Feasibility Study

For
Payroll Management System
(PMS)

Prepared by: DELTA Pvt Ltd.

March 20, 2015

…Towards Global
Sustainable Development

53 Colaba Estate, Victoria Lane,

Maharashtra, 400112
Phone:-022-634567, 55678
Fax:-022- 656473
Email:[email protected]
Website: - www.Deltadevlopers.Com

Copyright© by Rohan Chavan, permission is granted to share, modify and distribute this document.

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 Approval Page & Document Control (History and Distribution)

1. Approval

DELTA and Archway team members shall approve this document.

2. Document Change Control

Current Release: v1.0

Date of Last Review: March 24, 2015
Date of Next Review: April 5,2015
Target Date for Next Update:

3. Revision History
Revision Revision Date Description of Change Author/Modifier
v1.0 March 24, 2015 Initial Document (Draft Copy) Mr. Rohan Chavan

4. Distribution List
This following list of people shall receive a copy of this document every time a new version of this
document becomes available:
Recipient Name Recipient Organization Distribution Method
DELTA Team:
Mr. Rohan Chavan DELTA Confidential
Mr. Vikas Gupta DELTA Confidential
IT/PMS Team DELTA Confidential
Archway Team:
Mr. Deepak Gupta Archway Confidential
Mr. Atul Gupta Archway Confidential
Ms. Disha Agarwal Archway Confidential

5. Document Approvals

5.1 Team One Approval (here, DELTA)

________________________ ____________
Mr. Rohan Chavan Date

5.1 Team Two Approval (here, Archway)

________________________ ____________
Mr. Deepak Gupta Date

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 Table of Contents
1 Introduction.............................................................................................................. 4
2 Executive Summary................................................................................................. 4
2.1 Project Phase..................................................................................................... 4
3 Condition Brief and Design Summary......................................................................5
3.1 Domain Description........................................................................................... 5
3.2 Design Summary............................................................................................... 6
3.2.1 Design Methodology.................................................................................... 6
4 Scope of work.......................................................................................................... 6
4.1 Problem Definition............................................................................................. 6
4.2 Existing System & Its Limitations.......................................................................7
4.3 Objective........................................................................................................... 8
5 Implementation........................................................................................................ 8
5.1 Testing and Implementation..............................................................................8
5.1.1 Validation Checks:....................................................................................... 8
5.2 Implementation:................................................................................................ 8
6 Analysis and Evaluation........................................................................................... 9
6.1 Feasibility Analysis............................................................................................. 9
6.2 Requirement Analysis...................................................................................... 10
6.2.1 System Requirements................................................................................ 11
6.3 Technical Risks................................................................................................. 12
7 Financial Projections............................................................................................... 12
7.1 Capital Cost:-................................................................................................... 12
7.2 Recurrent Costs:-............................................................................................. 13
8 Findings and Recommendations............................................................................. 13
9 Results and Evaluation........................................................................................... 14
9.1 Adequacy and Coverage..................................................................................14
9.2 Efficiency and Effectiveness............................................................................ 14
9.3 Productiveness................................................................................................. 14
9.4 Elegance and User-friendliness........................................................................14
9.5 Quality assurance............................................................................................ 14
10 Schedule............................................................................................................. 14
11 Terms and Condition........................................................................................... 15

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1 Introduction
Archway Consulting seeks a service provider to design, test, implement, and manage an integrated payroll
solution and provide training to human resources (HR) staff on the use and functionality of the solution.
Archway Consulting currently maintains a limited HR staff and does not have internal information
technology (IT) or payroll software expertise. Current payroll infrastructure is outdated and the ability to
upgrade the existing infrastructure does not exist. Archway Consulting expects that by upgrading to a new
and robust payroll system with outsourced management, they will experience fewer payroll issues,
accomplish payroll and accounting tasks in less time, and realize a long-term cost savings across their HR
department.

Delta Payroll Services understands the problems caused by inefficient and outdated payroll systems and
believes it can provide Archway Consulting with the most cost-effective solution. Our payroll solutions
provide efficient and upgradable platforms which are easy to use, manage, and modify. Once the solution is
implemented, our clients have access to 24-hour support throughout the life of the service. Our team of
experts is always on hand to assist our clients and we pride ourselves on the exception customer support that
we offer. Delta Payroll is confident that it can provide Archway Consulting with a superior payroll solution
and support in order to meet its long-term goals.

2 Executive Summary
Delta Payroll Services helps its clients achieve success by establishing goals and a comprehensive solution
based on our clients’ needs. Our goals reinforce the commitment we have to our clients:
1) Provide leading edge payroll solutions which are cost-effective, flexible, and technologically
advanced
2) Guarantee on-time payroll, accounting, and tax distribution and reporting
3) Guarantee 24 hour coverage and support for our clients and superior customer service
Delta Payroll’s proposed solution allows us to meet these goals as well as those of SSEF Consulting. Delta
Payroll uses a phased approach to determining the best solution for our clients. Additionally, all Delta
Payroll employees maintain certifications in appropriate professional organizations and industry fields. All
Delta Payroll accountants are certified public accountants (CPAs). All Delta payroll managers are certified
payroll management program (CPMP) certified. Delta Payroll also maintains a staff of tax attorneys for
auditing and oversight purposes.

2.1 Project Phase

Phase I: Initial Consultation
During this phase our team of experts will review current payroll and accounting systems and practices in
order to determine pain points and leverage our expertise to develop a more detailed list of options for the
client.
Phase II: Solution Design
Our experts will work with the client to design the solution based on the needs of the company. This tailored
approach allows DeltaPayroll to ensure the client gets the solution they need and does not have to pay for
excess services which they will not use.

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Phase III: Implementation
Our team will implement the solution in a seamless manner that will be transparent to daily operations. This
phase also marks the beginning of DeltaPayroll’s management of client payroll and accounting operations
and the completion of the solution project as we enter the operations and management stage.
Phase IV: Management and Support
This is the final phase and ongoing through the life of the service. DeltaPayroll will manage all payroll and
accounting functions based on the accepted solution. Services and functionality include:
- Monthly, quarterly, and annual tax statements and payment records
- Account/payroll balancing and reconciliation
- Withholding management
- Benefits and benefit summaries
- Accounts payable
- All payroll and accounting distribution and management
- Inventory account balancing
- Cash on hand

Benefits for choosing DeltaPayroll for your payroll solution include:

- Reduced monthly costs for payroll and accounting activities
- Latest technology and upgradable solutions
- Professional staff providing superior customer service and support
- Flexibility to adapt solution to business environment, operations, and growth
- No cost for initial consultation and recommendations
- Our solution will allow your HR staff to focus on improving your business operations
- All DeltaPayroll staff is fully certified and accredited in appropriate professions

3 Condition Brief and Design Summary

3.1 Domain Description
Industry employs full-time and casual (contractual) academics. Employees in the Personnel Department will
use the system to maintain employee information, manage leave, and make payments to the academics every
fortnight. The Payroll system can add new employees and delete employees. It can manage annual and long-
service leave as well as record any sick leave. The system must pay each academic the correct amount, on
time, and by the payment method requested by an academic. Employees in the Personnel Department will
access system via a Windows-based desktop interface.

However, the system will also provide a web-based access (called Academic Kiosk) to full-time academics
to view their payment details, leave balances, and personal information. Some of this information, such as
personal details and payment method, can be updated by academics using the web-based interface. The
Payroll system verifies if the total hours worked so far do not exceed the number of hours agreed in the
contract. The contract information is maintained by another system called Contracts Management, however
the Payroll system stores basic information about contracts, in particular hourly rate for each contract. The
industry deducts standard tax rates from payments made to full-time academics. Casual academics can
request receiving payment notifications by mail or by email. Fulltime academics employees do not receive
payment notifications but they can use Academic Kiosk to query the system about fortnightly payments, total

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salaries received year-to-date, tax and other deductions, leave balances, etc. As mentioned, Academic Kiosk
can be used to modify personal details and payment method. The academics can choose the payment method.
The payments can be mailed (as bank cheques) to academics to the postal address of their choice.
Alternatively, the payments can be directly deposited into an academic’s bank account.

3.2 Design Summary

3.2.1 Design Methodology

The method that we have used for designing this system is “Structural Design”. In the structure-
oriented approach, the problem is viewed as a sequence of things to be done. A number of functions
are written to accomplish these tasks. The primary focus is on functions. A typical program
structure for structural programming is as follows:

In a multi-function program, many important data items are placed as global so that they may be accessed by
all the functions. Each function may have its own local data. Global data are more vulnerable to an
inadvertent change by a function. This provides an opportunity for bugs to creep in. Another serious
drawback with the structural approach is that it does not model real world problems very well. Along with
the disadvantages the structural design has various advantageous features, which encouraged us to use the
structural approach.
Some of the striking features that encouraged us for using structural design are:
1. Emphasis is on doing things (algorithms).
2. Large programs are divided into smaller programs known as functions.
3. Most of the functions share global data.
4. Data move openly around the system from functions to function.
5. Functions transform data from one form to another.
6. Employs top-down approach in program design.

4 Scope of work
4.1 Problem Definition

Managing employee’s information of a particular organization or for a small group is a tedious task. It has to
store all the necessary records for each and every employee within the organization to assign correct task to
correct person and right salary and perks to their eligible employees. Manual record keeping is a time taking

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process. As it causes delay in making query and generating the final results. Due to complex environment
and working procedures, it is not possible to handle all the information with accuracy.

4.2 Existing System & Its Limitations

The organization is maintaining most of their day-to-day transaction data in the registers. The
employee of the organization are doing whole work manually. All the work is done manually, so different
employees are appointed for the maintainance of registers obtaining all the information related to the
organization
It is very time consuming and is also not error free in some situation .In existing manual system
database calculations are difficult to perform so report generation as very much difficult.
Generally whenever we implement a new system it is develop to eliminate the shortcoming of an
existing system. The computerized system has more edge over the manual system. It is because of accuracy,
high-speed, quick result, diligence etc. The existing system is totally based on manual system. Existing
system has many draw backs in comparison of computerized system.

Time Consuming:
High time consumption is the main weakness of the existing system. A lot of time is wasted in searching
records from different files, which resulted in loss of time, and moreover workload is increases. Also a lot of
time wasted in duplicating the same entries in different registers

Service & Working condition:

With the unusual delay due to various reason, the costumer suffers a lot. Without any firm reason he
has to wait which disfigures the working condition.

Difficulties in retrieving Information:

Sometimes, to get any type of instant information more than one document needs to be searched .This
requires the opening of both files and then combining the information. Further this files may not be indexed
according to the need, which causes difficulty in retrieving information.

Not Easy to Understandable by new users:

To understand the manual system the user have to get more practice and have a grape all that help by
other employee and have to be in contact with that person. If the person was in leave the user can get info
from him.
Need more Space to store:
Here by using a paper work system the user need to maintain all the documents in proper way to
avoid the difficulty in action and need more space to store these document because they can’t destroy the old
documents
Very Expensive:
The existing manual method is very expensive method as lot of paperwork has to be done and a lot
of wastage of manpower, which increase the expenses of existing system.

Data Sharing:
The different user in different department cannot share data simultaneously.

4.3 Objective
Employees are the backbone of any company; their management pays a major role in deciding the success of
the organization. Employee information management helps in deciding the future management needs and

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any changes that has to be made for greater productivity. It keeps the records of the functions performed by
the individual employee playing a vital role at the time of performance appraisal. Employee management
software can carry out many functions like employee data analysis, employee monitoring, centralized
employee database, management of the time sheet, etc. The usage of payroll management system would
ultimately reduce the overall management costs thus ensuring greater profits and reduced burdens. The
system is very easy to use and can adjust into any business frame.
We need to develop such a payroll system that can perform following tasks-
 Can enter the new employee entry.
 Can see the existing employee detail.
 Can maintain the existing employee salary record.
 Can make a new month salary.

That system should support organizations to maintain the salary record of its employees.

5 Implementation
5.1 Testing and Implementation
5.1.1 Validation Checks:
In the text boxes like name, first name, last name etc., only alphabets and number could be entered thus if the
operator by mistake enters other special characters, it would not be entered. In the text boxes like a contact
number only numbers could be entered. If the users do not fill any of the fields, which could not be empty, a
message would be displayed asking to enter the required parameters.
When a user starts the applications, a login form will be displayed prompting to enter the username and
password, if even any one of them is not matched with the details stored in the database, the user will be
warned to re-enter the correct details. While entering the details of new customer, the customer number
which cannot be null value will be automatically generated. This is one greater than the highest number
existing previously. When the details of one customer are modified even if one parameter is missed a
message will be displayed asking to enter complete details.

5.2 Implementation:
When a new system needs to be implemented in an organization, there are three different ways to adopt this
new system: The big bang adoption, phased adoption and parallel adoption.
Parallel adoption: The old and the new system are running parallel, so all the users can get used to the new
system, and meanwhile do their work using the old system.
Phased adoption: The adoption will happen in several phases, so after each phase the system is a little
nearer to be fully adopted.
Big bang adoption: The switch between using the old system and using the new system happens at one
single date, the so called instant changeover of the system. Everybody starts to use the new system at the
same date and the old system will not be used anymore from that moment on.
Since our system is completely independent from the existing system and makes no use of the
existing system, the implementation method used is the Big Bang Adoption. User documentation does not
need to be updated during the implementation process, because it happens in such a short period. There are
no special interfaces needed to be able to get used to the new system, because the new system is all there is.

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6 Analysis and Evaluation

6.1 Feasibility Analysis

We have analyzed the feasibility of the system in terms of following spans:
 Technical Feasibility
 Operational Feasibility
 Economic Feasibility
 Schedule Feasibility
 Behavioral Feasibility

Technical Feasibility:
The development process of Payroll Management System would be advantageous to the
organization because we would make use of only the currently available resources of the organization. All
the tools needed for the development are already available with the organization and the organization does
not have to acquire any new resources. The technical feasibility is also attributed to the fact that the system
does not make use of any additional or external third party components which can lead to increased load on
the system.
The aspects of our study included the following factors.
Front-end selection:
1. It must have a graphical user interface that assists employees that are not from IT background.
2. Scalability and extensibility.
3. Flexibility.
4. Robustness.
5. According to the organization requirement and the culture.
6. Must provide excellent reporting features with good printing support.
7. Platform independent.
8. Easy to debug and maintain.
9. Event driven programming facility.
10. Front end must support some popular back end like oracle 11g.
According to the above stated features we selected Visual Studio 2013 as the front-end for developing our
project.

Back-end Selection:
1. Multiple user support.
2. Efficient data handling.
3. Provide inherent features for security.
4. Efficient data retrieval and maintenance.
5. Stored procedures.
6. Popularity.
7. Operating System compatible.
8. Easy to install.
9. Various drivers must be available.
10. Easy to implant with the Front-end.
According to above stated features we selected Oracle 11g as the backend.
The technical feasibility is frequently the most difficult area encountered at this stage. It’s essential that the
process of analysis and definition be conducted in parallel with an assessment to technical feasibility. It
centers on the existing computer system (hardware, software etc.) and to what extent it can support the
proposed system.

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Operational Feasibility:
The Payroll Management System is intended to provide a very user-friendly and easy to use
interface which is beneficial for both the visitors as well as the operators who help in providing support for
the system. This system would also be easily acceptable among the visitor and administrator, as there is no
need of any special skill set for using the application. This system also benefits the users as they do not have
to download anything on their terminals increasing their efficiency and ease of use.
It is mainly related to human organizations and political aspects. The points to be considered are:
• What changes will be brought with the system?
• What organization structures are disturbed?
• What new skills will be required? Do the existing staff members have these skills? If not, can they be
trained in due course of time?
The system is operationally feasible as it very easy for the End users to operate it. It only needs basic
information about Windows platform.

Economic Feasibility:
The Payroll Management System has a very low development cost. The low cost is attributed to
the usage of the existing resources of the organization. As the website is very user friendly and easy to use,
there is no need to provide special training to the users of the website, thus saving valuable time and money.
The financial and the economic questions during the preliminary investigation are verified to estimate the
following:
• The cost to conduct a full system investigation.
• The cost of hardware and software for the class of application being considered.
• The benefits in the form of reduced cost.
• The proposed system will give the minute information, as a result the performance is improved which in
turn may be expected to provide increased profits.
• This feasibility checks whether the system can be developed with the available funds. The Payroll
Management System does not require enormous amount of money to be developed. This can be done
economically if planned judicially, so it is economically feasible.

Schedule feasibility:
Projects are always given deadlines. Every project is completed in a specific duration. I was the
only working on the project and I had the project duration of two months only. So i have tried our level best
to fulfill each and every requirement. I had to complete the project in time and if it is not possible to
complete the software in time then I would try our best to fulfill client requirements.

Behavioral Feasibility:
Many times creates problem when someone tries to harm the system with malicious intensions. For
this reason many people need some kind of network monitoring system.

6.2 Requirement Analysis

Nowadays, the world is moving at a lightening swiftness and so is computer field. It is advancing each and
every day. Initially the work of project management was done manually and the data was kept in files but
now the technology is such that each employee who is part of project management team has all the projects,
their phases, reports all at hand. Due to which user can quickly know regarding the status of any project and
its progress. Such is the technology which is increasing at a very fast pace. This system has been made so,
that user can work faster and in a much better environment.

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6.2.1 System Requirements
6.2.1.1 Functional Requirements:
 Function 1: Administration of the Application
Function Purpose and Priority
Administrator can create new roles/rights/users and edit the existing roles/rights/users.
Function Inputs
Create User: - User name, Full Name, Password.
Create Rights: - Give rights to the user
Function Operations
Create User: - The admin fills the information about the user and selects rights to be given to the
user clicks on the “Save” button.
Function Outputs
Create User: - New user is created and assigned to the selected rights and then added in the database.
Edit User: - Changes made to the user information are saved.
 Function 2: Manage Employee Data
Function Purpose and Priority
It stores detailed employee profile including his/her personal information, qualification profile,
experience profile and basic salary information.
Function Inputs
Personal Details: Name, Address, Contact, Date of Birth, Sex etc.
Qualification Profile: Qualification, Grade, Passing Year, Institute.
Experience Profile: Worked As, Nos. Working Years, Working Category
Basic Salary Information: Designation, Department, Scale, Date of
Joining, Applicable allowances and deduction and bank information etc.
Function Operations
The employee details can be added, edited and deleted by the users who have enough authority for
the functions.
Function Outputs
The user authentication is checked against the operation used by the user. If user is not allowed to
access the asked operation he/she is reported by the application
 Function 3: Designation History
Function Purpose and Priority
The past data of the employee designation and his/her progress throughout career is maintained.
Function Inputs
Designation, Type, Date of Joining, Reason for new designation etc.
Function Operations
The user fills the input details save.
Function Outputs
The current designation is upgraded. New scale is assigned and joining date, month of increment is
changed.
 Function 4: Increment and Incentive Detail
Function Purpose and Priority
The functions allows to keep track of the increments/incentives given to the employee.
Function Inputs
Date, Nos of increment/incentives, Reason.
Function Operations
The user can add increment/incentives records.
Function Outputs

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 The current basic is upgraded according to the given increment/incentives based on the employee’s
scales.
 Function 5: Scale Prediction
Function Purpose and Priority
This is the analytical tool which allows to generated data showing the normal progress of any
employee in future
Function Inputs
Selects employee, Starting Date (Joining date, Current date), Ending date, and the years after which
the scales should be upgraded.
Function Operations
Generates the data including year and basic of the employee according to the given inputs.
Function Outputs
Shows graphical view of the generated prediction.

6.2.1.2 Non-Functional Requirements:

 Hardware Requirements:
233 MHz Pentium processor or other compatible
Intel Chipset Motherboard
512 MB SD-RAM
4 GB hard disk
 Software Requirements:
Operating System -Windows 7 onwards
Application Software –Visual Studio 2013
Database Tool – Oracle 11g

6.3 Technical Risks

Various techniques like Brainstorming can be used to evaluate risk factors. Various risks that may be
involved in our project are listed below:
 There could be failure of database system so complete backup of system should be provided.
 Since it is a web based software, so if internet is not available 24*7 it would result in failure of
system.
 Unauthorized access will result in system shut down and uncertain shut down might result in some
problems.
 Unavailability of adequate testing facilities.
 Turnover of essential personnel.
 Unachievable performance requirements.
 Lacking of training on new technologies.

7 Financial Projections
The following cost summary has been developed as an estimate of the costs associated with the proposed
solution. These costs are an estimate only. Based on acceptance of this proposal, our team will work with
you to develop a detailed list of requirements, develop your tailored solution, and provide a more focused
and applicable cost estimate.

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 7.1 Capital Cost:-

Name Remaining Cost Cost BCWS EAC

Scope र 2,280.00 र 2,280.00 र 2,280.00 र 2,280.00
Analysis/Software र 9,950.00 र 9,950.00 र 7,760.00 र 9,950.00
Requirements
Design र 7,770.00 र 7,770.00 र 0.00 र 7,770.00
Development र 66,000.00 र 66,000.00 र 0.00 र 66,000.00
Testing र 15,400.00 र 15,400.00 र 0.00 र 15,400.00
Training र 7,200.00 र 7,200.00 र 0.00 र 7,200.00
Documentation र 19,000.00 र 19,000.00 र 0.00 र 19,000.00
Pilot र 7,000.00 र 7,000.00 र 0.00 र 7,000.00
Deployment र 7,400.00 र 7,400.00 र 0.00 र 7,400.00
Post Implementation Review र 3,240.00 र 3,240.00 र 0.00 र 3,240.00
Closure र 0.00 र 0.00 र 0.00 र 0.00

Note: - cost for hardware purchase is not mentioned.

7.2 Recurrent Costs:-

Recurrent cost May include, cost for further upgradation of system or newer version. Such as, including new
features, operations or functions. Upgradating to newer version might even require hardware upgrade.

8 Findings and Recommendations

Based on the information presented in this feasibility study, it is recommended that Archway approves the Payroll
management system and begins project initiation. The findings of this feasibility study show that this initiative
will be highly beneficial to the organization and has a high probability of success. Key findings are as follows:

Technology:
 Will utilize existing technology which lowers project risk
 E commerce infrastructure will be contracted out to vendor which allows Archway to share risk
 Once in place this technology is simple to operate and maintain for a relatively low cost

Marketing:
 This initiative will allow Archway to reach large number of target groups electronically at a low cost
 Archway can expand their base beyond geographic areas where and can establish independent branches.
 ABC is able to differentiate itself from its competitors and will utilize incentive programs to target new
consumers

Organizational:
 Minimal increases to staffing are required with no changes to organizational structure

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 Not much facilities or capital investments are required

Financial
 The system will help them to maintain their accounts properly.
 Clear and concise data availability will lead to better organizational governance.
 This will terminate assets dissipation.

9 Results and Evaluation

9.1 Adequacy and Coverage
 The payroll software can perform the following functions
 Store employee information
 Calculate gross and net pay, and determine tax deductions to be made
 Print pay slips for each month, showing year-to-date totals
 Create and maintain a ledger containing all necessary records of employee payments
 Provide the user with adequate help by the user manual with the software

9.2 Efficiency and Effectiveness

 The payroll software calculates the total earnings of the employee and automatically updates the
employee’s earning to date.
 The employers can set different rates for employees.
 The software does its calculations in a very clear and concise manner. All calculations are guaranteed
accuracy.

9.3 Productiveness
 The payroll software gives the employee the ability to keep track of their earnings by printing their
payslip for each month.
 It gives the employers the ability to keep records of how much they pay out as salaries by creating a
ledger that can be used to filter out results by employee, month, and year.

9.4 Elegance and User-friendliness

 The different tasks and functions are outlined in a very simple and clear manner for the users.
 The help file can be used by the users to know how to use the payroll software.
 The interface is very simple and not complicated to allow for easy usage .

9.5 Quality assurance

 The software was fully tested to ensure it is relatively error free and that it computes results
correctly, including deductions such as taxes.
 The software provides a better, time saving and efficient way of keeping track of employee’s
earnings by speeding up calculations, and reducing paperwork by keeping efficient electronic
records.

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