CHAPTER 5:

Question 1

Operational Feasibility

Answer 1

The process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities.

Question 1

Why is a feasibility study important?

Answer 1

to determine whether a project has a reasonable chance of success.

Question 2

Technical Feasibility

Answer 2

Process of determining whether the organization has the technology resources to develop, purchase, install, and operate the system.

Question 3

PIECES framework

Answer 3

Performance
Information
Economy
Control
Efficiency
Services

Question 4

performance question

Answer 4

Does the current mode of operation provide adequate throughput and response time?
Is the new system going to be more efficient and high output?

Question 5

Information question

Answer 5

Does the current mode provide end users and managers with timely, pertinent, accurate and usefully formatted information?

Question 6

Economy question

Answer 6

Does the current mode of operation provide cost-effective information services to the business?
Could there be a reduction in costs and / or an increase in benefits?
Does the proposed system save more cost then older system?

Question 7

Control question

Answer 7

Does current mode of operation offer effective controls to protect against fraud?
Does current mode of operation guarantee accuracy and security of data and information?

Question 8

Efficiency question

Answer 8

Does the current mode of operation make maximum use of available resources, including people, time, flow of forms?
Do you need to hire / let-go people for the new system?
Do we have enough time to print daily report like before?

Question 9

Services question

Answer 9

Does the current mode of operation provide reliable service?
Is it flexible and expandable?

Question 10

Schedule Feasibility

Answer 10

The process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadlines and constraints for affecting change. there are many way to do this but the popular way is the Gantt chart

Question 11

Schedule question

Answer 11

How much time is given for the project by customer?
How much time do you need to deliver the system?
If time insufficient, can we negotiate more from customer?

Question 12

Economic feasibility

Answer 12

To concludes if the project can be done within the given budget and to determine the cost and benefit (including profit) from the project.

Question 13

Economic question

Answer 13

Consists of 2 tests :
Is the anticipated value of the benefits greater than projected costs of development? (cost / benefit analysis)
Does the organization have adequate cash flow to fund the project during the development period?

Question 14

Cost-Benefit Analysis

Answer 14

Process of identifying the financial benefits and costs associated with a development project
Is performed when:
Conducting a preliminary investigation.
Evaluating a project.
Making recommendations to management.

Question 15

Cost-Benefit Analysis

Answer 15

Process of identifying the financial benefits and costs associated with a development project
Is performed when:
Conducting a preliminary investigation.
Evaluating a project.
Making recommendations to management.

Question 16

Cost Classifications
Tangible / Intangible costs

Answer 16

tangible costs :
costs for which you can assign a specific dollar value
Example :
employee salaries
hardware and software purchases
office supplies

intangible costs :
costs whose dollar value cannot be calculated easily
Example :
customer dissatisfaction
lowered employee morale
reduced information availability

Question 17

Cost Classifications Direct / Indirect costs

Answer 17

Direct costs
costs that can be associated with the development of a specific system
Example :
salaries of project team members
purchase of hardware

Indirect costs
overhead expenses / costs that cannot be attributed to the development of a specific system
Example :
salaries of network administrators
copy machine rentals
insurance expenses

Question 18

Fixed / Variable costs

Answer 18

Fixed costs
costs that are relatively constant and do not depend on a level of activity or effort
Example :
salaries
hardware rentals

Variable costs
costs that vary depending on the level of activity
Example :
printer paper
supplies
telephone line charges

Question 19

Developmental / Operational costs

Answer 19

Developmental costs
costs that are incurred only once at the time the system is developed or acquired
Example :
salaries of people involved in system
development
software purchases
initial user training
purchase of necessary hardware or furniture

Operational costs
costs that are incurred after the system is implemented and continue while system is in use
Example :
system maintenance
ongoing training
annual software license fee
communications expenses

Question 20

Some costs apply to more than one category of expenses

Answer 20

Overtime pay for clerical staff during the systems analysis phase would be classified as developmental, variable, and direct
A monthly fee for maintaining the company’s Web site would be regarded as operational, fixed, and indirect
Direct costs usually are easier to identify and predict than indirect costs

Question 21

Positive / Cost-avoidance benefits

Answer 21

Positive benefits
Benefits that are a direct result of the new information system.
Example :
Increased revenues
Improved services
Higher morale
Better management

Cost avoidance benefits
Expenses that would be necessary if the new system is not installed.
Example :
Handling work with current staff instead of hiring
Not having to replace hardware and software