Systems Analysis

1. Chapter 17 Systems Analysis

2. Integrated Systems Are used by many organizations to control office costs and improve their operating efficiency. Areas typically incorporated into integrated systems include these: Sales Finance Production Purchasing Marketing

3. Are often comprised of several subsystems, which commonly encompass the organization’s functional areas. Integrated Systems

4. Functional Systems and Subsystems Incorporate Several Components: Employees Equipment Forms/ Materials

5. Is a series of subsystems comprised of interrelated procedures to help achieve a well-defined goal. System Consist of related methods necessary to complete various work processes. Procedures

6. Objectives for Developing and Using Systems 1. To maximize the efficient utilization of the organizational resources. 2. To control operating costs. 3. To improve operating efficiency. 4. To help achieve the objectives of the organization. 5. To help carry out the various functions of the organization.

7. Advantages of Systems 1. Various functions of the organization are better coordinated. 2. Wasteful, unproductive, and uneconomical activities are eliminated. 3. The operating efficiency of the organization is improved. 4. More effective control can be exerted over various activities and functions.

8. Disadvantages of Systems 1. A certain amount of operating flexibility may be destroyed when using a system. 2. Any inefficiency that is built into the system likely will disproportionately increase as work flows through the system. 3. A totally integrated system may be affected somewhat when changes are made in one of its subsystems.

9. Characteristics of Well-Designed Systems Flexible Adaptable Systematic Functional Simple Resourceful

10. Elements of Systems (1 of 2) Flow of work through a system begins with the input of some type of resource. Input The transformation of input into desired output takes place during the processing element, which is composed of methods and procedures. Processing

11. Elements of Systems (2 of 2) Interaction between the input and processing elements produces output. Output Enables the system to determine whether results are meeting expectations. Feedback Has both internal and external dimensions. Controlling

12. Is the result of increasing the amount of technological integration used in designing operating systems and procedures. Knowledge Management 1. Is emerging from what used to be known as document management. 2. Involves capturing and communicating information to those who seek it or who need it. 3. Involves providing information to the right person at the right time.

13. Systems and Procedures Staffing Alternatives Outside consultants Part-time Systems Staff Full-time Systems Staff

14. Factors That Determine Which Staffing Alternative To Use 1. Size of the organization. 2. Type of the organization. 3. Organization’s commitment to the total or integrated systems approach. 4. Philosophy of top management toward the systems and procedures function. 5. Type and extent of technology incorporated into the system.

15. Outside Consultants Frequently are hired on a retainer basis. Advantages Provide expertise that may not be available with the other alternatives. Can be more objective in their recommendations. Are able to keep the system up to date. Disadvantage Are a costly alternative.

16. Full-time Systems Staff Enables the organization to develop and improve on a continual basis all of its systems and work processes. Advantages Help is available when needed. Disadvantage Potential conflict between line managers and the systems staff.

17. Part-time Systems Staff When an organization cannot afford the other alternatives, a part-time staff is usually used. Advantages Least costly alternative. Disadvantage Staff may not have time nor expertise to carry out needed assistance.

18. Steps Used in Designing or Modifying Systems 1. Clearly define the process to be studied. 2. Outline the details of the present process. 3. Analyze the present process. 4. Outline the improved process. 5. Install the new process.

19. Systems and Procedures Tools Workload Chart Flow Process Chart Office Layout Chart Right- and Left-Hand Chart Operator-Machine Process Chart Horizontal Flow Process Chart EDP Block Diagram

20. Workload Chart Is also referred to as work distribution chart. Identifies 1. Major activities performed by a given work unit. 2. Amount of time a work unit as a whole spends on each activity. 3. Activities performed by each employee and the amount of time he/she spends performing the activities.

21. Workload Chart Provides Answers To These Questions (1 of 2) 1. Is the work unit performing the work it is intended to perform? 2. Are employees performing too many duplicate operations? 3. Are the tasks that each employee performs of a related nature? 4. Are the special skills and talents of the employees being used to the fullest extent?

22. Workload Chart Provides Answers To These Questions (2 of 2) 5. Are the major functions of the work unit actually consuming the greatest amount of work time and effort? 6. Are the employees’ workloads evenly distributed? 7. Are the employees productive? 8. Is the flow of work efficient?

23. Documents Used in Workload Chart Method Used by employees to keep track of their daily activities. Daily Log Identifies the tasks per- formed by employees over a longer period of time. Summary Log Provides a composite list of departmental activities listed in descending order. Activity List

24. Flow Process Chart Is especially useful for identifying each step in a specific work process. Various steps comprising a process are categorized as: Operation Transportation Inspection Delay Storage

25. Each operation step is classified as a get ready, do, or put away step. Special attention should be focused on the do steps because if they can be eliminated, then the get ready and the put away steps can probably be eliminated as well.

26. Office Layout Chart Is frequently used in conjunction with the flow process chart. Is well-suited for visualizing workflow. Is used to identify backtracking, criss-crossing, and inefficient workflow patterns. Is completed by charting flow of work through the premises.

27. Right- and Left-Hand Chart Is used to identify hand movements in a particular work process. Categories of movement: Operation Transportation Hold Delay Contains space to summarize the present and proposed processes and differences between them.

28. Operator-Machine Process Chart Is used to study the relationship between an operator and the machine he or she uses. Focuses on the opportunities to eliminate, simplify, or combine as many steps as possible.

29. Horizontal Flow Process Chart Is useful for illustrating work processes that involve multicopy forms. Chart follows the movement of each copy of the form through a given work area. Is useful for outlining various procedures in each subsystem.

30. EDP Block Diagram Is used in working with a variety of computer- based processes. Involves a series of well-defined symbols that are interconnected with lines. Involves a series of steps for which a “yes” or “no” response is required.