DESIGN AND IMPLEMENTATION OF ASSET MANAGEMENT SYSTEM

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Asset Management system plays a typical role and acts like a link between Units of

an Organization usually a corporate company. The main objective of Asset

Management system is to introduce computerized system in a widely spread

organization which can be used as a resource for private network in order to fulfill

the basic needs of an Organization like information sharing communication

document viewing as well as sharing. This Asset Management system helps in

creating and managing a data repository of the inventory pertaining to the hardware

of resources in organization.

1.2 STATEMENT OF PROBLEM

It has been discovered that in Nigeria, management of assets isn’t properly practiced

by the organisations and when practiced the chosen method is always paper based

documentation which always comes up short when this method of documentation is

subjected to hazard such as fire or some sort of manipulation from officers in charge

of documentation approvals or their superior.

In order to overcome and get rid of this shortcomings of the existing system/method,

a computerized Asset Management System is introduced to effectively manage

properties across organization, nation even personal properties while generating

revenue for the organization and monitoring assets against expiry.

1.3 AIMS AND OBJECTIVES

1.3.1 AIM OF THE STUDY

Asset Management System is a web based application which is going to have two

major components an application for capturing the inventory properties pertaining

to the users and of and a date verification system for monitoring of expired

registration of properties.

1.3.2 OBJECTIVE OF THE STUDY

Objectives of the project specifies what is expected of the system. The objective of

Asset Management is specified as follows:

 To collect and analyse data and methods of asset registeration

 Design of an interface that is intractable with by property acquirers (owners).

 To create a system that allows users to register an account and also login into

the system through a validated and verified technique.

 The system will that allows users to register their respective properties and

also pay charges (tax) on every property registered except for the first property

registered by a new user.

  The system will also monitor each property/asset registered for registration

expiration and generate logs of expired registration.

1.4 SCOPE OF STUDY

The implementation of this project will cover registration of assets/properties such

as lands, houses, buildings and automobiles while also adding a demo integration of

the Paystack payment API (Application Package Interface)

1.5 LIMITATION OF STUDY

1.6 DEFINITION OF TERMS

The major variables in this work are Asset, Management, Computerization and

System. The definitions of these variables are given below:

 Asset

This could be defined as a person or thing that is valuable or useful to something.

Banking and Finance defines asset as a thing which belongs to a company or

person which has value.

 Management

This could be defined as the act of running and controlling a business or similar

organization.

 Computerization
This word is derived from the word computerized, which means to provide a

computer or computers to do the work of something

 System

This is defined as a collection or assemblage of different part or component that

is connected together in an organized way in order to achieve a particular goal to

satisfy a particular interest. System could also defined in computer term as a

collection of procedures and devices working together as a unit.

CHAPTER TWO

LITERATURE REVIEW

2.1 What are Assets?

In this context the definition of asset is very broad. Anything that is used by an

organization in order for it to achieve its function can be considered and asset of the

organization. J Godfrey et al (2010), financial resources (capital, shares), physical

resources (buildings, furniture, machines and equipment’s), human resources

(employees, executives, managers), etc.

For this research purposes, all the resources have been classified based on their

characteristics. Some types of assets are listed below:

 Fixed Assets: Assets which are expected to have a useful life of more than

one year is considered as fixed assets. E.g. Tangible assets -Property, plant

and equipment, furniture and fixtures, vehicles and machinery. Intangible

 assets – Goodwill, Intellectual property, etc. The value of the fixed assets

depreciates over time.

 Liquid Assets: liquid assets include cash or bills that can easily be converted

to cash.

 Financial Assets: these include investment and cash at hand. These kinds of

assets could also be seen as claim against the income or wealth of business

organization; usually represented by a certificate or legal documents, which

include bonds, insurance policies, stocks, deposits etc.

However, considering the importance of financial assets in this project, it is

necessary to consider some of its characteristics and categories.

2.1.1 Characteristics of Financial Assets

 Financial assets cannot be depreciated

 They do not provide continuous stream of service to their owners

 They can easily be converted to another form, which could be substituted for

other assets. For example shares can be converted to another form of asset

desired by its owner.

2.1.2 Different types of Financial Assets

Basically financial assets are divided into four groups; namely:

Equities: This is also known as stock, which represents ownership shares in a

business firm in which it could be used as claim against the firm’s success. Equities

are also categorized into common stock and preferred stock. Common stock entitles

its holder to vote for the members of the firm’s board of directors while preferred

stock has no such privileges. Preferred Stock also known as capital stock provides a

specific dividend that is paid before any dividends are paid to common stock holders,

and which takes precedence over common stock in the event of liquidation.

Money: This is any financial asset that is generally accepted as payment of the

purchase of goods and services.

Derivatives: These are the newest type of financial assets being introduced, which

has unique financial claims. Its market value is influenced by the return on a related

financial instrument such as loans, bonds, stock etc.

2.2 INVENTORY

According to S.K Goyal, B.C Giri (2001). Inventory can be classified into three main

categories as

i Raw materials

ii Work in progress

iii Finished goods

These are considered as current assets which can be converted into cash within a

shorter period (less than one year). The turnover of inventory represents one of the

primary sources of revenue generation and earnings for the company’s shareholders

and the owners.

2.3 ROLE OF ASSET MANAGEMENT

The introduction of computer and the fast growth of information technology, has

massively improved the information need of the organization; the success of this

machine is dependent on the knowledge base. Therefore, one can be prompted to ask

aloud “what is a computer?”. University Press. (1989), defined a computer as a

device that can be instructed to carry out sequences of arithmetic or logical

operations automatically. A computer may also be described as an information

system consisting of all communication channels used within an organization and

include software and hardware. The aim of an information system to banks and

financial institutions using online automated systems is to improve the quality and

accuracy of information provided to all involved as well as assisting organizations

in compiling and reporting information as well as making work easier for

departmental heads.

Information technology has been an integral part of financial institutions since

almost four decades. According to Hewlett-Packard Journal, (1993), the world is

entering an era in which technology will literally transform every aspect of the

business, every aspect of life and every aspect of society. Since the arrival of internet

technology, financial asset management systems have taken a new shape and style

with a blend of convenience and satisfaction.

According to R.B. Chase et al. (2001), assets are the properties owned by the

company or a firm, and these assets can be classified. In computing, an asset

management system is an application or programme developed to set policies and

controls that monitor levels of asset and determine what levels should be maintained,

when stock should be replaced, and make future projections. Asset management is

one of the important key activities of business logistics.

Because of its role in business organizations, P. Schönsleben (2000) adds that asset

is one of the most important instruments of logistics planning and control. While

inventory on work in progress is linked to the production process, the fixed asset is

necessary from the standpoint of added value. According to Hill (2002), inventory

keeping and management is a significant asset in most organizations. Its effective

management, therefore, is a key task within the auspices of operations. But

controlling organizational asset is far from easy. It involves a complex set of

decisions due to the many forms of inventory taking and integration of strategic

means to keep track of all assets. In addition, inventories are the result of functional

policies within an organization as well as the short- and long-term decisions in

purchasing, operations, and sales. Bertolini et al., (2002). The optimal management

of asset is a primary objective for all the. As a matter of fact, asset management has

an important implication for both the financial and the economic performance of a

company, therefore it is widely acknowledged that an optimal asset management

system will allow companies to achieve higher profitability levels and future

forecast.

In general terms, asset management should be aimed at lowering the holding costs

through higher inventory rotation, but without triggering substantial stockouts and

backorders, caused by demand peaks and/or lead time delays.

DJ Bowersox et al., (2002) are of the opinion that inventory typical represent the

second largest component of logistics cost next to transportation. Asset management

as an important concern for managers in all types of businesses. The challenge isn’t

to pare asset to the bone to reduce costs or to have plenty around to satisfy all

demands but to keep track of the database of all company assets. There are many

reasons that motivate companies to have inventories of their fixed asset. Bloomberg

et al., (2002) have identified five reasons for holding this, namely:

a. Economies of scale: A firm can realize economies of scale in manufacturing,

purchasing, and transportation by holding inventory of their assets. Manufacturing

can have longer production runs if more material assets are inventoried, allowing per

unit fixed cost reductions.

b. Balancing supply and demand is another important reason for having an

asset inventory: If supply is seasonal, asset inventory can help meet demand when

materials or products are not available. If there is an occurrence of seasonal demand,

firms must accumulate asset inventory in advance to meet demand in the future.

c. Specialization: Asset inventory allows firms with subsidiaries to specialize.

Instead of manufacturing a variety of products, each plant can manufacture a product

and then ship the finished products directly to customers or warehouse for storage.

By specializing, each plant can gain economies of scale through long production

runs.

d. Production from uncertainties: A primary reason to have an asset management

system. Having stock on hand can reduce the risk of shortage or stock-outs situation

which might lead to lost sales and lack of reliability. Customers can possibly buy

products from competitors instead. A system to keep track of fixed assets of the

company is key.

e. Buffer interface: Asset Inventory keeping can buffer key interfaces, creating time

and place utility. Key interfaces include:

i) Supplier and purchasing

ii) Purchasing and production

iii) Production and marketing

iv) Marketing and distribution

v) Distribution and intermediary

vi) Intermediary and customers

2.4 ASSET CONTROL

Controlling assets in an organization are the activity which organizes the availability

of items to the organization. Its coordinates the purchasing, manufacturing, and

distribution functions to meet the organization's needs. This role includes the supply

of current sales items, new products, consumables, spare parts, obsolescent items

and all other supplies (T. Wild 2017).

T. Wild (2002) adds that the purpose of the inventory control function in supporting

the business activities is to optimize the following three targets:

i Customer service

ii Asset cost

iii Operational cost

The most profitable policy is not to optimize one of these at the expense of others.

The asset management system can control has to make value judgments.

If profit is lacking, the company goes out of business in the short term. If the

customer service is poor, then the customers disappear and the company goes out of

business in the longer term. Balancing the financial and marketing aspects is the

answer: the asset management system must have a fine judgment to make decisions.

The first target, customer service, can be considered in several ways, depending on

the type of demand. In a general store environment, the service will normally be

taken as “availability ex stock”, whereas in supply to customer specification, the

service expected would be delivered on time against customer requested date. The

second target, asset cost, requires a minimum of cash tied up in the asset. This should

be considered carefully since there is often the feeling that having any assets in

custody for a few periods is bad practice. Minimizing the assets usually means

attending to the major costs: very low-value assets are not considered a significant

problem. Low asset inventory can also be considered in terms of space, or other

critical resources. Where the item is voluminous, or the store space restricted, the

size of the items will also be a major consideration.

The third target, avoiding operating cost, has become more of an issue as the focus

has been placed on inventory management. The prime operating costs are those
associated with the store's operations, inventory control, purchasing, and the

associated services. The development of logistics, linking distribution costs with

inventory, has added this new set of transportation costs to the analysis.

The research done by J. Småros et al (2003) on the impact of increasing demand

visibility on production and inventory control efficiency reveals that for products

with stable demand a partial improvement of demand visibility can improve

production and inventory control efficiency, but that the value of visibility greatly

depends on the target products’ replenishment frequencies and the production

planning cycle employed by the manufacturer.

Asset management is the active control program which allows the management of

sales, purchases, and payments. According to Coyle et al (2003), the asset is a critical

factor for success in many companies.

They further stressed that asset management plays a dual role in companies. Asset

management impacts the cost of sales, but it also supports order fulfillment

(customer service). As stated earlier in chapter one, asset management is vital for

the successful operation of most organizations due to the cost inventory represents.

Effective management of asset is a major concern for firms in all industries

(Mentzer, et al., 2007). To achieve this, there is, therefore, the need for firms to

effectively and efficiently manage their assets. There are two main concerns about
asset management. First, the asset inventory management concerns the level of the

organizational services, that is, to have the right items in sufficient quantities, in the

right place and at the right time. Another concern is the cost of ordering and carrying

assets (Stevenson, et al., 2009).

2.5 SIGNS OF POOR ASSET MANAGEMENT

A certain number of signs allow for discovering poor asset management. Lambert et

al., (2001) mention the following elements in order to diagnose poor asset

management:

a. An increasing number of uncertainties.

b. Increasing asset investment

c. High customer turnover.

d. Increasing the cost of purchasing new items.

e. Periodic lack of sufficient storage space.

f. Large quantities of obsolete items (Fixed assets).

2.6 DATABASE OF AN ASSET MANAGEMENT SYSTEM

In the early days of computerization, it was normal to maintain specific files for the

individual application. Data where processes centrally in batches and there was little

or no online interrogation of the data. This approach is wholly inefficient for most
of today’s data processing systems. Supporting this G. Vossen (1991), estimated the

problems that result from organizing the data using the file system.

i. There exist high redundancies between files which result from the fact that the

information is replicated in different places, and that these replications are not

controlled by a central monitor.

ii. Inconsistencies might result from the possibilities that a program makes changes

on the files it uses without these changes being made (at the same time) by all other

programs that use the files.

iii. There exist inflexibility against changes in the application: if new actions or event

arise in the cause of time, these can be realized at a substantial expense of time.

iv. The work of many programmers involved is characterized by low productivity,

seems program maintenance is expensive: if the structure of an existing file must be

modified during its lifetime, then all application program should modify

correspondently.

v. Finally, there is the problem of adopting and maintaining standard (with respect

to coding data format etc.), which is important for exchanging data or for migration

to new operating system released, or even to a new computer system.

To overcome these problems, databases where developed. It is now common for

large organization to organize their operational data using the database technology.
The subject of data is adequately covered in many works in database technology. C.

Clifton et al., (1983) briefly define a database as a collection of data supporting the

operation of an organization. Quoting CIMA, Lucey (1991) provide a more detailed

definition.

A database is a file of data structured in such a way that it may serve a number of

the application without it structure being dictated by any one of that application, the

concept is that programs are written around the database rather than files being

structure to meet the need of particular programs.

Russel M. (1987), dealt extensively on the need for the use of a computer on such

database system like computerized clearance system. By Dimorji (2003). “At the

center of any information system is a database, which is any collection of related

information grouped together as a simple item. The term can also apply to the ways

in which information is cataloged, analyzed, stored and used manually”. Rossell M

(2005) was also of the view that without a computer, effective handling of candidate

record cannot be achieved effectively in a database, all the data is defined together

rather than each file being define separately. In fact, all the literature consulted seems

to support the fact that a database is a collection of structured data with the structure

of data being independent of any particular application.

Specify the need for a database, O’leary (1996) listed the following advantages:
i. Sharing: in an organization, information from one department can be readily

shared with others.

ii. Security: users are giving password or access only to the kind information they

need to know.

iii. Fewer files: with several departments having access to one file, there are fewer

files, therefore, excess storage or what is called redundancy is reduced.

iv. Data Integrity: older filing system many times did not have integrity i.e. a

change made in the file in one department might not be made in the file in another

department. In these days of integrated networks, the database appeared as the most

logical method for organizing the operational data of large organizations.

One may as well say that these advantages give the database the attraction over the

traditional file processing method.

CHAPTER THREE

3.0 METHODOLOGY

This chapter includes the research method and procedures prepared by the researcher

in order to develop the Asset Management and Control System. This comprises the

general analysis of the current system, the conceptualization and the research

approach used. It will also include an overview of how to treat research data gathered

by the researcher.

3.1 OVERVIEW OF THE NEW SYSTEM

The new system is designed to solve a problem affecting the manual system in use.

It is designed to be used online thereby relieving both IT departments and

departmental audit staff from much stress as experienced from the manual system.

This will do the analyzing and storing of information either automatically or

interactively. The proposed system will also have some other features like.

a. Accuracy in the handling of asset data

b. Data security

c. Fast rate of operation and excellent response time.

d. Flexibility (i.e.) it can be accessed at any time

e. An enhanced way of back up or duplicating data in pen drives or storage devices

in the case of data loss.

f. Better storage and faster data retrieval.

g. Accessibility from any part of the world once connected to the centralized system.

3.1.2 METHOD OF DATA COLLECTION

During this research work, data needed for the project was gathered from the various

sources. In gathering and collecting necessary data and information needed from the

system analyses, two major fact-finding techniques were used in this work and there

are:

i. Primary Source: This refers to the source of collecting original data in

which the researcher made use of an empirical approaches such as personal

interview and questionnaires.

ii. Secondary Source: The secondary data were obtained by the researcher

from journals, books, school library, and internet downloads. The data

collected from this means have been covered in the literature review in

chapter two.

3.2 OUTPUT DESIGN

3.2.1 UNIFIED MODELLING LANGUAGE (UML) DIAGRAM

 UML is a modern approach to modeling and documenting software. In fact,

it’s one of the most popular business process modeling techniques. It is based

on diagrammatic representations of software components. As the old proverb says:

“a picture is worth a thousand words”. By using visual representations, we are able

to better understand possible flaws or errors in this software, business processes and

to also pre-determine the output of the software.

3.2.1.1 USE CASE DIAGRAM

A cornerstone part of the system is the functional requirements that the system

fulfills. Use Case diagrams are used to analyze the system’s high-level requirements.

These requirements are expressed through different use cases. We notice three main

components of this UML diagram:

 Functional requirements – represented as use cases; a verb describing an

action.

 Actors – they interact with the system; an actor can be a human being, an

organization or an internal or external application.

 Relationships between actors and use cases – represented using straight

arrows.

DRAW YOUR SOFTWARE ARCHITECHTURE HERE

3.3 INPUT DESIGN

Considering the proposed system various input are required by the user such as

Username, password, new asset acquired including its type, value, location, date

etc. However these input data has to be specified so that the computer can carry on

necessary manipulation.

3.2.1 Input Specification for Assets Management

Data Item Data Type Length Description

ID Varchar 10 Identification number of asset

Item Char 10 Asset name

Category Char 10 Asset type/category

Description Varchar 100 Asset detailed description

Model Varchar 50 Asset Model (for real/fixed assets)

Date Acquired Datetime 9 Date asset was acquired

Purchase Price Money 8 Price of asset at time of purchase

(for real/fixed asset)

Current Value Money 8 Value of asset based on

depreciation parameter
 Owner Varchar 100 Owner of asset

Retired Date Datetime 9 Date of discontinued use of asset

3.4 FILE DESIGN

In order to achieve a well-structured and well defined software program, a proper

database schema has to be design. The gives a good insight into what the output and

the input design should and shouldn’t entail. The database for this project is MYSQL

which is a relational database where contents can be represented in table and a

schema is a proper guide to it.

DRAW YOU DB SCHEMA HERE

CHAPTER FOUR

4.0 RESULT AND DISCUSSION

To complete this study properly, it is necessary to discuss the achievements realized

in relation to the objectives of the project to answer the research questions as well as

limitations encountered during the project’s timeline. This chapter compasses the

interpretation of the finding resulting from this study as well as the discussion on the

development of the system.

4.1 RESULTS

For designing the asset management system, we operated on different stages like

graphical user interface (GUI), input data fields, Image upload bottoms, and forms.

A system for capturing assets details and information into a database and the users

authenticated via active directory system was developed successfully. It was found

out that, the system served the purpose for which it was developed. Another test was

run on one of their business branches at different locations and the result was the

same. This means Ghana Home Loans will now use the system at their various

branches were necessary to store data and keep an inventory of their ICT assets.

4.2 DISCUSSION

The proposed asset management system will provide security to information files

and data files as well as ease the burden of tracking ICT assets. This will prevent
unauthorized allocation, transfer, and modification of any asset data files. In the long

term, this will protect information integrity, availability, authenticity and access.

The design phase is the primary phase, which gives a brief idea about the different

levels used for developing an application with the help of block diagrams. The

software is designed in a user-friendly manner. So, it is simple to use for developing

a prototype of the application. The most important phase in the project is the

execution phase. The execution phase is developed with the help of the design phase.

The program is designed using razor and java applets platform, the next part is

debugging the program. We faced some challenges when writing the code, but at

last, we were successful in executing the program without errors. We used different

approaches for testing the application, which helped us to know about the

limitations. This project gave us good experience in dealing with the information

and data security issues in theoretical as well as in technology. We did the project in

a satisfactory level with the help and good guidance from our supervisor Emmanuel

Sam.
REFERENCE
J Godfrey, A Hodgson, A Tarca, J Hamilton…. (2010). Accounting theory.
researchdirect.westernsydney.edu.