System Analysis and Design

Module 1

Define: System Analysis & System Design

System analysis and design is a process of examining business organizations for their problems
and to improve it through better and systematic procedure. System analysis design refers to
bringing the solution using computer based information system.

The whole process is divided in two steps

System analysis

System design

System analysis involves following process

Examining existing system

Identifying problems
Identifying requirements

And specifying solutions

System design is a process of identifying input output requirements preparing forms, database
design, file design and software design. Thus, it is a process of planning the new business
information system.

Systems development is the process of defining, designing, testing, and implementing a

new software application or program. It could include the internal development of customized
systems, the creation of database systems, or the acquisition of third party developed software.
Written standards and procedures must guide all information systems processing functions. The

organizations management must define and implement standards and adopt an appropriate
system development life cycle methodology governing the process of developing, acquiring,
implementing, and maintaining computerized information systems and related technology.
Examination Objectives:
Determine if the board and management have established and maintained effective
systems development methodology.
This is accomplished through the following examination objectives:
Board and Management Oversight
Assess the adequacy of systems development oversight by examining related policies,
procedures, and methodology.
Risk Assessment
Determine the level of systems development activities existing within the institution. If
systems development activities for mission critical systems are handled primarily through a
service provider, evaluate managements due diligence to ensure appropriate documentation and
controls exist within the service providers development processes. Assess the adequacy of the
institutions risk assessment process for systems development.
Internal Controls
Evaluate the effectiveness of preventive and detective controls designed to identify
material deficiencies on a timely basis. The internal audit function should identify systems
development as an area for evaluation and review.
System development life cycle (SDLC):

An information system is designed and developed to meet organizational needs. The

whole design and development operation is done in several different steps. The various activities
under all such steps are carried out in fixed sequence and time. Thus, the total time required for
system development beginning from initial investigation to implementation is said to be the life
cycle of system development. The various activities of SDLC are carried out in sequence but in
real application they may overlap.
(a) Information Gathering & Feasibility Analysis:

The next stage is to collect detail information about the organization and to check the feasibility.
There are various methods for information gathering like asking questions, questionnaire,
Interview and on-site observations. Fact -about organization can be found by using above
methods.

The feasibility analysis is for checking possibilities of completion of project. There are three
different ways feasibility is checked. It may be financial, operational or technical. All the three
feasibility conditions must be satisfied.

(b) System Analysis:

System analysis is to find the problematic area. It is the approaches like Where the problem is?
it includes learning about the existing system. It is a process of knowing the need of the
organizations as well as operation of, the organization. So, it is a process of.
Examining existing system

Detection of problems.

Specifying solution

The various tools like DFD, Decision table, Decision tree, etc are used for the system analysis.

(c) System Design:

System design is an actual plan of the system solution. In system design processes following
activities has to be performed.

Identifying Inputs and Outputs of system. Sketching and designing forms.

Describing and defining data types. Design of hardware components.

Development of software.

File and database organization.

The step of system design is an actual blueprint of the solution.

(d) Coding:

This phase of system development life cycle performs system coding and decides method of
coding to develop application. Various methods can be used to code software like function
oriented software design and object oriented design. System analyst has to decide which coding
method has to be adept. As well module level testing is also perform here in this stage.

(e) System integration and Implementation:

System integration phase integrates different module developed individually to build one
application. System implementation is transferring system from development site to client site. It
includes

Connecting various hardware components.

Establishing computer network

Installation of various software.

Providing training to the user.

Thus it is a process of putting the whole system into action.

(f) System Testing:

System testing is a process of detecting errors and correcting .it in newly designed system. Under
this stage the debugging programs as well as the whole system performance testing is carried out.

(g) System Maintenance:

System maintenance is the process to remove the defects and problems in the working of System.
The system maintenance may be adaptive. It is also used to make the system modernized by
making some positive changes to it.

Project Selection
A detailed investigation of a projects technical, social and economic feasibility is
conducted in the Feasibility Study Stage. The Project Selection Stage is a first process to assess
each project idea and select the highest priority project(s) for further investigation.
At this Stage, possible projects may only be ideas or suggestions (e.g. individual observation,
most serious invasive plant in an inventory, most important site, species with greatest
conservation needs), so you may need to write a brief description of each project before
continuing with the selection process.
Selection of projects is based on:

Benefits: A measure of the positive outcomes of the project. These are often described
as the reasons why you are undertaking the project. The benefits of invasive species
management projects include:
o Biodiversity,
o Economic,
o Social and cultural,
o Fulfilling commitments made as part of national, regional or international plans
and agreements.

Achievability: An educated guess measure of the likelihood of the project being a

success, i.e. achieving its objectives. Projects vary greatly in complexity, risk and cost.
By evaluating likelihood of success when selecting projects it means the most-likely-tosucceed projects with the greatest benefits are given priority.

The Project Request

The project proposal submitted by the users or analysts to the project selection committee is a
critical element in launching the systems study. Although the form of such a request varies from
firm to firm, there is general agreement on the kind of information that should be provided.

In the proposal, the requester identifies where assistance is needed and gives details. A statement
describing the significance of the problem or situation is also useful to the committee members,
who want to know why the requester thinks the project is important.

Whether the project request has been triggered by a single event or recurring situation is of
interest to the committee as well. For example, the existence of a continual control problem in
processing vendor checks (costing the company several thousand dollars each year) tells the
committee members that the situation is much more important than one in which a single check
worth $100 was lost. In contrast, a committee reviewing a patient information systems proposal
for a hospital will want to know that a mismarked patient chart nearly resulted in the
administration of the wrong drug to a patient.

Both frequency and significance are important details in this medical situation since, although
the error occurred only once, it could recur with dangerous results.

Since a preliminary investigation will be conducted to learn more about the problem or
situation, the requester also should provide the names of other people who can provide additional
information.

Sources of Project Requests

There are four primary sources of project requests. The requesters inside the
organization are department managers, senior executives, and systems analysts.
In addition, government agencies outside the organization may request information
systems projects. Depending on the origin of the request and the reason for it,
requesters may seek either completely new applications or changes in existing
ones.
Department Managers
Frequently, persons who deal with day-to-day business activities, whether employees or
managers, are looking for assistance within their departments. For example, a business manager
in a large medical clinic supervises the preparation of patient claim forms submitted to insurance
companies, which reimburse the clinic for medical care.
Even though the business manager knows that preparing insurance claims is necessary to aid the
patient and ensure that the clinic is reimbursed, he or she may be dissatisfied with the amount of
time the staff devotes to the task, especially when much insurance information (such as patient
name, address, age, and the name of the attending physician) is already available in the patient's
records.

Pointing out the duplication of work, the bookkeepers express their desire to be free of the
clerical tasks involved in processing claims.

After discussing the insurance problem with administrators in other clinics, the business manager
asks the clinic's management committee to approve the development of a computer-based system
for preparing insurance forms and maintaining patient records about insurance payments.
This example is typical of cases where managers ask for systems projects. An ongoing activity
needs improvement, either to solve a problem (for example, too many errors, excessive costs, or
inconsistent work) or to improve the efficiency of a job.

The department manager requesting a systems project may not consider the interaction between
departments, even though the potential for such interaction can be high. For example, the
manager who requests an inventory forecasting system for ordering materials and supplies may
be looking primarily at ways to eliminate out-of-stock conditions. The request may not discuss
the implications in other areas, such as fewer production problems due to material shortages,
lower carrying costs for materials stored, or better prices through quantity purchasing. Yet, on an
organization-wide basis, these may be even more important reasons to consider the project. The
point here is that project requests submitted by department managers seeking specific operating
assistance may actually have wider implications that can affect other departments.

Senior Executives

Senior executives, such as presidents, board chairpersons, and vice presidents, usually have
information about the organization that is not available to department managers. That
information, coupled with the broader responsibilities these executives assume (they manage
entire organizations rather than individual departments), influences the systems project requests
they make. For example, the vice president for manufacturing who knows that an additional
production plant will be built in another city within two years may want to launch a systems
project to develop a centralized production planning system one that will enable management to
plan manufacturing at both plants at the same time. This project spans several departments
(including manufacturing, inventory control, and purchasing) at two locations and involves many
other managers.

The project requests submitted by senior executives are generally broader in scope than those
prepared by department managers. Consider how many departments and divisions of an

organization are included within the scope of a systems request to design and implement a new
corporate-wide budget system or a financial planning model. Such projects tend to cut across
more of the organization than does an inventory control system.

Multidepartment projects are also more difficult to manage and control, however. Departmental
projects, in contrast, are more likely to be successful, especially if the actual users take an active
role early in the project.

Systems Analysts

Sometimes systems analysts see areas where projects should be developed and either write a
systems proposal themselves or encourage a manager to allow the writing of a proposal on their
behalf. For instance, an analyst who sees that a university's course-registration procedure is slow,
error-prone, and generally inefficient may prepare

a project proposal for a new registration system. The request prescribes the development of a
system that takes advantage of new easy-to-use data entry terminals to speed registration.

Normally, proposals for operating systems, such as those for course registration, are prepared by
department managers. However, in this case, the analyst has information about new equipment
and technology that makes a more efficient registration system possible.

The department manager, who is not responsible for researching computer technology, may not
take the initiative for developing a systems proposal to facilitate registration procedures.

Do not forget that systems analysts and developers can also be users themselves. Project
management systems, file monitoring pack-ages, or programming library projects are typical of
the application projects that systems personnel might request.

Outside Groups

Developments outside the organization also lead to project requests. For example, government
contractors are required to use special cost Accounting systems with government-stipulated
features. The Internal Revenue Service requires organizations to keep careful payroll Records
and to account for employee income tax withheld. The Internal Revenue Service also specifies
the format for many of the tax documents that must be prepared; the employer has no choice in
the matter.

Quite often, new demands from external groups bring about project requests, either for new
systems or changes in current ones. Projects. Originating from this source is just as important as
those from within the organization. In some cases, such as when there are strict deadlines
imposed by the outside agency, these projects take on a higher priority than ones from, say,
department managers.

MANAGING PROJECT REVIEW AND SELECTION

Many more requests for systems development are generated than most firms can pursue.
Someone must decide which requests to pursue and which to reject (or perhaps solve by other
means). The decision to accept or reject a request can be made in a number of different ways and
by various members of the organization. The systems analysts are not the final arbiters.

One of the more common methods of reviewing and selecting projects for development is by
committee.

Steering Committee Method

In many organizations, steering committees (also called operating committees, operating
councils, or project selection boards) supervise the review of project proposals. The steering
committee typically consists of key managers from various departments of the organization, as
well as members of the information systems group. However, systems specialists do not
dominate the committee. A typical Seven- to ten-person committee would consist of the
following membership:

1. Upper-management members: Executive vice president

Vice president for manufacturing

Departmental management: Manager of retail marketing Credit manager

Technical managers:

Manager of research and development Quality control coordinator

Information systems group: Data processing manager

Senior systems analyst

The committee receives proposals and evaluates them. The major responsibility of the committee
is to make a decision, which often requires more information than the proposal provides.
Therefore, a preliminary investigation, discussed in the next section, is often requested to gather
those details.

The steering-committee method brings high respectability and visibility to the review of project
proposals. The committee consists of managers with the responsibility and the authority to
decide which projects are in the best interests of the entire firm.

Because several levels of management are included on the committee, members can have
informed discussions on matters relating to day-to-day operations (treating patients, ordering
materials, or hiring staff members) and long-range plans (new facilities, new programs) that may
have a bearing on the project request. The managers provide practical information and insight
about operations and long-term development.

Systems specialists on the committee provide technical and developmental information that is
useful in reaching decisions about project management.

The steering committee approach is often favored because systems projects are business
investments. Management, not systems analysts or designers, selects projects for development.
Decisions are made on the basis of the cost of the project, its benefit to the organization, and the
feasibility of accomplishing the development within the limits of information systems
technology in the organization.

Information Systems Committee Method

In some organizations, the responsibility for reviewing project requests is assigned to a
committee of managers and analysts in the information systems department. Under this method,
all requests for service and development are submitted directly to a review committee

1. Upper-management members: Executive vice president

Vice president for manufacturing

Departmental management: Manager of retail marketing Credit manager

Technical managers:

Manager of research and development Quality control coordinator

Information systems group: Data processing manager Senior systems analyst

The committee receives proposals and evaluates them. The major responsibility of the committee
is to make a decision, which often requires more information than the proposal provides.
Therefore, a preliminary investigation, discussed in the next section, is often requested to gather
those details.

The steering-committee method brings high respectability and visibility to the review of project
proposals. The committee consists of managers with the responsibility and the authority to
decide which projects are in the best interests of the entire firm.

Because several levels of management are included on the committee, members can have
informed discussions on matters relating to day-to-day operations (treating patients, ordering
materials, or hiring staff members) and long-range plans (new facilities, new programs) that may
have a bearing on the project request. The managers provide practical information and insight
about operations and long-term development.

Systems specialists on the committee provide technical and developmental information that is
useful in reaching decisions about project management.

The steering committee approach is often favored because systems projects are business
investments. Management, not systems analysts or designers, selects projects for development.
Decisions are made on the basis of the cost of the project, its benefit to the organization, and the
feasibility of accomplishing the development within the limits of information systems
technology in the organization.

Information Systems Committee Method

In some organizations, the responsibility for reviewing project requests is assigned to a

committee of managers and analysts in the information systems department. Under this method,
all requests for service and development are submitted directly to a review committee within the
information systems department. The information systems committee approves or disapproves
projects and sets priorities, indicating which projects are most important and should receive
immediate attention.

This method can be used when many requests are for routine services or maintenance on existing
applications. For these projects, information systems staff members can offer good insight into
project requirements. In addition, by working with other projects (and by coordinating their
efforts with the organization's business planning committee) systems developers can have access
to information about where the firm is moving overallan important consideration for effective
project selection.

Sometimes, such as when major equipment decisions must be made or when long-term
development commitments are needed to undertake a project, the decision authority is shared
with senior executives who determine whether a project should proceed. However, sharing
project decision authority may confuse users who want to know how the committee will make
the decision about a request. In addition, if top managers and systems-committee members
disagree about the merit or priority of a request, the potential for conflict can disrupt the handling
of future project proposals. In still other cases, users may attempt to submit a request directly to
senior executives after the information systems committee has disapproved it.

If upper management approves the request, the authority of the information systems committee is
undermined.

User-Group Committee Method

In some organizations, the responsibility for project decisions is delegated to the users
themselves. Individual departments or divisions hire their own analysts and designers, who
handle project selection and carry out development. In effect, departments form their own

selection committeesuser-group committees controlling what is developed and when it is

implemented.

Although the practice of having user committees both choose and develop systems does take
some of the burden from the systems development group, it can have disadvantages for the users.
For example, a number of small departments working independently toward the same goal could
unknowingly waste resources and miss the opportunity to coordinate planning of a shared and
integrated information system that could benefit the entire firm. A company's computer facilities
can be unduly strained if the systems development team is not made aware of the future demands
on the facilities that are being planned throughout the firm. Some user groups may find
themselves with defective or poorly designed systems that require additional time and effort to
undo any damage caused by the misinformation that such systems could generate. Although user
groups may find the decisions of steering committees and information systems committees
disappointing at times, the success rate for users who take on the development job is not very
encouraging.

Membership often rotates under each of these committee formats, with individuals serving for,
say, six- or twelve-month periods. Membership changes are staggered to avoid changing the
entire membership at one time. The chairperson of each committee should have experience in
serving as a committee member and in reviewing systems proposals and making decisions about
project requests.

Other Methods
Other approaches are also tried from time to time, although usually with much less success than
the methods already discussed. Some organizations have management planning committees that
propose new projects, which are in turn evaluated by the systems department staff members. This
method suffers from lack of user involvement, as well as limited insight into technology.

In still other cases, department managers are able to bypass the organizations' information
systems departments to contract within dependent systems companies, which handle all analysis
and design work for projects. A disadvantage of this approach is the possibility that a department
can sponsor the development of a system while the information systems group or upper
management is completely unaware that a project is in the making.

PROJECT PLANNING
Project planning is part of project management, which relates to the use of schedules such
as Gantt charts to plan and subsequently report progress within the project environment.
Initially, the project scope is defined and the appropriate methods for completing the
project are determined. Following this step, the durations for the various tasks necessary to
complete the work are listed and grouped into a work breakdown structure. Project planning is
often used to organize different areas of a project, including project plans, workloads and the
management of teams and individuals. The logical dependencies between tasks are defined using
an activity network diagram that enables identification of the critical path. Project planning is
inherently uncertain as it must be done before the project is actually started. Therefore the
duration of the tasks is often estimated through a weighted average of optimistic, normal, and
pessimistic cases. The critical chain method adds "buffers" in the planning to anticipate potential
delays in project execution. Float or slack time in the schedule can be calculated using project
management software. Then the necessary resources can be estimated and costs for each activity
can be allocated to each resource, giving the total project cost. At this stage, the project schedule
may be optimized to achieve the appropriate balance between resource usage and project
duration to comply with the project objectives. Once established and agreed, the project schedule
becomes what is known as the baseline schedule. Progress will be measured against the baseline
schedule throughout the life of the project. Analyzing progress compared to the baseline schedule
is known as earned value management.
The inputs of the project planning phase 2 include the project charter and the concept
proposal. The outputs of the project planning phase include the project requirements, the project
schedule, and the project management plan.
The Project Planning can be done manually. However, when managing several projects, it
is usually easier and faster to use project management software.

PROJECT ESTIMATION
In the Estimate Costs process, the cost of each project activity is estimated. An interesting
thing about this process is that it also uses the same three tools used in the Estimate Activity
Duration process. In the estimate activity duration process, you were determining the time taken
by each activity and now, in estimating costs process, you have to calculate the total cost of the
project.
Since I have written a blog post explaining three common tools between these two
processes, I thought it would make more sense if I write a separate blog post for estimating costs
process because of the similarities between these two processes.
In this process, the cost of each activity is determined, which includes the cost of human
hours, the cost of equipment, and the cost of materials used. It also includes the contingency cost
that is the cost to cover the identified risks.
4 tools to estimate costs in project management:

Analogous Estimating
Parametric Estimating
Bottom up Estimating
Three point Estimating

Analogous Estimating
This technique is used to estimate the project cost when very little detail about the project
is available. Therefore, this technique does not provide a very reliable estimation. The primary
benefits of this technique are: it is very fast, less costly, and provides a quick result.
In Analogous Estimation, the cost of the project is guessed by comparing it with any
similar project previously completed by your organization. Here you will look into your
organizations historical records (i.e. in Organizational Process Assets) for previously completed
projects. You will select the project which is closest to your project. Once you get it, by using
your expert judgment you will determine the cost estimate of your current project.
The Analogous Estimating is also known as The Top-Down Estimating.
Parametric Estimating
This technique also uses historical information to calculate the cost estimates. However,
there is a difference between this technique and the analogous estimation technique.
Parametric Estimation technique uses historical information along with statistical data. It
takes variables from the similar project and applies them to the current project. For example, in
the previous project, you will see that what the cost of concreting per cubic meter was. Then you
will calculate the concrete requirement for your project and multiply it with the cost obtained
from the previous project to get the total cost of concreting for your current project. In the same
way you can calculate the cost of other parameters (men, materials, and equipment) as well.
The accuracy of this process is better than the analogous estimation.
Three-Point Estimating
This technique is used to reduce the biases and uncertainties in estimating assumptions.
Instead of finding one estimate, three estimates are determined and then their average is taken to
reduce the uncertainties, risks, and biases.
PERT (Program Evaluation And Review Technique) is the most commonly used method
in three point estimation technique.

Project Monitoring and Control Introduction

According to the Project Management Body of Knowledge (PMBOK), the Monitoring
and Control Process Group consists of those processes performed to observe project execution

so that potential problems can be identified in a timely manner and corrective action can be
taken, when necessary, to control the execution of the project.
Project Monitoring and Control activities take place in parallel with Project Execution
Process Group activities so that, while the project work is being executed, the project is being
monitored and controlled by implementing the appropriate level of oversight and corrective
action.
The project is observed and measured regularly against the project plan to ensure that the
project is within acceptable variances of cost, schedule and scope, and that risks and issues are
continually monitored and corrected as needed.
The main purpose of monitoring and controlling activities is to be proactive in finding
issues ahead of time and taking corrective action. Corrective action can require revisiting
Planning Process Group and updating the Project Management Plan as needed with the ultimate
goal of bringing the project back in line with project objectives and constraints and improving
future execution to avoid repeating the same issues.
Monitoring and Control Processes
Monitoring and Control processes include:
1. Monitoring and Controlling Project Work
The Monitoring and Controlling Project Work process collects, measures and
disseminates performance information, and assesses measures and trends to forecast potential
items requiring corrective action. This includes monitoring project risks and ensuring that they
are being managed according to the projects risk plans.
Outputs include:
1. Recommended corrective actions
2. Recommended preventive actions
3. Forecasts
4. Recommended defect repair
5. Requested changes
2. Integrated Change Control
The Integrated Change Control process ensures that changes as a result of project
corrective actions and other controlling factors are managed across the project knowledge areas.
Integrated change control takes place throughout the project, from project initiation through
project closure.
Outputs include:

1. Approved change requests

2. Rejected change requests
3. Updates to the Project Management Plan
4. Updates to the Project Scope Statement (and requirements)
5. Approved corrective and preventive actions
6. Approved defect repair
7. Validated defect repair
8. Deliverables
3. Scope Verification
The scope verification process ensures that project deliverables are formally accepted.
Outputs include:
1. Accepted deliverables
2. Requested changes
3. Recommended corrective actions
4. Scope Control
The Scope Control process ensures that changes to project scope are controlled.
Outputs include:
1. Updates to the Project Scope Statement and Scope baseline (this includes requirements)
2. Updates to the Work Breakdown Structure (WBS) and the WBS Dictionary
3. Requested changes
4. Recommended corrective actions
5. Updates to organizational process assets
6. Updates to the Project Management Plan
5. Schedule Control
The Schedule Control process monitors and controls changes to the project schedule.
Outputs include:

1. Updates to the schedule model data and baseline

2. Performance measurements
3. Requested changes
4. Recommended corrective actions
5. Updates to organizational process assets
6. Activity list and activity attribute updates
7. Updates to the Project Management Plan
6. Cost Control
The Cost Control process monitors and controls costs and changes to the project budget.
Outputs include:
1. Cost estimate updates
2. Cost baseline updates
3. Performance measurements
4. Forecasted completion
5. Requested changes
6. Recommended corrective actions
7. Updates to organizational process assets
8. Updates to the Project Management Plan
7. Performing Quality Control
The quality control performance process measures specific project results to determine
whether the project is meeting quality standards.
Outputs include:
1. Quality control measurements
2. Validated defect repair
3. Updates to the quality baseline
4. Recommended corrective and preventive actions
5. Requested changes

6. Recommended defect repair

7. Updates to organizational process assets
8. Validated deliverables
9. Updates to the Project Management Plan

8. Managing the Project Team

This process tracks team member performance, provides feedback, resolves issues and
coordinates changes to maintain and improve project performance.
Outputs include:
1. Requested changes
2. Recommended corrective and preventive actions
3. Updates to organizational process assets
4. Updates to the Project Management Plan
9. Performance Reporting
The Performance Reporting process collects and distributes performance information
including status reports, progress reports and forecasts.
Outputs include:
1. Performance reports
2. Forecasts
3. Requested changes
4. Recommended corrective actions
5. Updates to organizational process assets
10. Managing Stakeholders
This process manages stakeholder communications and works with stakeholders to
ensure that requirements are satisfied and issues are proactively resolved.
Outputs include:
1. Resolved issues

2. Approved change requests

3. Approved corrective actions
4. Updates to organizational process assets
5. Updates to the Project Management Plan