniquely contributes to meeting the
project's business objectives by streamlining the inventory system through automation.
Use Case Diagram
This diagram represents the key user interactions with the automation system. These
include inventory tracking and automated restocking features for streamlining supply chain
operations. The use case diagram's primary goal is to incorporate all user needs and
requirements into the design.
Figure 2: Use Case Diagram
Activity Diagram
As the name suggests, this diagram is a map of all the sequence steps in the
workflows that power the automation system; these steps include restocking, identifying
stockouts and surpluses, and singling out issues with the system and areas that require
improvement.
Check
Inventory
Levels
Stoc<
Below
Threshold?
Generate
Purchase
Order
Emergency
Order?
lyes
‘Send
Priority
Order
Schedule
Delivery
Update
Order
Status
Alert
Store
Manager
Find
Alternative
Supplier
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Figure 3: Activity Diagram
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Sequence Diagram
The sequence diagram visualizes the chronological flow of system messages between
components. This ensures efficient coordination between the different working modules, such
as the point-of-sale integration and the inventory tracking system. This diagram ensures that
all the messages the systems would require are listed in their logical sequence for practicality
and functionality.
Figure 4: Sequence Diagram
Class Diagram
The class diagram is a complex matrix that represents the system structure and all the
sections that power its functionalities. The class diagram includes the following sections:
inventory items, orders, and supplies. They significantly contribute to the database design and
integration, guaranteeing the accounting of all software's structural components according to
their respective functionalities.
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Figure 5: Class Diagram
Entity Relationship Diagram
Unlike the other diagram, this one defines the relationships between the individual
database entities. This includes the inventory items, the individual suppliers, and the required
orders. Therefore, the sole objective of the diagram is to ensure efficiency in data
management, given that inventory management solely relies on data, thereby enhancing its
reliability and accuracy.
Figure 6: Entity Relationship Diagram
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Design
Hardware and Software Requirements
Existing Infrastructure
Starbucks currently operates an advanced point-of-sale system together with
enterprise research planning software. Most of their inventory, sales, and company efficiency
needs are met with these tools. However, to ensure a smooth transition with the proposed new
inventory management systems, both software and hardware requirements are necessary. The
infrastructure upgrades, therefore, include cloud storage and network bandwidth strong
enough to enable real-time tracking, inventory management, and communications across
different Starbucks locations.
Hardware Needs
To ensure the smooth transition and operation of the inventory management system,
the following hardware requirements are necessary. To begin with, barcode scanners are
required for efficiency in inventory tracking. However, RFID devices can replace them,
offering the hardware capability to actively track inventory levels. Additionally,
workstations, computers, or tablets would be needed to give the warehouse workers an
interface to interact with the inventory management software to monitor and accordingly
update the records. Furthermore, to host the software and all the inventory information, the
company would require servers to facilitate real-time tracking, communication, and data
sharing across different Starbucks locations with their suppliers. The company would solely
use the services for data storage and processing the software's cloud functionalities.
Software Needs
The inventory management system is software, and checks are the first software
required for the project. We will develop a custom inventory management system to automate
warehouse management tasks like stock monitoring and supplier notifications. This system
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will ensure that Starbucks stations consistently maintain the required stock, thereby
preventing stockouts and surpluses, both of which can be financially burdensome for the
company. Additionally, the company needs database management tools like MySQL to
manage the backend data in the inventory management software. Finally, the company needs
to streamline the integration of the inventory management system with the existing
technology they use for inventory management. In this case, they would need a way to
smoothly and efficiently transfer data from the ERP and POS systems that the company
currently uses to the inventory management system.
Information System Design
We will meticulously design the software to incorporate all the necessary
requirements into its overall layout. There are different sections of the design, including the
software's system architecture and the user interface design, which will consist of the buttons
and functionalities that users would be interacting with daily.
System Architecture
This project requires a cloud-based solution to ensure the implementation is scalable
and flexible. This ensures the project can coordinate across different Starbucks locations to
report and update the inventory accurately. A client-server model is recommended for the
system, and this is to ensure the stores are seen as clients gaining access to a centralized
inventory database hosted on a secure and regulated cloud server.
User Interface
We would simplify the system's front end to facilitate a seamless transition for the
employees. The interface design would take into account the needs of store managers and
workers, incorporating the existing ERP features for a seamless transition. The key features
expected in the software's front end include the following: The workers will have access to a
dashboard that presents real-time inventory levels, socks, and supplier notifications. We also
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need an inventory search function to allow employees to quickly navigate the database and
locate items using barcodes or RFID technologies. Finally, order management is crucial as it
empowers managers to approve each restocking order prior to the automation process
restarting.
Implementation
Implementation Strategy
The implementation strategy recommended and implemented for this project involves
phases. The approach prioritizes flexibility by dividing the project into stages, allowing for a
reasonable use of resources at each stage of the rollout. We will conduct a pilot program
before the mass implementation, testing the product on a single branch to observe its impact
on the business and gather feedback on areas for improvement in the project's transition and
performance. Once the pilot program is successful, the rest of the locations will be cleared for
implementation, as the team will be aware of the challenges, risks, and uncertainties that
should be considered to achieve a smooth implementation that fosters efficiency in meeting
the program's objectives.
Advantages and Disadvantages
This implementation approach primarily distributes resources evenly, addressing each
stage individually. Therefore, mitigating risks and even identifying them before they threaten
the project and resolving them is easier. Moreover, the pilot launching program enables
testing of the projects, thereby collecting feedback on the user experience and functionality.
This facilitates the developers in gathering input and addressing issues before the launch. On
the contrary, the implementation approach also has challenges, such as the complex
coordination required for both phases to be addressed systematically to ensure maximum
output is achieved. Additionally, the systematic process takes longer and requires more
resources and person-hours than the full implementation. However, with the project's
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sensitivity, nature, and scalability, the implementation approach is essential to minimize risks
and uncertainties and enhance a smooth transition in the project.
Conclusion
Summary
In light of these findings, the project focuses on implementing inventory management
system software for Starbucks using the System Development Life Cycle approach. The
company's outdated use of PR systems, which lack real-time tracking in inventory
management and result in multiple stockouts and surpluses, has necessitated the project. The
project's planning, analysis, design, and implementation will streamline Starbucks's inventory
tracking capabilities and functionalities to reduce costs and ascertain quality delivery to its
customers. This process will thrive as it eliminates human error, miscommunication, and
other challenges from an outdated and offline method that does not offer real-time data
tracking. We will use tools like UML diagrams to plan the entire project and make sure we
consider everything. To conclude, the new inventory management system software will
significantly impact Starbucks by providing automation and real-time insights, which will be
used to make informed and data-driven instructions regarding the company's inventory,
leading to accuracy and operational efficiency.
Future Considerations
The team must regularly check in and gather feedback to tailor the software
development to the clients' space needs. Therefore, future steps are necessary to update the
software to meet their needs, including integrating advanced AI features for forecasting to
further enhance accuracy and operational efficiency. The project can also include supplies for
smooth order fulfillment and system integration. Starbucks should constantly review its
technology to meet the constant demands and advancements as it continues to grow and
advance.
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References
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that take into consideration the characteristics of modern consumers—a study
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Meilani, T., & Ellitan, L. Supply Chain Management Processes and Competitive Advantage:
The Case of Starbucks.
Niaz, M. (2022). Revolutionizing Inventory Planning: Harnessing Digital Supply Data
through Digitization to Optimize Storage Efficiency Pre-and Post-
Pandemic.DBULLET: Jurnal Multidisiplin Ilmu,D1(03).
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Revolution.DJournal of Economics, Management and Trade,D30(9), 78-89.
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chain strategy.Dthe International Journal of Managing Value and Supply
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