EBUS604 Page 1 ULMS
Group Project, EBUS 604
Design an e-Business System for a Bicycle Company
Lateness Penalty: Five percentage points shall be deducted from the assessment mark
for each working day after the due date up to a maximum of five working days;
however, the mark will not be reduced below the pass mark for the assessment (50%).
Work assessed at below 50% will not be penalised for late submission of up to five
working days. Work received more than five working days after the submission
deadline will receive a mark of zero.
Cheating: You are encouraged to discuss your general understanding of the exercise
with colleagues of other groups, but, you must write up your project report based on the
work of your group only. University regulations about cheating – especially
COLLUSION and PLAGIARISM (copy from sources without acknowledgement) –
Submission of the project:
The project report must be word-processed and dually submitted, Electronic through
TurnitIn on Vital and Hard copy to Student Support Office.
Submission Data: 20th Nov 2019
Assessment. **The group project represents 50% of the total mark of the module.
The project will be assessed based on three components:
1) Project report:
• Joint Section of the project report 70%
• Individual Section of the project report 30%:
2) Project management.
Reports of project meetings which recording joint group work activities will be
submitted for each meeting. Each group should clearly record tasks assigned to and
completed by each group member for the project in each meeting report. Students
MUST be fully engaged in and contribute to the collaborative work in groups.
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Design a prototype e-business system
The purpose of this group project is to design an enterprise system for a small
manufacturing company. The work will be presented in a project report with your
detailed system analysis and design. You should aim at design of the system based on
the business processes of a bike shop which works on bike assembly and customer
services. A case study has been included in this document. Group members should
discuss, decide and produce the project details together while fulfilling allocated
2.1 Joint section (joint work) of project report (around 300 words plus the two
It should include:
(1) Requirements (Overall requirements split from both internal and external
viewpoints of users on the whole system)
(2) The Top-Level Business Model
Use ONE UML diagram (Activity Diagram or Sequence Diagram) to describe the
main business process at the high/overall firm level.
(3) The Database structure (Use Logical ERD or the Relationship diagram in the
2.1.1 Individual section (Individual work) of the project report (around 150
words for discussion on each sub-system, plus the one diagram)
It should include:
(1) Sub-system analysis and design
Present one Use Case Diagram for ONE MAJOR activity in your sub-system.
(2) Brief discussion of the expected contribution of your designed sub-system functions to the
business strategy and goals, and possible future improvement or innovation of the
business with information system support.
Each group member will be responsible for the analysis and design of one subsystem
although group discussion on the work is required to ensure the system functions can be
properly integrated and the database can support the whole business.
2.2 Details of the sub-systems
Sub-system tasks. The different sub-system tasks include:
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• Sales: Marketing, customer management, web sales order management, sales performance
management, customised product management, etc.
• Purchasing: Component inventory management, issuing purchasing orders, supplier
information management, supplier selection and performance management, etc.
• Production planning: Production schedule (job orders), bill of materials (BOM)
management, shop floor capacity management, asset/facility management. etc.
• Logistics: Delivery schedules, distributor (third party logistics services) management,
Delivery orders issued to distributors, performance management, tracking service for
delivered orders, etc.
• Production control: Work in Progress (WIP) management and finished product stock
management, product quality and production performance management, etc.
• Warehouse management: planning of products and parts handling (in/out sequence,
dates/time, etc.), storage management (locations, capacity), planning of packaging
(For the 5-member groups, please cover the first five functions/tasks in the joint and
individual report sections).
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Case Study for the Project
Avitz Bike, founded in 1981, is a manufacturing company with 50 employees in
England. The company assemblies a variety of bikes, including racing bikes,
mountain bikes, children bikes, etc. Avitz Bike currently produces 20,000 bikes per
annum. Its products are mainly sold through retailers. Most of its suppliers are located
in the UK, however the wheels and gears of professional racing bikes are sourced
Avitz has been successfully selling its products in more than 15 countries, although its
largest market is within the UK. In the last 10 years, Avitz has been facing
increasingly strong competition in bike markets. More and more bikes are being
imported from Asia at lower costs with good quality. In the meantime, customers
today are demanding more customised products as well as a responsive service. Avitz
Bike’s market share in UK has fallen by 20 percent. The primary reasons are not only
high costs, but also longer customer waiting time for customised products. Avitz has
now begun to consider a new business strategy incorporating e-Business.
With the planned web based system, transactional information, knowledge, and other
resources can be shared by supply chain partners. Customer demand data, operational
activities, and product design information, etc. can be made “transparent” to internal
staff and supply chain partners. This visibility facilitates more efficient processes in
the supply chain, i.e. operational processes in different companies can be
implemented simultaneously according to end customer requirements, without
waiting for information to be transferred between supply chain partners. The benefits
of such an e-Business approach are not only minimised information distortion and
reduced costs, but also the provision of a more responsive and potential innovative
services to customers.
Avitz aims at using the new system to improve customer services/experience and
reduce costs and lead-time of fulfilling orders.
Current Business Processes
Avitz Bike currently receives product orders from retailers via electronic data
exchange (EDI) or email. Before receiving final orders, retailers usually communicate
with the Avitz sales manager for price negotiation. Then formal orders will be sent to
the Avitz sales department.
Orders are processed for validation or approval, including verifying price and other
purchasing requirements (specification, lead-time, etc.) with the sales manager and
the operations manager. Validated orders will be processed by the operations
manager: checking stocks and scheduling production orders based on lead-time
requirements and capacity constraints. The purchasing manager is responsible for
determining what bike parts should be ordered according to the stock levels, and
which supplier the orders should be sent to. Bikes are assembled either from parts or
sub-assembly of parts. The company keeps a maximum of three days’ stock of parts
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(controlled by reorder points).
Assembled bikes are delivered by distributors according to customer order
information. Lead-time for products from the company catalogue is normally within 3
days. However, lead-time for customised products is one month on an average.
The Planned e-Business System
An interview with the managing director of Avitz has provided the following
expectations of the company to the planned e-Business system. The following
information summarises his ideas.
The e-Business system will include a public Web site and an Intranet. The Web site
will be built as an interface for customers (including both individual consumers and
retailers) to search for the bikes and bike parts they required. Orders can be placed online according to a product catalogue and their preference. Customers can also order
customised bike by specifying preferred colour and material, and additional
components (lights and pump, etc.) which are not listed in the catalogue. When
components or specifications cannot be found from the Web site, customers should be
able to describe the details and ask for a quote. Customers will be given a quote with
maximum lead time, price, and quantity of the order. The quote is created by sales
clerk and approved by a sales manager.
Customers can accept or refuse the quote. For accepted quote, the bike shop will
process it as an order. For refused quote, the customer will raise a revised request.
Through the Web site, customers can view status of their order approval.
Avitz will give its suppliers access to information of sales, stock levels and WIP
within the company so that suppliers can plan their production based on the real-time
An Intranet will be set up for staff to process transactions. Received orders will be
processed for approval. Approved orders will be processed for checking stock levels
and existing jobs. Then, dates of delivery should be calculated and be available to
customers via the website with order confirmation.
For bike parts which are not available, or lower than their re-order points, purchase
orders will be created. After approval by purchasing staff, purchase orders will be
placed. For a bike ordered as customised product, a new product code should be
Major bike specifications include category, model, colour, size, weight, number of
gears, type of brakes, and price. Typically, ordering, manufacturing, purchasing and
delivery will use a product code to identify the product.
Avitz wish to keep details of the customers for delivery and credit control. The
company wishes to know how much business each customer has given them so that
the company may be able to offer discount.
Supplier information should be kept for the purposes of placing purchase orders and
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supplier selection. Price, lead-time, quality and delivery promptness will be used for
decision-making on supplier selection.
Avitz also needs to keep distributors’ information for product delivery. Vehicle type,
code, date and time for delivery (departure) and expected arrival should be accessible
by customers so that order status can be tracked. Order approval, bike assembly and
bike part purchasing require recording the staff who is responsible for the job.
The managing director and managers would like to see performance of sales,
production, supply, delivery, inventory control, quality, customer, etc.
Avitz would like you to include in the system design any useful features that you
think would help them within the context described above.
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