Budd Services Inc.

1. Budd Services Inc. Group # 3 Members : 1. Sejal Patel 2. Derrick Owusu-Akyaw 3. Juned Tai 4. Payal Sanghvi My thanks to the above for allowing this presentation to be posted

2. Main Points - Introduction: 1. Company’s History and Philosophy  2. Computers and Processes at Budd Service……………………….by Sejal Patel. Analysis: • Operation and Departments of Budd Service, Inc…..by Derrick Owusu-Akyaw.

3. MainPoints- Problem:  1. The Dilemma 2. Local Area Network 3. Minicomputer…………………..by Juned Tai. Solution: 1. Solutions 2. Conclusion…………………..by Payal Sanghvi.

4. Introduction : • Company’s History and Philosophy  • Computers and Processes at Budd Service

5. Introduction of Budd Services Inc

6. 1. Company’s History and Philosophy  • Budd Services Inc Started in 1962 • As a Janitorial Supplies • Grew rapidly during 80’s • 20 % increase in revenue due to Acquisitions

7. 1. Company’s History and Philosophy  • Budd Services Inc. in (1988): • $ 15 Million Annual Revenues • 1,200 Employees • 1,000 Clients • 190,000 square feet of Warehouse Space at Winston Salem at North Carolina

8. Company’s History and Philosophy  • Budd Services operated Six (6) Divisions: 1. The North State Supply (the original janitorial supplies sales division) 2. Budd Janitorial (a contract cleaning service) 3. Budd Landscape (an outdoor maintenance service) 4. Budd Security (a security guard service) 5. Morris Cleaning (a specialty cleaning team) 6. Weaver Seed (a grass-seed business)

9. Company’s History and Philosophy  • Corporate Philosophy • Richard Budd states that “ Profits comes as a result of what you give to the Customers…” • Most Important is Quality of Service • Budd Services viewed as Family Business

10. Computers and Processes at Budd Service • Technology at Work • Budd Services Acquired its First Computer an IBM Personal Computer (PC) in 1983 • 9 Personal Computers (PCs) in 1988 • Lotus 1-2-3 used for Money Applications • WordPerfect used for Word Processing • ACQ Software

11. Computers and Processes at Budd Service • ACQ Software Modules Contains Six Modules: • Payroll • Inventory • Order Entry/Invoicing • Account Receivable (AR) • Account Payable (AP) • General Ledger

12. Computers and Processes at Budd Service • Use of Technology • Different Modules on Different PCs • Hardware Costs - $ 75,000 • Off-the-Self Software - $ 15,000 • Use of Person Hours • Creating Lotus Spreadsheets • Learning Curve was 4 Months

13. Analysis: • BUDD SERVICES OPERATIONS AND DEPARTMENTS: 1. PAYROLL 2. JOB COSTING 3. INVENTORY AND ORDER ENTRY 4. MONTHLY BILLING (SERVICE DIVISIONS) 5. ACCOUNTS RECEIVABLE & ACCOUNTS PAYABLE PROCESSES 6. GENERAL LEDGER AND FINACIAL CONTROL PROCESSES

14. 1. PAYROLL • Payroll Checks was run using ACQ payroll module. • Payroll reports were used in the job costing and general ledger process. • Payroll input subject to managerial approval. • Lotus 1-2-3 macro used in producing payroll reports for Budd Security services.

15. 2. JOB COSTING • Lotus Spread sheets used in Job Costing reports. • Company’s revenue figures obtained from the inputs of managers. • Job costing figures compared to company’s year-to-date budget.

16. 3. INVENTORY AND ORDER ENTRY • North State Supply and Weaver Seed were the only two Budd services divisions with substantial inventory. • Physical inventory count conducted each year. Inventory and order entry processes to be integrated. • ACQ software used in managing all inventory levels.

17. 4. MONTHLY BILLING (SERVICE DIVISIONS) • ACQ accounts receivable module is used in the monthly billing process. • Lotus used in billing processes that involved a one time service rendered by any Budd service division.

18. 5. ACCOUNTS RECEIVABLE & ACCOUNTS PAYABLE PROCESSES • Account receivables handled by different people to ensure checks and balances. • Lotus Spreadsheets and ACQ books were used for check postings. • Accounts payable process to be automated.

19. 6. GENERAL LEDGER AND FINACIAL CONTROL PROCESSES • General Ledger accounting maintained at the divisional level. • Data for general ledger postings derived from the inputs of divisional mangers. • ACQ general ledger used in this process. • Variance reports used to track financial status of the various divisions within Budd Services.

20. Problem:  1. The Dilemma 2. Local Area Network 3. Minicomputer

21. The Dilemma: The computer technology is not up-to-date • Too Much time is spent on Manual Data Entry • Need an integrated business process for the whole organization • Two Alternatives: • LAN (Local Area Network) • Minicomputer

22. Local Area Network: • Will connect the existing computers in a loop • Cheaper than Minicomputer • Will allow file-sharing and data sharing • Will be sufficient for now • Will not require to hire a Programmer

23. Minicomputer: • Expensive but Effective Alternative • Will connect with existing PCs and other standard (non-pc) terminals • Better software and assistance • Will provide a centralized control of data and applications • Ensures better data security and integrity

24. Solution: • The whole new system • Better Alternative : Minicomputers • Centralized availability of all the documentations. • Vendor B • Replaces all the existing PCs • Installed by the systems engineer • Provided references for other software

25. Conclusion: • Invest for the Better Future

26. Questions or Comments

27. Thanks