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1) The Training staff is hostile to the idea of using a unified project management
system.
2) The Training unit manager Ketcham is politically at odds with Evans and the
Systems staff because of his demotion to a unit manager. This may affect his
willingness to cooperate in developing a new system, which may hinder progress
and success.
3) Training staff members use computers in different ways than the Systems staff.
They are mostly writers and graphic artists, or specialists who are likely not
willing to spend a significant amount of time learning a computer system.
Therefore, the system has to be relatively simple to use, and not require extensive
training, to have a fair chance of success.

Answers to Review Questions

1. What are the five major project fundamentals?

The five major project fundamentals are:

A. Project initiation
B. Determining project feasibility
C. Scheduling of the project
D. Managing activities
E. Managing team members

2. List three ways to find out about problems or opportunities that might call for a systems solution.

Three ways to find out about problems or opportunities are:

A. Checking output
B. Observing or researching employee behavior
C. Listening to feedback from external sources

3. List the five criteria for systems project selection.

The five criteria for systems project selection are:

A. Management backing
B. Adequate time frame
C. Alignment with organizational goals
D. Adequate resources on the part of the analyst and the organization
E. The worthiness of the project

4. Define technical feasibility.

A project is technically feasible if the technology is available and capable of

meeting users’ requests.

5. Define economic feasibility.

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Chapter 3 Systems Analysis and Design Instructor’s Manual 3-15

A project is economically feasible if costs do not overshadow benefits.

6. Define operational feasibility.

A project is operationally feasible if the proposed system will operate and be

used once it is installed.

7. List four criteria for evaluating system hardware.

They are time required for average transactions, total volume capacity of the system, idle time of
the central processing unit, and size of memory provided.

8. What are the three main options for the acquisition of computer hardware?

They are buying, leasing, and renting.

9. What does COTS stand for?

COTS is an acronym for commercial off-the-shelf.

10. List five of the many benefits of cloud computing for organizations.

The benefits of cloud computing for organizations are less time spent maintaining legacy systems
or performing routine tasks such as maintenance or upgrading of present systems. It may make it
simpler to acquire IT services and may also make it easier and quicker to separate from or
discontinue services that are no longer necessary. Using cloud services makes your applications
scalable. It provides consistency across multiple platforms perhaps previously disjointed or
difficult to integrate. No capital is tied up, and no financing is required.

11. List three of the many drawbacks of cloud computing for organizations.

The drawbacks of cloud computing are the loss of control of data stored in the
cloud, if the cloud services provider ceased to exist, it is unclear what would
happen to the organization’s data, potential security threats to data that is
not stored on premises or even on the organization’s own computers.
reliability of the Internet as a platform, the prospect that the company could
get stuck using application programming interfaces (APIs) that are
proprietary with the cloud provider.

12. What does BYOD stand for?

BYOD stands for “bring your own device.”

13. What are the benefits of BYOD to an organization?

The benefits of BYOD to and organization are a potential for lowering the
initial cost of organizational IT hardware purchase, facilitating remote ’round–
the-clock access to corporate computer networks regardless of location.

14. What are the benefits of BYOD to an employee?

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The benefits of BYOD to an employee building employee morale and building

on a familiar user interface to access corporate computing services,
applications, databases, and storage.

15. What is the biggest drawback of BYOD for an organization?

The biggest drawback of BYOD for an organization is the security risks posed
by untrained users

16. What are three main categories of cloud computing?

The three main categories of cloud computing are Software as a Service

(SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS).

17. Define tangible costs and benefits. Give an example of each one.

Tangible costs are those that can be accurately projected by systems analysts
and the business’ accounting personnel; for example, the cost of equipment,
costs of resources, and cost of systems analysts’ time. Next, tangible benefits
are advantages measurable in dollars that accrue to the organization through
use of the information system; for example, increase in speed of processing,
and getting information on a timelier basis than before.

18. Define intangible costs and benefits. Give an example of each one.

Intangible costs are those that are difficult to estimate, and may not be
known; for example, the cost of losing a competitive edge, and declining
company image. Next, intangible benefits are advantages from the use of the
information system that are difficult to measure; for example, improved
effectiveness of decision-making processes and maintaining a good business
image.

19. List four techniques for comparing the costs and benefits of a proposed
system.

They are break-even analysis, payback, cash-flow analysis, and present value
methods.

20. When is break-even analysis useful?

Break-even analysis is useful when a business is growing and volume is a key

variable in costs.

21. What are the three drawbacks of using the payback method?

The three drawbacks of the payback method are: (a) it is strictly a short-term
approach to investment and replacement decision, (b) it does not consider
the importance of how repayments are timed, and (c) it does not consider
total returns from the proposed systems project that may go well beyond the

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payback year.

22. When is cash-flow analysis used?

Cash-flow analysis is used to examine the direction, size, and pattern of cash
flow associated with the proposed information system.

23. As a general guideline, when should present value analysis be used?

Use present value when the payback period is long, or when the cost of
borrowing money is high.

24. What is work breakdown structure (WBS), and when should it be used?

A work breakdown structure (WBS) are the tasks or activities that a project is
broken down into. Each task has a deliverable and is assigned to an individual or
team, and has a responsible person monitoring and controlling performance.

25. What is a Gantt chart?

A Gantt chart is a chart on which bars represent each task or activity. The length of each bar
represents the relative length of the task.

26. When is a PERT diagram useful for systems projects?

PERT charts are useful when activities can be done in parallel rather than in sequence.

27. List three advantages of a PERT diagram over a Gantt chart for scheduling systems projects.

Three advantages of a PERT chart over a Gantt chart are:

A. Easier identification of the order of precedence

B. Easier identification of the critical path and critical activities
C. Easier determination of slack time

28. Define the term critical path.

The critical path is the path that will cause the whole project to fall behind schedule if one day’s
delay is encountered on it.

29. How does a project manager assess the risk of things going wrong and take that into
consideration of the time needed to complete the project?

The project manager must look at the size of the project. If it is large, it should be broken down
into smaller projects. Another factor is team members may take longer on their current project or
that key managers would not be able to interview during the needs requirement phase. The project
manager must add some additional time as a buffer.

30. What costs need to be estimated to prepare a budget?

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The costs that need to be estimated to prepare a budget are the hours worked and the rates of pay
for each of the internal or outsourced workers, the hardware and software costs and how
much of each type of equipment is needed and the costs involved with training.

31. Why is preparing a budget so important for a systems analyst who is managing a project?

Preparing a budget is a critical deliverable and is important for a systems analyst who is
managing a project because every client wants to see a detailed budget early in the process.

32. What three instances call for expediting a systems project?

The three instances that call for expediting a systems project are getting a
bonus if you finish sooner, project team resources and team members can be
used for some other project, reducing the time it takes to complete an entire
project.

33. What does crash time mean when expediting a project?

When expediting a project, crash time means the absolute minimum time in
which an activity can be completed if additional money is funneled to that
activity.

34. What is earned value management (EVM)?

Earned value management (EVM) is a technique used to help determine

progress or setbacks on a project.

35. What are the four key measures in earned value management?

The four key measures in earned value management are budget at

completion (BAC), planned value (PV), actual Cost (AC) and earned value
(EV).

36. For what purposes can a systems analyst use earned value management?

The purposes that a systems analyst can use earned value management are
to be aware of
cost and address the budgetary implications when unexpected delays or cost
overruns occur.

37. List the two types of team leaders.

Two types of team leaders are (a) task leaders and (b) socioemotional
leaders.

38. What is meant by dysfunctional team norm?

A dysfunctional team norm is a norm that hinders team progress.

39. What is meant by team process?

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Chapter 3 Systems Analysis and Design Instructor’s Manual 3-19

“Team process” is the interaction that occurs among team members.

40. What are three reasons that goal setting seems to motivate systems analysis team members?

Three reasons that goal setting motivates team members are: (a) the very
act of setting challenging and achievable goals and periodically measuring
performance against the goal seems to motivate individuals, (b) team
members know exactly what is expected of them and are afforded some
autonomy in achieving the goal, and (c) the setting of goals clarifies what
must be done in order to get results.

41. What are four ways in which ecommerce project management differs from traditional project
management?

The four ways that ecommerce project management differs from traditional
project management are:

A. The data used by ecommerce systems is scattered across the organization.

B. Ecommerce systems need a staff with a wide variety of skills.
C. Partnerships must be built externally and internally well ahead of implementation.
D. Security is of utmost importance.

42. What elements are contained in a project charter?

The project charter contains the following elements:

A. User expectations or objectives and how the system will achieve the objectives.
B. The scope or boundaries of the project.
C. The analysis methods used to interact with users in gathering data, developing, and
testing the system.
D. The key participants and how much time are users willing and able to commit to
participating.
E. The project deliverables.
F. The people that will evaluate the system and how they will evaluate it.
G. The estimated project timeline and how often the project milestones are reported.
H. The people that will train the users.
I. The people that will maintain the system.

43. What is a fishbone diagram used for?

A fishbone diagram (also called a cause-and-effect diagram or an Ishikawa diagram) is used to

illustrate what can go wrong in a project. It systematically lists all of the possible problems that
can occur.

44. What are the three steps the systems analyst must follow to put together an effective systems
proposal?

They are effectively organizing the content, writing in a professional style, and orally presenting
the proposal in an informative way.

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45. List the 10 main sections of the systems proposal.

The 10 main sections of the system proposal are:

A. Cover letter
B. Title page of project
C. Table of contents
D. Executive summary (including recommendations)
E. Outline of systems study with appropriate documentation
F. Detailed results of systems study
G. Systems alternatives (three or four possible solutions)
H. Systems analysts’ recommendations
I. Summary
J. Appendices (assorted documentation, summary of phases, correspondence, etc.)

Problems
1. Williwonk’s Chocolates of St. Louis makes an assortment of chocolate candy
and candy novelties. The company has six in-city stores, five stores in major
metropolitan airports, and a small mail order branch. Williwonk’s has a small,
computerized information system that tracks inventory in its plant, helps
schedule production, and so on, but this system is not tied directly into any of
its retail outlets. The mail order system is handled manually.

Recently, several Williwonk’s stores experienced a rash of complaints from

mail order customers that the candy was spoiled upon arrival, that it did not
come when promised, or that it never arrived; the company also received
several letters complaining that candy in various airports tasted stale.
Williwonk’s has been selling a new, low-carb, dietetic form of chocolate made
with sugar-free, artificial sweetener. Sales have been brisk, but there have
been problems shipping the wrong type of chocolate to an address with a
diabetic person. There were a number of complaints and Williwonk’s sent a
number of free boxes of chocolate to ease the situation.

Management would like to sell products using the Web but only has a few
Web pages with information about the company and an order form that could
be printed. Web ordering does not exist. One of the senior executives would
like to sell customized chocolates with the name of a person on each piece.

Although the production area has assured management that this could be
easily done, there is no method to order customized chocolates. Another
senior executive has mentioned that Williwonk’s has partnered with several
European chocolate manufacturers and will be importing chocolate from a
variety of countries. At present, this must be done over the phone, with
email, or by mail. The executive wants an internal website that will enable
employees to order directly from the partner companies. All this has led a
number of managers to request trend analysis. Too much inventory results in
stale chocolate, whereas at other times there is a shortage of a certain kind

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