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APPENDIX 14.1
APPENDIX 14.1
TECHNIQUES FOR GATHERING AND ORGANIZING FACTS
Techniques for Gathering Facts
Techniques for gathering facts include reviews of documents and records, observations, interviews, and questionnaires. All of these techniques may be employed
during systems surveys and analyses, as well as during
the design phase. Usually, the fact gatherers are systems
analysts or accountants, although auditors employ most
of the techniques in the course of audits.
Reviews of Documents and Records Documents
and records, such as journal vouchers and charts of accounts, provide considerable insights to systems analysts. For instance, a chart of accounts shows how the
present accounting information system (AIS) is structured. Reviews of documents and records should normally precede most of the other data-gathering
techniques. In addition to affording an overview of the
firm and its system, they provide a basis for comparison.
Procedures manuals, for example, show how the system
is designed to work. The procedures described therein
can be compared with facts gathered concerning how
the system actually is working at present. Any differences that are found point to possible problems.
Where possible, the reviews can extend to reports
from previous studies. Examples are audit reports prepared by internal auditors and management letters prepared by independent external auditors. These reports
and letters usually identify weaknesses and recommend
improvements to controls and other aspects of the information system.
Observations Through observations, a systems analyst can become familiar with the setting, relationships,
and constraints of a system. Often an experienced analyst can spot weaknesses, especially if the visit is unannounced. For instance, a walk through the production
area may reveal that employees tend to be unproductive
and careless. The act of observing also provides verification. For example, assertions made through documents
or questionnaires may be checked firsthand.
Observations can be combined with data-organizing
techniques to good effect. Work sampling is an example
of a technique that can be used effectively with the observation technique. Work sampling consists of taking
observations at randomly selected times in order to determine the extent to which resources are being used
productively. For instance, an analyst may observe the
activity in the shipping department at random times for
a week. During each observation, the analyst counts the
number of employees who are performing productive
tasks. At the end of the week, he or she can extrapolate
the sampled observations to estimate the productivity
level of the department. Thus, the analyst might estimate that the department has an average level of 75 percent productivity. If expected productivity is at a level of
90 percent, the actual level indicates a productivity
problem.
Interviews
Interviewing is perhaps the single most
popular and important data-gathering technique. Interviews with managers enable information needs to be
discovered. Interviews with employees as well as managers can clarify problems found through document reviews and observations. Equally important, interviews
provide a natural means of involving managers and employees in systems development.
Good interviewing is an art that can be learned. It is
based on sound psychological principles and interviewing theories. The guidelines in Figure A14.1-1 provide an
introduction to this important technique; however, its
mastery requires further study and practice.
Although critical to systems development, interviews
do have two potential shortcomings. On the one hand,
interviewees may be biased or too anxious to please.
Thus they may provide false or misleading information.
On the other hand, interviewees may be antagonistic or
too busy. In such cases they are likely not to cooperate.
In addition, interviews can be quite time consuming for
the analyst. This drawback especially applies to the unstructured or open-ended type of interview in which the
interviewee is encouraged to talk freely and to ramble
from one topic to another. Furthermore, numerous interviews are often necessary in order to draw together all
the “pieces of the puzzle” when problems are complex. If
time is short, the questionnaire (discussed next) may be
preferable.
Questionnaires A questionnaire is a standardized
list of questions. It is an efficient means of surveying
when brief answers are desired. For instance, an internal
control questionnaire is used to ascertain which specific
controls are absent in an accounting information system. That is, it determines the facts concerning a situation or question. In contrast, personnel questionnaire
can be used to ascertain the opinions of employees and
managers concerning a policy, procedure, or other matter relating to the firm.
The processes of administering and evaluating questionnaires are capable of automation. Respondents can
answer questions that are displayed on terminal or microcomputer screens, using keyboards or light pens. The
accumulated responses are evaluated by means of ap-
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1. Ascertain the interests, background, and responsibilities of the person to be interviewed before the interview.
2. Gather facts concerning the matters to be discussed beforehand.
3. Prepare a list of the questions to be asked during the interview.
4. Obtain approval from the interviewee’s superior for the interview.
5. Make an appointment that is convenient with the interviewee and be on time.
6. Notify the interviewee beforehand of the purpose of the interview and of the matters
that it will cover.
7. Open the interview by explaining the interviewer’s role in the study, then draw out information by pertinent questions, especially concerning the interviewee’s knowledge
of the situation, needs for information, and ideas for improvements.
8. Listen carefully to the interviewee’s answers without interruption.
9. When conversing do not resort to jargon, broad generalizations, personal opinions, or
irrevelant comments.
10. Be natural, but businesslike, so that the interview flows easily.
11. Maintain a courteous, respectful, tactful, and friendly manner throughout the interview.
12. Ask permission to take notes or use a tape recorder during the interview.
13. End the interview with a summary of the discussion, a thank you, and a prompt exit.
14. Shortly after the interview, review and complete the notes taken or conversation
recorded; send a copy of the notes to the interviewee for review and correction.
FIGURE A14.1-1 A list of interviewing guidelines.
propriate software, which in some cases can incorporate
expert systems.
Questionnaires have one major failing. They do not
enable respondents to provide in-depth answers in an
easy manner. Thus it is often necessary to follow up
questionnaires with interviews that explore the reasons
for certain answers.
Techniques for Organizing Facts
Analyzing and designing information systems entails
coping with numerous facts and complex relationships.
During the past 50 years, a variety of diagrammatic and
graphic techniques have been devised to organize and
model these facts and relationships. Most of the factorganizing technques are useful for both (1) analyzing a
current system and (2) documenting the features of a
new or improved design. Experienced systems analysts
should be capable of applying the great majority of the
techniques. Accountants who are involved in systems
analysis and design should be familiar with most techniques and able to apply several.
Categories of Techniques Fact-organizing techniques may be categorized in various ways. Certain techniques present conceptual and/or logical views, which
focus on what processes are performed or what data are
handled by an information system. Other techniques fo-
cus on physical aspects, which emphasize how an information system functions and what facilities it employs.
Certain techniques present broad views that may span
entire firms or major functions, other techniques provide very narrow and detailed views, while still other
techniques range from very broad to quite detailed. Finally, some techniques are members of integrated
frameworks known as structured and object-oriented
systems development, while other techniques have been
employed in traditional or classical systems development efforts.
In this section, our major attention is devoted to
structured techniques, especially those that are relatively broad and conceptual. Traditional techniques are
briefly covered.
Structured Techniques Structured systems development represents a disciplined application of the topdown approach, using a variety of structured techniques.
Three major benefits are provided by structured systems
development: (1) greater efficiency in the systems development process, (2) greater consistency throughout the
designed system, and (3) better communication between systems analysts and the prospective users of the
newly designed systems. Because of these benefits,
structured techniques have become more widely used
than traditional techniques. It should be mentioned,
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APPENDIX 14.1
however, that some analysts question whether the resulting system designs are of significantly higher quality
than when traditional techniques are employed; thus
both sets of techniques need be considered.
Characteristics Structured systems development begins with an integrated view of the overall information
system or of the portion of the system within the scope
of a systems project (i.e., the module). Through systematic decomposition, the module is divided into smaller,
more detailed submodules. Each submodule is more
manageable and understandable for purposes of analysis and design, while still tying back to the integrated
view. The focus of structured techniques is on the conceptual and logical, rather than the physical, data and
information flows and relationships. As a result, the project team can focus on what needs to be done and produced rather than on exactly how to process and
generate information.
Specific Structured Techniques Most of the available
structured techniques are listed in Figure A14.1-2 together with examples of traditional techniques. Since
these techniques are used as documentation of an AIS as
well as tools of analysis, several appeared in Chapters 4
and 5. Structured techniques introduced and illustrated
included the entity-relationship diagram, data-flow diagram (with context diagram), structure chart, and data
dictionary. These diagrams developed through key structured techniques have close relationships to each other.
Structured Techniques
Entity-relationship diagrams
Data-flow diagrams
Structure charts
Decision trees
Decision tables
Data dictionaries
HIPO diagrams
State-transition diagrams
Structured English
Pseudocode
Traditional Techniques
System flowcharts
Work distribution charts
Work measurement analyses
Input-output matrices
Space layout diagrams
Form analysis sheets
Record layouts
FIGURE 14.1A-2 Systems analysis and design techniques.
Example An example involving data-flow diagrams and
structure charts should reinforce your understanding of
the nature of strucutured techniques. Figure A14.1-3 presents a high-level structure chart having a hierarchy of
three levels and pertaining to the sales transaction processing system. Each successive level provides a more detailed (decomposed) view of activities specified at the
next higher level. Submodules at the second level represent four activities involved in the sales processing system. In turn, submodules at the third level represent more
detailed activities of each activity at the second level. Furthermore, each submodule at the third level can be decomposed into even more detailed activities at a fourth
level. For instance, “prepare sales invoice” can be broken
down into several detailed steps or activities, such as “access sales order and shipping data” and “enter heading of
sales invoice.”
The activities portrayed by a high-level structure
chart can alternatively be shown by means of data-flow
diagrams. Each level of the structure chart can be paralleled by one or more separate data-flow diagrams. The
second level of the structure chart, for instance, translates into a data-flow diagram similar to the one shown
in Figure 12-5. Similarly, the third level of the structure
chart can be represented by four data-flow diagrams.
These data-flow diagrams articulate (interlock) with
other data-flow diagrams at higher and lower levels, just
as the submodules of a structure chart link to each other.
Figure A14.1-4 shows two data-flow diagrams that articulate with each other. The data-flow diagram at the
left in the figure shows the details of the process in the
structure chart submodule labeled “Ship goods to customer.” As we can see, the processes (circles) in the
data-flow diagram correspond to the submodules at the
next lower level in the structure chart. The data-flow diagram at the right in the figure shows an even more detailed view of the process labeled “Ship and record
shipment.”
Traditional Techniques Well before the introduction of structured techniques, a variety of techniques
were devised and employed to meet the needs of specific systems development situations. These techniques
have been loosely associated with what has been called
traditional systems development.
Benefits of Traditional Techniques Techniques in this
category generally involve physical aspects of an information system. Thus they continue to have useful roles
to play in systems analysis and design. First, they provide a means of organizing physical facts concerning systems components, such as inputs and storage. They
therefore enable a project team to analyze the facts in a
more efficient manner. Second, they provide clear documentation of the physical aspects of the present system,
as well as of a new system being considered. This documentation is beneficial in gaining acceptance of systems
analysis reports.
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Process
sales
transactions
Obtain
order
data
Check
validity
of data
from
customer
Check
credit
Ship
goods to
customer
Prepare
sales
invoice
Prepare
sales
order
Pick
goods
from
warehouse
Update
inventory
records
Check
goods
Prepare
reports for
management
Bill
customer
Move
goods
for
shipment
Ship
and
record
shipment
Update
customer
records
Prepare
accounts
receivable
aging
report
Prepare
inventory
status
report
FIGURE A14.1-3 A high-level structure chart of the sales transaction processing system.
Specific Traditional Techniques A list of traditional
techniques that are widely used appears in Figure
A14.1-2. Perhaps the most familiar technique is the
system flowchart. As noted in Chapters 2 and 5, the
system flowchart appears in a variety of forms, such as
the process flowchart, document flowchart, and computer system flowchart. Sometimes accompanying a
computer system flowchart are program flowcharts,
which provide the details of the processing steps or
runs.
Other useful traditional techniques include work
distribution charts, work measurement analyses, inputoutput matrices, space layout diagrams, from analysis
sheets and record layouts. Record layouts were illustrated in Chapter 4. The remainder of the listed techniques will be briefly described.
Form analysis sheets are used to facilitate the design
of hard-copy documents and forms. An example is
shown in Figure A14.1-5. Work distribution concerns the
distribution of times spent on various tasks within an activity or organizational unit. A work distribution chart
portrays in matrix format the times worked by each employee on each task. Figure A14.1-6 shows a work distri-
bution chart for a shipping department. Upon analyzing
the data in such a chart, a systems analyst can more easily spot inequities and inefficiencies. After determining
improvements, the analyst can then reflect the revised
allocation of tasks in a new chart.
Numerous measurements are necessary to trace
and analyze the flows related to an information system.
A typical data flow is the number of sales orders received
in one week; an analysis of this flow may be in terms of
the number of sales orders by various size ranges. Work
measurement consists of measuring work flows, for example, rates of output or levels of productivity. For example, if a clerical employee spends 20 hours processing 400
purchase orders, then his or her rate of output is 20 purchase orders per hour. Work measurement analysis provides a means of evaluating work performances. First,
work performance standards are established, usually by
means of time and motion studies. Then, the actual work
measurements are compared against the established
standards, and variances are computed.
An input-output matrix shows the relationships between data elements (inputs) and the reports (outputs)
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Warehouse
Inventory data
Billing
department
Back order data
Goods
Data (to
reduce
inventory
items)
Picking
data and
goods
Picking
data and
goods
Sales
order
department
Picking
data and
goods
Order data
2.1
Pick
goods
from bins
Shipping report
2.3
Check
goods
2.2
Update
inventory
records
Picking
data
Customer
Goods,
packing slip,
bill of lading
2.4
Move
goods for
shipment
Picking
data
Shipping
department
2.5
Ship and
record
shipment
Shipping report
Shipping data
Data flow
Shipping
department
2.51
Pack
goods
Picking
data
2.42
Prepare
bill of
lading
Packing
slip
Processing activity
Entity
Data store
Packing
slip
Shipping data
2.53
Register
goods
Shipping report
Bill of
lading
2.55
Deliver
via
shipper
Register
Shipping
report
2.54
Prepare
shipping
report
Bill of lading
Goods (with
packing slip)
Billing
department
Customer
FIGURE A14.1-4 Two levels of data-flow diagrams, based on a structure chart.
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The HIJ Company
Sales Order
Date Received
3-16-00
Customer’s Order Number
1738-6
Sold
to
Handy Warehousing Co.
718 South Desert
Phoenix, Arizona 85208
Ship
to
Handy Warehouse No. 5
6100 No. College Drive
Tempe, Arizona 85282
F.O.B.
Destination
Routing
Via Western Rail Lines
Product
number
Quantity
ordered
Unit of
measure
26-B
75-A
106-D
10
5
50
50 gal. dr.
Unit
Yard
No. 2653
Salesperson
K. Brown
Terms
Net 30 Days
Description
Cleaning Solvent
Steel Brush
Heavy Duty Hosing
Unit
price
76.50
8.75
5.07
Form No. HIJ162
Form Analysis Sheet
Title: Sales order
Form Number HIJ162
Purpose: To record on a firm form the receipt of an order, so that shipment of the
order can be assured.
Point of origin: Sales order department when customer’s order received.
Source of data: Customer’s order by letter, telegram, or call; salesperson’s order slip.
Method of preparing: Typed
Average lines of data: 11
Frequency of use: Daily
Annual quantity used: 2500
Peak weekly volume: 130
Size of form: 6 12 8 12 in.
Cost of preparing 100 forms: $145.00
Disposition–
Original : Sales order department
Copy 1 : Shipping department
Copy 2 : Billing department
Copy 3 : Acknowledgment to customer
Other copies: None
Other forms using data: Sales invoice, shipping order
Transcription onto machine-readable media: Magnetic tape
Files affected: Inventory, customer, open orders, various reference files
Volume of errors per week: 20 Approval signatures required: None
Data added after form originated: Back order number, if any; unit costs; freight cost
Use of form for internal checking and control: Initialed by clerks who review for
completeness and who enter in register; compared with shipping report
Remarks: No spaces for priority, delivery date scheduled, unit costs, special instructions
FIGURE A14.1-5 A sales order form and related form analysis sheet.
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2
1
No.
Preparing
shipping forms
and reports
Controlling
sales orders
102
35
Hours
per
week
CD–248
Reviewing
summary report
of shipments
Spot-checking
shipping order
file against
outstanding
order report
from sales order
department
Task
1
2
Hours
per
week
M. T. Sullivan
Job title:
supervisor
Shipping Dept.
Date Prepared:
June 2000
Activity
Employee(s)
Organizational Unit
Proofreading
typed bills of
lading for
accuracy and
completeness;
preparing
summary report
of shipments
from bills of
lading copies
Date-stamping
and checking
packing slip
copies from
warehouse to
shipping
copies; noting
unshipped
items on
shipping copies
Task
3
30
33
Hours
per
week
Employee(s)
Terry Frank &
Jim Williams
Job title:
shipping clerk
Task
Hours
per
week
Ralph Johnson
Job title:
traffic clerk
Employee(s)
Task
Hours
per
week
Paul Emerson
Job title:
expeditor
Employee(s)
Typing bills of
lading from
packing slip
copies; typing
summary report
of shipments
Task
8
60
Hours
per
week
Employee(s)
Linda Dent &
Sandra Pyle
Job title:
typist
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Totals
Performing
miscellaneous
activities
280
33
25
25
60
Preparing letters
and memos;
conferring with
vice-president
of marketing
and other
department
heads
Handling
customers’
inquires
regarding
shipments
Training
employees and
observing their
performances;
checking
employees’
attendance;
answering
employees’
questions
Preparing work
assignments for
shipping
handlers
40
8
3
8
2
2
12
2
Collating bills
of lading and
shipping orders
to be sent to
billing
department
Handling
customer’s
inquiries
regarding
shipments
Collecting
packing slips
and spotchecking
weights of
packed
shipments
against weights
noted on
packing slip
copies by
handlers
FIGURE A14.1-6 A work distribution chart for a shipping department.
6
Following
status of sales
orders and
shipments
Supervising
shipping
activities
4
5
Scheduling
routing, and
dispatching
shipments
3
80
4
2
8
Preparing special
instructions for
shippers
Answering
inquiries of
shippers
regarding routes
and charges
Maintaining file
of shipping rates;
entering shipper,
schedule, route,
and charges for
shipments on
packing slip
copies
40
1
1
37
1
Picking up and
delivering papers
dealing with rush
orders; filing
Following
progress of
special orders
through
production an
into shipping
area
Helping speed
shipments and
eliminating
bottlenecks
Delivering bills
of lading to
shippers’
representatives
for signature
40
3
2
14
9
12
Typing
correspondence
and packing
labels; filing
80
8
4
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X
X
X
X
X
Sales analysis by product
X
Sales analysis by salesperson
X
X
X
X
X
X
X
X
Shipment record
Date of event or output
Customer order number (sales branch)
Name of customer (customer’s order)
Address of customer (customer’s order)
Place to be shipped (customer’s order)
Quantities ordered (customer’s order)
Product numbers (customer’s order)
Product description (product file)
Back order
Data Element and Source
Bill of lading
Sales order–invoice
Output
Sales flash report
APPENDIX 14.2
Inventory flash report
•
Delayed order report
CD–250
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
FIGURE A14.1-7 Portion of an input-output matrix.
in which they appear. Figure A14.1-7 shows an inputoutput matrix pertaining to the purchases transaction system. It highlights reports that are redundant or
that can be combined with other reports. For instance,
the receiving register in effect duplicates the receiving
report; it may therefore be replaced by a copy of the receiving report. Other useful matrices show relationships between (1) users and the reports they receive,
(2) data items and the files in which they are stored,
and (3) organizational units and related responsibilities.
Floor-plan-like diagrams, called space layout diagrams, can aid in arranging the physical and paperwork
flows. For purposes of analysis, the current flows can be
superimposed onto the space layout. Then proposed
flows can be drawn onto another copy of the space layout. Scaled cutouts of desks, machines, and other fixtures are helpful in trying different arrangements.
APPENDIX 14.2
ECONOMIC FEASIBILITY COMPUTATIONS
Several methods are available by which to evaluate the
economic feasibility of a proposed system design. Perhaps the most suitable method in most cases employs
the net present value of an investment as the decision
criterion. Other methods use the payback period and
the benefit-cost ratio as the criteria. An investment in information systems resources is no different, economically speaking, from investments in a delivery truck or a
headquarters building. That is, it is based on principles
embodied in capital budgeting, an area in which accountants should be well versed.
Net Present Value
A discounted cash-flow model is used to find the net
present value of an investment. Future cash inflows and
outflows are discounted to the present time and compared. If the total present value of cash inflows exceeds
the total present value of cash outflows, the net present
value is positive. The investment is then evaluated as
being economically feasible. If the net present value is
negative, however, the investment is considered to be
economically infeasible.
Estimates or measures of the following factors are
needed in order to compute the net present value of an
investment:
1. The cash outflows, such as the acquisition cost of
the system (e.g., computer hardware and software), plus the operating and maintenance costs
of the system during its economic life.