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INTERNATIONAL JOURNAL OF BUSINESS EDUCATION AND MANAGEMENT STUDIES

International Journal of Business Education and Management Studies (IJBEMS)

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Optimization of Procurement & Purchase Order Process in Foot Wear Industry by Using VBA in Ms Excel

IJBEMS  ·  Vol 5 Issue 2 2020  ·  2020-05-25
Publication Details
Author(s)
Muhammad Ahmed Kalwar, Muhammad Ali Khan
Article Type
Research Article
Issue
Vol 5 Issue 2 2020
Volume
5
Number
2
Pages
80-100
Publication Date
2020-05-25
Abstract
In the case company there were typical various reports which were made manually in excel spreadsheets. The data was used to be downloaded from Microsoft Dynamics AX in excel spreadsheet and processed as per the requirements of the reports. In some of the reports, there was decision making on the values to be entered in different cells in the excel spreadsheet. Procurement report was one of those reports; it needed full concentration of an employee and if the employee is tired or mentally absent, there could be greater chance of putting wrong values in the wrong cell address in the spreadsheet. Since those values were associated with the cost; thus it was the greatest need to find fully automated way to make the report in which the computer will be used to make the decision as per the defined conditions. Therefore, Procurement report and purchase order against it were automated by using visual basic for applications (VBA) in excel.VBA code was compiled and run in the visual basic editor (VBE) in MS excel. Language procedures mainly based on the if conditions and for loops were used to circulate those condition into the required worksheets. Time study (which was conducted by the help of stopwatch) of report for both methods i.e. manual and automated was conducted. Procurement report was used to take 2076.751 sec to be completed as per old method when there were 120 items (to be procured) in the report. Moreover, it took 516.578 sec to be completed by automated method containing same number of items. Comparison of time study of both methods indicated that the new method was taking 75% less time in making the procurement report; whereas, new method to make the purchase order (PO) was taking 2-3 seconds instead of 15-20 minutes. After the required modifications and troubleshooting of the automated procurement report template, its results were verified. Automated method for making the report was up to the mark of departmental requirements and most importantly, the new method of making both reports was error free whereas, in old method the chance of error was greater. This research paper contributes in providing the solution to industries by which the conditional decision making can be automatically conducted by use of VBA. The small scale (with no or little cost) efficient system can be produced with interesting interface with set of macros capable enough to perform the tasks of hours in minutes.
Keywords
Optimization Visual Basic Application (VBA) Procurement Purchase order Automation