Modern Systems Analysis and Design - Chapter 5
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Questions and Answers

What is the main objective of the project planning process?

  • To create a project plan and a project scope statement. (correct)
  • To establish the project team and assign roles and responsibilities.
  • To define the project scope, alternatives, feasibility and to identify resources.
  • To develop a project charter and a project scope statement.

    • Which of the following is NOT a type of feasibility assessment performed during project planning?

  • Technical feasibility
  • Operational feasibility
  • Marketing feasibility (correct)
  • Economic feasibility

    • What is a business case?

  • A formal document that outlines the project team's structure and responsibilities.
  • A document that justifies the need for an information system, including its economic benefits and costs. (correct)
  • A document that describes the project's budget and schedule.
  • A document that provides a detailed description of the project's technical requirements.

    • What is the purpose of the project scope statement?

    <p>To outline the specific deliverables and expected outcomes of the project. (A)</p> Signup and view all the answers

    What is the primary deliverable of the project initiation and planning phase?

    <p>A baseline project plan (BPP) and a project scope statement (PSS). (B)</p> Signup and view all the answers

    What are the key elements of project planning?

    <p>Project scope, project alternatives, project feasibility, project tasks, resource requirements, preliminary schedule, communication plan, project budget, and statement of work. (D)</p> Signup and view all the answers

    Which of the following is an example of an intangible benefit of an information system?

    <p>Improved customer service. (D)</p> Signup and view all the answers

    Which of the following is NOT a type of feasibility assessment?

    <p>Strategic (A)</p> Signup and view all the answers

    What is an example of a one-time project cost?

    <p>User training (B)</p> Signup and view all the answers

    What type of cost is incurred at a fixed rate and is billed or incurred at a regular interval?

    <p>Fixed (C)</p> Signup and view all the answers

    What is an example of an intangible cost?

    <p>Loss of customer goodwill (A)</p> Signup and view all the answers

    Which of these is NOT a recurring cost?

    <p>Systems development (A)</p> Signup and view all the answers

    What type of cost is associated with the ongoing evolution and use of a system?

    <p>Recurring cost (D)</p> Signup and view all the answers

    Which of these items is an example of a variable cost?

    <p>Long-distance charges (A)</p> Signup and view all the answers

    What is a cost that cannot be easily measured in terms of dollars?

    <p>Intangible cost (C)</p> Signup and view all the answers

    Which of these is a cost associated with the ongoing use of a system?

    <p>Incremental communications (A)</p> Signup and view all the answers

    What is one of the primary factors that increases project risk?

    <p>Larger project size (C)</p> Signup and view all the answers

    What is the primary purpose of a Baseline Project Plan (BPP)?

    <p>To guide the development team (D)</p> Signup and view all the answers

    Which situation reflects a lesser risk in system development?

    <p>Easily obtained requirements (C)</p> Signup and view all the answers

    Which of the following is a key factor in the development group's risk assessment?

    <p>Familiarity with similar systems (C)</p> Signup and view all the answers

    Which section of the Baseline Project Plan includes the project objectives?

    <p>Project Scope statement (A)</p> Signup and view all the answers

    What characteristic of a system typically contributes to a higher risk level?

    <p>Newly developed systems (C)</p> Signup and view all the answers

    What factors should be considered in determining the scope of a new system?

    <p>The range of potential system capabilities (B)</p> Signup and view all the answers

    What does the feasibility assessment section outline?

    <p>Technical difficulties and project costs (A)</p> Signup and view all the answers

    What is a critical concern when assessing operational feasibility?

    <p>Solving existing problems or leveraging opportunities (C)</p> Signup and view all the answers

    Which of the following risk assessment rules states that project size affects risk?

    <p>The first rule (C)</p> Signup and view all the answers

    What are structured walkthroughs designed to review?

    <p>Products created during system development (B)</p> Signup and view all the answers

    Which of the following is NOT a role in structured walkthroughs?

    <p>Quality assurance advisor (D)</p> Signup and view all the answers

    What factor contributes to making a project less risky regarding user groups?

    <p>Experience with application areas (C)</p> Signup and view all the answers

    What is the main concern related to scheduling feasibility?

    <p>Meeting organizational deadlines (B)</p> Signup and view all the answers

    Which section of the Baseline Project Plan outlines possible alternative solutions?

    <p>System description (C)</p> Signup and view all the answers

    What should be included in the project scope statement?

    <p>Project objectives (B)</p> Signup and view all the answers

    What is the present value of a future cash flow?

    <p>The current value of a future cash flow (B)</p> Signup and view all the answers

    What is the discount rate?

    <p>The rate of return used to compute the present value of future cash flows (A)</p> Signup and view all the answers

    Which of the following is NOT considered in assessing technical feasibility?

    <p>The number of users who will access the system (D)</p> Signup and view all the answers

    What is the main purpose of Break-Even Analysis (BEA)?

    <p>To identify the point where benefits equal costs (B)</p> Signup and view all the answers

    Which of the following is NOT a potential consequence of not assessing and managing risks?

    <p>Increased user satisfaction with the system (A)</p> Signup and view all the answers

    What is the time value of money concept?

    <p>The idea that money today is worth more than the same amount tomorrow (A)</p> Signup and view all the answers

    What is the formula for calculating Net Present Value (NPV)?

    <p>NPV = sum of PVs across years (C)</p> Signup and view all the answers

    Which of these options BEST describes the relevance of Technical Feasibility in project development?

    <p>It analyzes the organization's ability to construct the proposed system (B)</p> Signup and view all the answers

    What are some of the costs associated with a web-based system?

    <p>Platform, Content and service, and Marketing (D)</p> Signup and view all the answers

    What are some of the steps involved in presentation planning?

    <p>Identifying your audience, establishing the message you want to convey, and planning the presentation environment (D)</p> Signup and view all the answers

    What are some important considerations for presentation design?

    <p>Using a clear and consistent design, limiting unnecessary bells and whistles, and using appropriate supplemental materials (C)</p> Signup and view all the answers

    What are some tips for effective presentation delivery?

    <p>Practicing the presentation, arriving early, having a backup plan, and delivering information effectively (B)</p> Signup and view all the answers

    What are some of the activities needed to build and review the baseline project plan?

    <p>Identifying stakeholders, defining project scope, creating a work breakdown structure, and developing a project schedule (D)</p> Signup and view all the answers

    What are some of the methods for assessing project feasibility?

    <p>Market analysis, technical feasibility, operational feasibility, financial feasibility, and legal feasibility (D)</p> Signup and view all the answers

    'Content and service' web-based system costs?

    <p>Creative design/development, ongoing design fees, project management, site management, content staff, graphics staff, support staff, enhancement funds, licensing fees, programming, consulting, research, training, travel (A)</p> Signup and view all the answers

    What are some examples of 'Marketing' costs?

    <p>Direct mail, public relations, print advertising, paid website links, promotions, marketing staff, advertising sales staff (A)</p> Signup and view all the answers

    Study Notes

    Modern Systems Analysis and Design - Chapter 5

    •  This chapter focuses on initiating and planning systems development projects. 
    •  Learning objectives include describing project initiation and planning steps, listing and describing feasibility assessment methods, activities for building and reviewing baseline project plans, and the activities and roles in a structured walkthrough.
    •  The project initiation and planning (PIP) process aids in team organization for project planning. This is highlighted in the system development life cycle (SDLC) diagram.
    •  Key considerations when dividing PIP from analysis include effort level, responsibility, and the challenging nature of PIP as an activity in system development projects.
    •  Project initiation team establishment, customer relationship building, project initiation plan creation, management procedure development, project management environment and workbook development, and project charter creation are critical elements of the PIP process.
    •  Project planning involves defining clear, discrete activities and the required work for each project activity.
    •  The goal of project planning is creating a Baseline Project Plan (BPP) and a Project Scope Statement (PSS). 
    •  A business case justifies an information system, discussing tangible and intangible benefits and costs, and technical and organizational feasibility.
    •  Elements of project planning include describing scope, alternatives, and feasibility; dividing the project into tasks; estimating resource requirements and creating a resource plan; developing a preliminary schedule; and developing a communication plan.
    •  Further elements are determining standards and procedures, identifying and assessing risks, creating a preliminary budget, developing a statement of work, and setting a baseline project plan.
    •  A Baseline Project Plan (BPP) is a major outcome of the PIP phase, providing a detailed estimate of scope, benefits, costs, risks, and resource needs.
    •  The Project Scope Statement (PSS) is a customer-focused document detailing project deliverables and outlining all required work for project completion.
    •  Methods for assessing project feasibility include economic, technical, operational, scheduling, legal and contractual, and political factors.
    •  Economic feasibility assesses financial benefits and costs of a development project, often using cost-benefit analysis.
    •  Project reviews occur after each SDLC phase to determine whether to continue, redirect, or discontinue the project.
    •  Tangible project benefits are quantifiable in monetary terms, such as reduced personnel expenses, lower transaction costs, and higher profit margins. They fall into categories like cost avoidance/reduction, error reduction, improved flexibility, speed of activity, management improvement, and market/sales opportunities.
    •  Tangible project costs are those easily measured in monetary terms (hardware, labor, operational costs - including employee training and building renovation).
    •  Intangible benefits are difficult to quantify in monetary terms and may relate to organizational factors like improved employee morale, or societal factors like reduced waste.
    •  Intangible costs are also hard to quantify and might relate to goodwill loss, employee morale issues, or operational inefficiencies.
    •  One-time costs are associated with project start-up and development (system development, new hardware/software purchases, user training, site preparation, data conversion).
    •  Recurring costs are incurred through system use and evolution, relating to application software maintenance, data storage expenses, communication costs, software/hardware leases, and supplies.
    •  Costs may be fixed (regular intervals/fixed rate, e.g., facility lease) or variable (vary by usage, e.g., long-distance).
    • A structured walkthrough is a peer review process for any product created during the system development process. The roles involved include coordinator, presenter, user, secretary, standard-bearer and maintenance oracle, used for evaluating BPPs, systems specifications, design and program code, test procedures, manuals, and documentation.
    •  Time value of money (TVM) is the concept that money today is worth more than the same amount in the future, based on discount rate and present value of future cash flows.
    •  Project costs and benefits can be analyzed through Net Present Value (NPV) calculations, Return on Investment (ROI), and Break-Even Analysis (BEA), where costs and benefits are considered in time-value-of-money terms.
    •  Break-even analysis finds the point where projected project benefits equal costs in a given timeframe.
    • Assessing technical feasibility involves reviewing the development organization's capability to construct a proposed system considering potential target hardware, software, and operating environments, system size, complexity and developer experience with similar systems. Risk assessment of the project is also critical, including project size, organizational change, development team expertise, and user familiarity.
    •  Assessing operational, scheduling, legal/contractual, and political elements are important for ensuring a project is suitable.
    •  A baseline project plan (BPP) is a document guiding the development team with sections like introduction, system description, feasibility assessment and management issues.
    •  Project scope considerations include organizational units, current systems impacted, affected people, and potential system capabilities.
    •  E-commerce project initiation and planning (like Pine Valley Furniture) considers costs of web-based systems (platform-web hosting, server software, etc.), content and service (design costs, ongoing staff needs), and marketing costs. Benefits can relate to lowered transaction costs, repeat business, and market exclusivity. Costs and benefits include both tangible and intangible features.
    •  Feasibility concerns include factors like ongoing operational aspects (24/7 access, returns), technical facets (new skills and development), and strategic concerns (meeting deadlines, legal and contractual ramifications). A project schedule highlights project steps, durations, and the relationship between activities, such as the one shown for the Pine Valley Furniture WebStore project.

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    Description

    This quiz covers the key concepts from Chapter 5 of Modern Systems Analysis and Design, focusing on the initiation and planning stages of systems development projects. You will learn about project initiation steps, feasibility assessment methods, and the roles involved in project planning. Understanding the structured walkthrough process and the system development life cycle is emphasized.

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