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Systems Analysis and Design (C2001)
ASSIGNMENT TERM ONE 2010 Instruction: Answer ALL questions. Marks will be awarded for good presentation and thoroughness in your approach. NO marks will be awarded for the entire assignment if any part of it is found to be copied directly from printed materials or from another student. Complete this cover sheet and attach it to your assignment. Student declaration: I declare that: I understand what is meant by plagiarism The implication of plagiarism have been explained to me by my institution This assignment is all my own work and I have acknowledged any use of the published or unpublished works of other people. Student's signature: ……………………………………. Date: ………………………………..
Total number of pages including this cover page. Submission Date Student's ID Student's Full Name Lecturer's Name OFFICIAL USE ONLY MARKER'S COMMENTS Due Date Class Code
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C2001 Systems Analysis and Design Semester 1 2010
Background Five years ago, cardiologists Timothy Jones and Dolores Garcia decided to combine their individual practices in Fullerton, California, to form the New Century Health Clinic. They wanted to concentrate on preventive medicine by helping patients maintain health and fitness and by providing traditional medical care.
Dr. Jones recently asked you to work with him as an IT consultant. He wants you to help New Century develop an information system that will support the clinic's operations and future growth. During an initial meeting, he provided you with some background information and asked for your suggestions about how to get started. At your desk, you begin to review New Century’s situation. The clinic is located near a new shopping mall in a busy section of the city. New Century's staff includes four doctors, three registered nurses, four physical therapists, and six office staff workers.
The clinic currently has a patient base of 3,500 patients from 275 different employers, many of which provide insurance coverage for employee wellness and health maintenance. Currently, New Century accepts 34 different insurance policies. Anita Davenport, who has been with New Century since its inception, is the office manager. She supervises the staff, including Fred Brown, Susan Gifford, Tom Capaletti, Lisa Sung, and Carla Herrera.
Fred Brown handles office payroll, tax reporting, and profit distribution among the associates. Susan Gifford is responsible for the maintenance of patient records. Tom Capaletti handles most of the paperwork concerning insurance reporting and accounting. Lisa Sung has the primary responsibility for the appointment book, and her duties include making reminder calls to patients and preparing daily appointment lists. Carla Herrera primarily is concerned with ordering and organizing office and clinic supplies.
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Each of the six office staff people has one or more primary responsibilities; however, all members of the staff help out whenever necessary with patient records, insurance processing, and appointment processing. In addition to their regular responsibilities, all six office workers are involved in the preparation of patient statements at the end of each month. New Century Health Clinic's office manager, Anita Davenport, recently asked permission to hire an additional office clerk because she feels the current staff can no longer handle the growing workload. The associates discussed Anita's request during a recent meeting. They were not surprised that the office staff was feeling overwhelmed by the constantly growing workload. Because the clinic was busier and more profitable than ever, they all agreed that New Century could afford to hire another office worker. Dr. Jones then came up with another idea. He suggested that they investigate the possibility of computerizing New Century’s office systems. Dr. Jones said that a computerized system could keep track of patients, appointments, charges, and insurance claim processing and reduce paperwork. All the associates were enthusiastic about the possibilities and voted to follow up on the suggestion. Dr. Jones agreed to direct the project. Because no member of the staff had computer experience, Dr. Jones decided to hire a consultant to study the current office systems and recommend a course of action. Several friends recommended you as a person who has considerable experience with computerized business (i) Based on the given scenario above, what kinds of questions would you ask to assess the initial feasibility of this project information, does the project seem feasible? [25 marks]
Describe what will be the plan of action if New Century Health Clinic management decided to contract your services to perform a preliminary investigation? [25 marks]
What types of information is needed when you begin the preliminary investigation? From whom will you obtain it? What techniques will you use in your fact-finding? [50 marks]
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QUESTON (i) Based on the given scenario above, what kinds of questions would you ask to assess the initial feasibility of this project information, does the project seem feasible?
To ask question based on the given scenario, and to determine the feasibility of this project, three major yardsticks will be employed in the measurement of the proposal: Operational feasibility, technical feasibility and economic feasibility. The questions will be asked to upper management staffs and lower management staffs in new century clinic. Facts-finding methods will be employed in other to provide answers to this questions I would ask as the analyst.
OPERATIONAL FEASIBILITY QUESTIONS: Is there managerial support for the project? Do the Staffs of the affected department support the project? Is the manual System well-liked by the users and is it effectively used? Does the staff see the need for a change? Will the new system require training for its users? If so, is the management of New Century Health Clinic prepared to provide necessary support required to train its current employees? Will the implementation of a new system result in work force reduction? if so, what will be the effect of this on these employees. Will users be involved in planning the new system right from the start? Will this new system place new demands on staffs or require any operating changes? E.g. will any information be less accessible on produced frequently? If so, will an overall gain to the organization outweigh these individual losses? Will patients of New Century Health Clinic be affected adversely in any way either temporarily or permanently? Would there arise any risk to the company’s image or good will result? Are legal and ethical issues to be considered? Does the development of the Computerized System conflict with other company priorities?
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TECHNICAL FEASIBILITY QUESTIONS Does New Century Health Clinic have the equipment necessary for the Computerized Systems? If not, can they acquire the necessary materials needed without difficulty Does the New Century have the needed technical expertise in the development of their new computerized systems? If not, can it be expanded? Will hardware or software platform be reliable? Will it integrate with their company’s information system? Both now and in the future. Will the Computerized Staff department interface properly with external Systems operated by patients and business partners? Will hardware and software combination supply adequate performance? Do clear expectations and performance specifications? Are their clear expectations and performance specifications? Will the System be able to handle projected growth of New Century Health Clinic? If there exist any.
ECONOMIC FEASIBILITY QUESTIONS In consideration of the Economic feasibility questions, areas to be considered will include Total Cost of Ownership (TCO) which includes ongoing support and maintenance costs, as well as cost acquisition. In the determination of the TCO, I would estimate cost in the following areas; People who includes the staffs of New Century and Users Hardware and Equipment Software: consideration of whether to build the software in house or buying from a vendor. Formal and informal training required by users of the computerized systems. License and fees Consulting expenses Facility costs
The estimated cost of not wanting to develop the system or postponing the project. In addition to cost, benefits to New Century Health Clinic will be accessed, are they tangible or intangible
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TANGIBLE BENEFITS Will the new System/ Computerized system reduce overtime? Will it provide extensive package that will improve service and decrease the need for clerical staffs.
INTANGIBLE BENEFITS Will the Computerized System be user-friendly that improves employee job satisfaction? Will the Proposed System be able to supply better information for business and strategic decisions? Other questions that will be considered economically are: Will the proposed system reduce costs? Where? When? How Much? Will the system cause increase to New Century Health Clinic revenue? How? When? Will the Computerized systems project result in more information or produce better results? How? Are these results produced measurable? Will the Computerized System Serve Patients better and interface with other partners need smoothly? Can the project be implemented within a defined time frame? Are the necessary resources i.e., money, people and equipment available to kick start the project if it’s acceptable or simply approved. Other questions to be considered are: Can New Century Health Clinic control factors that affect implementation or time frame for implementation? Has New Century management established a firm timetable for the project? What conditions must be satisfied during the development of the System? Will an accelerated schedule pose any risks? If so, are the risks acceptable? Will a project manager be appointed?
To evaluate if the project is feasible or not, answers will be provided to these questions asked. Consideration of the Organizational chart will be needed as well as the employment of fact-finding techniques suitable for this process. Many levels of users within the organization will be question and their answers assumptions and other factors will tell if the project is feasible or not?
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But first, let us consider the organizational chart, to analyze duties performed by staffs in office department for which the system changes is to affect as shown in the Figure 1.0 and break down from Table 1 below.
Office Manager Anita Davenport
Office Payroll, Tax Reporting, and Profit Distribution. Fred Brown
Accounting. Tom Capalletti
Call Remainder. Lisa Sung
Patient Statement, Maintenance of Patient Records, Insurance reporting, Appointment booking
Ordering and Organising of Office and Clinic Supplies. Carla Hererra
Figure 1: Office Department Structure and Activities
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Table 1: Staff Departments: Staff Name and Duties Performed.
STAFF NAME Fred Brown
DUTIES PERFORMED Office Payroll, Tax Reporting and Profit Distribution
EXTRA DUTIES Patient Statement Reporting, Maintenance of Patient Records, Insurance Reporting, Appointment
Lisa Sung Susan Gifford Tom Capalletti Carla Hererra
Accounting Ordering and Organization of office and Clinic Supplies
In addition to finding if the project is feasible or not I need to analyze the problems and opportunity, the project scope and constraints needs to be understood, fact-finding and operational, technical and economic feasibility for which have been considered and asked.
IS THE PROJECT FEASIBLE OR NOT? When a project is initiated, it is sometimes assumed that a new system is feasible to develop and install. This brings about the question, “Are the expected benefits reasonable?” and “Are the assumed costs realistic?” To say whether the development of a New System is feasible or not for New Century Health Clinic, we have to consider the feasibility types firstly the Economic feasibility, Operational and lastly the Technical feasibility. Economic Feasibility: The economic feasibility consists of two tests: 1. Is the anticipated value of the benefits greater than projected cost of development and, 2. Does New Century Health Clinic have adequate cash flow to fund the project during the development period? In other to determine whether the computerized systems development will be economically feasible or not we have to consider thorough analysis of the cost/ benefits. Development of the cost/ benefits analysis is a three step process. STEP1: Estimation of anticipated development and operational cost. i.e cost that will be incurred during development and after development of the system. STEP2: estimation of the financial benefits. Financial benefits are the expected annual savings or increases in revenue derived from the installation of the new system.
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STEP3: Calculation of the cost/benefit analysis based on estimates of costs and benefits
DEVELOPMENT COSTS Dr. Jones who is the Project manager has the final responsibility for estimating the cost of development, an analyst will assist in its calculation. The project costs will contain the following categories. Salaries and wages Equipment and installation Software and licenses Consulting fees and payments to third parties Training Facilities Utilities Support for staff Miscellaneous
Salaries and wages are calculated based on the staffing requirements of the project. Dr. jones has the veto to estimate the cost for salaries and wages shown in Table 2.
SUPPORTING DETAIL FOR SALARIES AND WAGES Team Member Project Leader System Analyst Programmer Total Salaries and wages Salary/Wage for Project $ 94,000.00 $72,080.00 $49,285.00 $121,365.00
Each of the other categories of cost requires detailed calculation to determine the estimated cost. Detailed estimates of equipment, software licenses, training costs, and so forth can be calculated. These details are then combined to provide an estimate of the total cost of development. Table 3 is a summary of table of all the cost.
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SUMMARY OF DEVELOPMENT COST FOR NEW CENTURY HEALTH CLINIC EXPENSE CATEGORY Salaries/wages Equipment/installation Training Facilities Utilities Support staff Licenses Miscellaneous Total AMOUNT $121,365.00 $200,000.00 $78,000.00 $57,000.00 $109,000.00 $38,000.00 $18,000.00 $50,000.00 $1,121,365.00
SOURCES OF ONGOING COST OF OPERATIONS Once the new system is up and running, normal operating costs are incurred every year. These annual operating cost must also be accounted for in calculating the cost and benefits of the computerized system. Dr. Jones duty is to calculate the cost of upkeep of the new system and maintenance. The list below identifies the major category costs that may be allocated to the operation of the new system: Connectivity Equipment Maintenance Computer operations Programming support Amortization of equipment Traiing and ongoing cost(Help Desk)
Table 4 gives a summary of the annual operating cost for New Century health Clinic. As with the development costs, each entry in the summary is supported with detailed calculations. The table figures gives virtual representation of the cost anticipated for New Century Health Clinics Computerized Systems Development.
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SUMMARY OF DEVELOPMENT COST FOR NEW CENTURY HEALTH CLINIC RECURRING EXPENSE Connectivity Equipment maintenance Programming Help desk Amortization Total recurring costs AMOUNT $60,000.00 $40,000.00 $65,000.00 $28,000.00 $48,000.00 $241,000.00
SOURCES OF BENEFITS Dr. Jones and selected members of the project team can determine most of the development and operational costs. However, this benefit relates to the user and client. Therefore we determine the value of the anticipated benefits. Benefits come from two sources: decreased costs or increased revenues. Areas to look for reduced cost include: Reducing staff due to automation of manual functions or increase efficiency Maintaining constant staff with increasing volumes of work Decreasing operating expenses, such as insurance claim processing, paperwork, appointments recording, charges, etc. Reducing error rates due to automated editing and validation Ensuring quicker processing and turnaround of documents or transactions. Capturing lost discounts on money management. Reduction on bad accounts Collection of accounts receivable more quickly Reducing paperwork cost with electronic data interchange due to computerization
Table 5 will give an example of the benefits that New Century Health Clinic expects form the implementation of the Computerized System in the office Department.
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SAMPLE BENEFITS FOR NEW CENTURY HEALTH CLINIC BENEFIT/COST SAVING Increase efficiency in keep track of patients appointments Increased efficiency in keeping track of charges and insurance claim Increasing efficiency in payroll, tax reporting and profit distribution Increase earnings due to timely reminder calls Total annual benefits $30,000.00 $405,000.00 1 person @ $30,000 $76,000.00 $76,000.00 AMOUNT $117,000.00 COMMENTS
FINANCIAL CALCULATION This method is employed to determine the overall benefits of the new system, an approach is the determining the Net Present Value of the new system: this permits for the calculation of all benefits and cost in present day dollars and benefits and costs are combined to give a net value. Another method to determine whether investment will be beneficial is to determine its payback period. The return on investment is another economic measure that can be used in the determination of the investment benefits. Calculations for Return on investment and payback period shall be done here and shown in the table 6 below.
NCHC BENEFIT ANALYSIS 1 Value of benefits 2 Discount factor (10%) 3 Present Value of benefits
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Ongoing cost Discount factor (10%) 1
$(241,000) $(241,000) $(241,000) 0.6892 0.5342 0.4312
Present Value of Cost
PV of net of benefits and costs
2 years + 851,815/(851,815 + 663,091) = 2.56 years or 2 years 6 months (1,121,365 + 398,758) – 857,032 / (1,121,365 + 398,758) = 44%
3 years return on investment
For New Century Health Clinic the return on investment (ROI), assuming a 3 year period is 44 percent. In other words investment in the development cost returned 44% which means the system is developing profits at this point in time
INTANGIBLES The previous costs and benefits depended on quantifiable cost and benefits. However in many instances cost and benefits cannot be measured and values cannot be determined. Since there is no reliable method of measuring the values they are considered as intangible benefits. The intangible benefits far exceed the tangible cost at least form the opinion of the clients. Some intangible benefits include: Increased level of service by the introduction of the computerized system Increased customer satisfaction The need to develop in-house expertise In other that the economic feasibility stands still, long-term capital is needed to source the developmental process.
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OPERATIONAL FEASIBLITY: Low level of computer competency A perceived loss of control Fear of change of job responsibilities Fear of loss of employment due to increase automation
In summary, from the above analysis conducted, I can clearly deduce that the project is feasible and can bring about organizational development.
QUESTION (II) Describe what will be the plan of action if New Century Health Clinic management decided to contract your services to perform a preliminary investigation?
The Plan of action in other to conduct a preliminary investigation are listed below as flows: Interaction With Manager ( Dr. Jones) and users (office Department staffs) Try to understand the problems and opportunity and the current and New Systems. Define the project scope and constraints. Performance of facts finding, through the following ways: Analysis of organizational charts Conducting of interviews based on affected areas in the Organization; looking the organizational chart. Review of old previous documentation (if any) Observe operations. Conduct a user survey. Evaluation of feasibility: economic, operational and technical will be done to ascertain whether or not system development can be done or not. Estimate of Project development time and cost. Presentation of results and recommendations obtained from preliminary investigations to Dr. Jones.
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PRELIMANARY INVESTIGATION STEPS INTRODUCTION New Century Clinic is a new developed Health Care Centre which combines the concept of health and fitness through preventive medicines and traditional medical care. The ideas of this combination were the brains of Dr. Timothy Jones and Dolores Garcia. This clinic with a patient standings of about 3,500 from 275 different employers; many of which are under insurance coverage for employee wellness and health maintenance with a total staff strength of 17 employees. With the growing trend and mix of concept from two different works of life, New Century Health Clinic sees the need for change of system to meet the demands of the growing rate of patients at its Clinic.
PROBLEMS AND OPPORTUNITY OF PROJECT The problem of New Century Health Clinic was caused as a result of overload of work and the asking of Mrs. Anita Davenport to hire additional office clerk because of has feeling that the current staff strength cannot handle the work any longer. An avenue was created by Mrs. Davenport when she reported the matter to the associates of New Century Health Clinic at a meeting held by the Clinic’s Management. Dr. Jones rather than hire an office clerk proposed that the paperwork of the New Century Health Clinic be converted to a computerized system that would provide the following functions – keep track of patients appointments, charges and insurance claim processing idea was welcomed by all associates of New Century Health Clinic.
PROJECT SCOPE AND CONSTRAINT The project scope is tied around the building of a Computerized Systems that would keep track of patient’s appointments, charges, and insurance claim processing as this is intended to reduce paper work. The project is not an Enterprise one, as it would affect only the office Department of New Century Health Clinic headed by Anita Davenport as shown in the figure 1. Above New Century Health Clinic is be-deviled by the need for the hiring of a New Clerical worker to support paper work process. The constraint faced by the office department is one that calls for an urgent attention, it should be noted that the above problem for the development of new system is largely internal which is not as a result of any external force. It is mandatory that the system be provided a solution with either hiring a clerical officer or
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implementation of the computerized system. The office department is over loaded with office chores. Support was initially provided by manual procedures with the help of 6 staff workers consisting of Davenport (Office Supervisor) and 5 other employees office workers performing duties as such as office payroll, tax reporting, profit distribution, patient record maintenance, insurance reporting, accounting, appointment booking, reminder calls placement to patients and daily appointment lists, organization and ordering of office clinical supplies. As a result of growing demand for health services, leading to a profitable business; New Century Health Clinic initiated a comprehensive strategic planning activity. Part of the new strategic plan is the development of new information system or simply the computerization of New Century office systems. This Systems would support long-term objectives of New Century’s Health Clinic for keeping track of patients, appointments, charges, etc. which will reduce paperwork. This project was designed to develop computerized office systems for New Century’s Health Clinic.
THE REQUEST FOR COMPUTERIZED OFFICE SYSTEMS. Dr. Jones, Head of New Centuries Health Clinic and other associates at a meeting received a request for the hiring of an additional office clerk due to the fact that her current staff strength could not handle the work load in the department. The matter was later addressed in a meeting held by the New Century Clinic associates, not overlooking the request made by Anita Davenport. The Associates in this meeting were not surprised at the pressure for which the office department is facing, which is to largely due to the growing strength of the Clinic due to patient influx. Dr. Jones who at the meeting suggested possibilities of a Computerized System in the office department was gracefully given support by the other associates who were enthusiastic about the vision of his and the infinite possibilities of its successful implementation. Afterwards a request for computerized business services was sent to me for action( as IT consultant) by Dr. Jones. In his request he mentioned that the problem of workload has and the need for additional staff was the result for the initiation of the project.
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ORGANISATIONAL CHART To begin my preliminary investigation, I must meet with Dr. Jones, Mrs. Anita Davenport to obtain copy of the Job description for all office workers and organizational chart. The Job description of each office was obtained from the given scenario as shown in Table 1 and figure 1 above. Upon review of each description, I shall meet agin with Mrs. Anita Daven Port who I will ask questions of how the office department is been ran.
INTERVIEWS For interviews, I decided to interview, Daven Port Anita office Supervisor of New Century Health Clinic. My reason being that Daven Port will be able to provide me with an overview of the problem faced by her office department, including with facts about the primary responsibilities of each staff of the office department. Questions as such as the if the change in change in from the manual system to computerized system will is welcomed by herself will be asked. A general idea and perception of the change of system will be required during the interview with Mrs. Daven Port. Others staffs or operational personnel of the office department will be questioned on their perception and acceptance of the change. The re notion of the new system being welcomed will not be left out. Facts about their various duties will be gathered.
EVALUATION OF THE FEASIBILITY OF THE PROJECT This has been considered in question 2 above.
PRELIMINARY INVESTIGATION REPORT The following were found during my investigation: Due to the growing number of patients in the clinic, the workload in the office department outnumbered the number of staffs present to handle their tasks efficiently, hence the request for an additional clerical worker by Mrs. Daven Six operational personnel are involved with additional regular responsibilities of the preparation of patient statements at the end of each month. The following factors contributed to the office system request. The current office processing system which is a manual one is cannot handle the growing number of patients in the clinic due to staff outnumbering. For the fact that human activities are prone to error, it is undesirable fact that there shall be a lot
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more of redundancy in the office paper work task as many individuals can handle the same task. EXPECTED BENEFITS The benefits of the new system have been analyzed in the above question 2.
TIME AND COST ESTIMATES An estimate of 3 week and 5days will be required for me to perform the requested analysis. The number of hours required by me wills 34hours for the interviewing of relevant personnel to gain key information vital to the development of the new system. Below is an estimate of costs for performing the analysis
System analyst Other Staff
3.0 weeks @ $2,900/wk 0.5 weeks @ $500/wk
If the system development will be approved, total cost depends on what appaorach is taken. If the current system will be converted an estimated total of $1,121,303.00 will be required for its development.
RECOMMENDATION The problems identified in the preliminary investigation will increase as New Century Health Clinic continues to grow. Also, it is clear that the current System can be modified to handle task that are not done manually using a computerized system. Based on analysis done, the benefits of computerizing the new system seemed to outwit those of manual operations, it is my humble request that in order to avoid much pressure on the office department staff the new system be developed as additional staff will only lead to redundancy (human errors).
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QUESTION (III) What types of information is needed when you begin the preliminary investigation? From whom will you obtain it? What techniques will you use in your fact-finding?
Information that will be needed when preliminary investigation begins includes: Knowing about the problems and opportunities of the New Century Health Clinic Also information about the Project Scope and its constraints: which entails present and future constraints, internal versus external constraints and mandatory versus desirable constraints: will be needed as it is critical in the development of the computerized systems. Fact-finding methods will be employed in gathering information regarding workload of the office department, reports received and produced, volumes of transactions handled, and types of jobs and duties of staffs of the office department and most important of all difficulties and opinion of staffs on how the job could be performed better or more efficiently. Information as regards the feasibility of the project will be determined Gathering of data needed to estimate the time and cost of the development of the computerized system for New Century Health clinic will be required. The structure of the organization is needed to be known, this can be done by analyzing organizational chart, which will define the functions of each department involved in the investigation.
Types of Information needed during preliminary investigation will be obtained from two major sources: they include; Managers: Dr. Jones and Supervisor: Mrs. Anita Daven Port who have a broad knowledge of the systems operation and also operational personnel (users) : staffs of the office department. Firstly, there has to be analysis of the organizational chart, which defines the functions of the organizations’ departments. I should be able to identify department affected by the change. For the case of New Century Health Clinic, Dr. Jones and Mrs. Anita Daven Port will be the Manager and Supervisor for which I shall obtain information as regards system changes and current system. Operational personnel will include staffs of the Office Department as shown in Table 1 above.
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The Techniques that I shall employ in fact-finding will include the following methods Interviews: Because an organizational chart exist for New Century Health Clinic, it is very possible to identify problem departments, interview is needed to be conducted meeting with office supervisor Anita Daven Port and staffs of this department. Also to get a clearer picture of the scenario, interview will be done with the Manager Dr. Jones who initiated the development of the new system. Document Review The scenario presented above gave a brief detail as regards the functions of the filing system and its effect on the staffs in the office department. This information above is vital as it defined the activities of the current system which is a key element in the development of a computerized system. Information as such as this gives detail description of the workings of legacy system. Questionnaires The questionnaire will focus on questions related to transactions handled by the office department, types of jobs and duties, difficulties of this department, workloads, reports received and opinions of how the job could be performed better or more efficiently. The aim of the questionnaire to meet a large number of people in the organization. Research Visit to New Century Health Clinic and observation of task performed by staffs of the office department is another means of obtaining information about the Current systems operations and activities. Journals, the internet will also provide information about similar operational activities observed. All this will later be documented for report to the Management of the New Century Health Clinic.
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