Welcome to the unit Develop and present a feasibility report (ICAD4043A). This unit is about researching and presenting a range of feasible scenarios or solutions for a client's business problem.
In this unit, you’ll do 5 tasks for a fictional manufacturer of small electrical appliances, NewElectrix. These tasks will allow you to demonstrate your skills and knowledge in Developing and presenting a feasibility report.
To do these tasks you’ll need to be able to:
- Analyse data and document client requirements
- Identify alternative solutions
- Examine alternative solutions against project constraints
- Develop and document a feasibility report
- Obtain client sign off on documentation
Activity 1.1: Data flow diagram

Figure 1: Data flow diagram
Q: Which guidelines have not been followed in the above data flow diagram?
A: There are some example of unfollow guidelines of this diagram.
- Process description must have a verb – appointment diary does not explain what this process does.
- Data flow description must only use a noun – check appointment does not describe the data that is coming from the data store.
- The data store must have a name
- Appointment confirmation data cannot go from the data store directly to the patient, it must go through a process.
- No data goes into the data store – if nothing goes into it we cannot get anything out of it!
Activity 1.2: Create a Diagram 0
Create a Diagram 0 for the following system.
In a payroll system the time cards are submitted by the employees, pay cheques are issued to the employees, and information on the employee is given to the Tax Department. Further investigation reveals the following major functions:
- Hours worked are verified against the time card file.
- Salary deductions are calculated using the tax table file.
- Pay cheques are prepared and sent to the employee.
- A tax report is prepared and sent to the tax department.
A: There is no one correct answer for a DFD but it should have the same external entities, data, data flows and processes.
Activity 1.3: Research CASE tools
There are many different CASE tools on the market which automate the business process and data modelling of the system, and provide tools for recording the information. Go to the Queens University School of Computing archives website: http://www.cs.queensu.ca/Software-Engineering/case.html and choose the Case tools by category search. You could also try itmWEB: http://www.itmweb.com/case.htm. Have a look at two or three different CASE tools and find one that covers the ‘upper’ CASE area that we would use in the information gathering phase of a project.
Q: Write a short report of its features and functions.
A: The following is a sample format for a report on a CASE tool, showing the main points that should be included.
A sample report should contain the following sections:
- Product name and vendor – cost of the tool, if available
- Parts of the SDLC that it can be used in
- Functions, e.g. 1) Requirements management, including operational, system, user, functional, and non-functional requirements. 2) Decomposition and merging of requirements. 3) Requirements evolution
- Features, e.g. 1) Requirements can be automatically captured from existing documents using Word / Excel plug-ins 2) Requirements can be organised and analysed using search, selection, decomposition and merge tools. 3) Changes can be managed by version control tools. 4.) Graphics and video can be integrated from other desktop tools. 5) Automatic logging of edits
Task 2: Identify alternative solutions
Activity 2.1: Preparing a business solution
Consider the following scenario and write a brief response to each of the four questions below. Think about what will you need to consider and document to prepare possible business solutions.
Scenario
Widgets-R-Us have had a good five years. Since their launch they have grown to become one of Australia's top 20 Widget manufacturers. They are looking to expand their head office - they currently lease half a floor in a city skyscraper and are planning to take over the lease of the whole floor in six months time.
Before they proceed with the expansion, they have asked your IT company to provide three options for installing an IT network in the new office area. There will be 30 new employees moving into the space.
They would like you prepare a feasibility report for the planned network installation.
Q1: What do you need to know before you can begin to look at alternatives for this network installation?
A1: The information given here is very general in nature. Your task will be made easier if you can identify specific restraints and client needs for the project.
Restraints and client needs you need to consider might include:
- Budget - how much do they want to spend?
- Time frame - when is the implementation needed and does installation need to occur at a time when business will not be effected?
- Scope of the project - are they looking for just the network infrastructure (just cabling and network hardware) or a complete solution (including supply of all new desktop computers and software)?
- Technical requirements - consider internet capacity, networking, data transfer speeds, storage and processor capacity, security etc.
- Hardware requirements - is a new server needed? What kind of computers are needed?
- Usage requirements - what will the new computers be used for (for example, graphic applications demand greater computing capacity than accounting programs)
- Existing systems - how will the new installation fit with the existing set-up?
- Ongoing support - are there existing service agreements for IT support?
This is not a comprehensive list - you may be able to come up with more ideas for this.
Q2: How could you find the information referred to in Question A above?
A2: Your client requirements and the request to carry out the work will come from management of the organisation. If there is an existing IT department you will talk to them about their projected needs and the existing systems that need to be considered.
You may also need to make your own enquires among staff about specific IT needs.
Seek out existing technical documentation for the organisation's IT infrastructure and IT usage policies.
Methods you use to gather information can include interviews, questionnaires, document research, etc.
Activity 2.2: Business requirements
Q: Consider following small case study for Companion Pensioners Insurance and answer the following question.
Case study: Companion Pensioners Insurance
Last year, the insurance companies Civic Care and Your Insurance merged to form the specialist pensioners insurance company, Companion Pensioners Insurance. The following is an extract from the CEO’s report to the section heads of Companion Pensioners Insurance:
Since the merging of our two companies we have experienced great difficulties in integrating business practices and procedures. This is especially true in more remote branch offices.
The incorrect processing of customer requests has caused a backlog of unprocessed paper work, creating increased customer dissatisfaction. It is taking well over three weeks for requests to return to our customers, when it should be less than two.
We are considering using the existing corporate IT infrastructure to implement a centralised database of policies and procedures, accessed from the corporate Intranet. The job of maintaining policies and procedures will be handed to our Human Resources department.
Some of the business requirements that were identified as relevant to the selection of new technology included:
- Compatibility with existing operating systems and networking software
- Interoperability with existing corporate intranet
- Maintainable by staff with basic computer literacy skills (HR staff and branches)
- Centralised database accessed from multiple sites.
A series of product criteria tests were devised. The following is a list of tests that failed in the inspection of the new corporate intranet system:
- After logging on, users could not access their details from the online personnel system displayed on the web page.
- Ferndale branch staff could not access the procedures menu, select the list facility, or display the list of procedures.
- Windows XP would not load the plug-in for intranet access.
A: The business requirements that were not met include:
- Interoperable with existing corporate intranet
- Centralised database accessed from multiple sites
- Compatible with existing operating systems and networking software
Activity 2.3: Sourcing alternative solutions
Accenture is a large multinational company that specialises in outsourcing projects for a wide variety of industries. Go to their website and have a look at some of their outsourcing services. Read the description of their outsourcing project for the Sarah Lee company. (Got to: http://www.accenture.com.au/, then select 'Services', then 'By subject', 'Outsourcing', 'Application outsourcing', then look for the Sara Lee project).
Q: What strategy did Sarah Lee use to decide on their final "e-procurement" supplier?
A: Sara-Lee ran a double trial of two potential systems before deciding on the system that most closely matched their needs and delivered extra benefits in getting cheaper access to suppliers.
One key point of this activity is that when preparing a feasibility study, it is often worth carrying out extensive research on each alternative before deciding on the best solution.
Task 3: Examine alternative solutions against constraints
Activity 3.1: Perform a cost/benefit analysis
Suppose we had a proposed project with a $7,000 development cost. The operating costs of the new system are $1500 per annum and the operating costs of the old system are $5000 per annum.
Using an Excel spreadsheet, calculate the payback period, the NPV and the ROI over a five year period, assuming an interest rate of 5%.
Q: Based on your results, is the proposed system economically feasible? Should the project go ahead?
A:
Investment = $7000
Net benefit p.a.: $5000 - $1500 = $3500
Table: Present and Cumulative values
Payback period = No of years for development cost = cumulative value of savings
2 years = $6,507.94
portion of 3rd year = (7000—6507.94)/3023.43 = 0.16
Payback period = 2.16 years
NPV = cumulative savings—development cost
NPV = $8,153.17
ROI = 116.47% over 5 years
ROI = 23.29% per annum
In this case the project will probably go ahead. Because, the payback period is just over 2 years, the NPV is $8153.17 and the ROI is 23.29% per annum.
Task 4: Produce a feasibility report
Activity 4.1: Develop a recommendation
Develop a recommendation for the following small case study:An organisation is trying to decide whether they should use Windows 2000 Professional or Windows XP as a desktop operating system. The business currently uses Windows 95 running on two Pentium 3 machines. The applications used include Microsoft Office 95 and MYOB version 7. There are two staff members who use the machines on a regular basis. Neither is familiar with either of the two options.
Q: What issues will you need to consider?A: This type of recommendation should cover issues such as:
- hardware resources required and available
- current environment
- compatibility with current applications
- new features that may be useful
- costs of upgrading
- training requirements
- future directions
- any benefits from upgrading.
Task 5: Present a feasibility report for sign-off
Activity 5.1: Sign-off and quality management
Where do sign-off procedures fit in with your organisation’s quality management policies?By this stage of your learning you will have discovered that some organisations use the ISO 9000 family of standards as a basis to certify the quality standards of their processes, other organisations prefer alternative measures, such as Six Sigma.
Q: Using a web search engine, research the fundamentals of ISO 9000, and find where sign-off procedures for documents fits into the system? Write a brief report on your findings (about 250 words).
A: The answers are vary. Information on ISO 9000 can be found at many sites Information may include the following points:If your organisation has quality certification, ISO 9000 sets out the requirements for your quality management system. ISO 9000 is not a standard for ensuring a product or service is of quality; rather, it verifies the quality of the process, and how it will be managed and reviewed. So ISO 900 doesn’t guarantee the quality of the technical documents, it lays out the rules for the process for sign-off
Hence, ISO 9000 is directly related to your organisation’s procedures for sign-off, and those procedures may vary from one organisation to another.There are four types, or levels, of documentation you will need to manage to achieve ISO 9000 standards for sign-off. These four levels form a hierarchy. The more detailed the document, the further down it belongs in the documentation hierarchy:
Table: The ISO 9000 documentation hierarchyFourth-level documentation includes all the records and forms which are generated by the working system.
ISO 9000 document generation and control
Under ISO 9000, every department issuing documents is free to designate its own procedures and channels for processing documents, including sign-off. This is a matter for your organisation to manage. Your management defines what your distribution network is, and who has authority for sign-off and release of procedures.
- Authority—Define who has the authority to sign off on documentation changes?
- Obsolete Documents—Describe what you do to these (shred, archive, etc).
- Distributions—Who gets the documents?
- Identification and revision—How do you identify documents? How do you track their revisions?
- Appendices and forms—Do you include appendices containing extra reference materials pertaining to each document for sign-off?
Capacity: Ability of equipment or work groups to handle the volume of work.
CASE tool: CASE (Computer Aided Software Engineering) tools are software packages that help to automate software development.
Constraint: A factor, such as cost, that restricts the range of solutions.
Cost/Benefit Analysis: A systematic quantitative and qualitative comparison of the relative advantages and disadvantages of alternatives.
Data dictionary: A data dictionary is a centralised system for defining and storing information about the data and the processes that transform the data in some way.
Levelling: Breaking down a process in a data flow diagram into lower level processes, each with their own data flow diagram
Platform: The type of computer hardware and / or operating system. For example, Wintel; a platform combining Intel x86 compatible hardware and Windows operating system, Lintel; a platform combining Intel x86 compatible hardware and Linux operating system.
Response time: The amount of time taken to get a response from the computer to a request from the user. For example, how long it takes for the results of a query to appear on the screen after you have clicked the run option.
Standard operating environment (SOE): The standard equipment, both hardware and software, that a business uses. This may be a decision to use a specific combination of products, or all products from one supplier or vendor.
SWOT analysis: Strengths, Weaknesses, Opportunities and Threats Analysis – this is the process of determining where an organisation is currently positioned.
Volumes of data: The amount of data being processed by a system. For example, the number of transactions processed in a day, week etc.
Version Control: Process for organising and documenting successive changes to a document or system.
Evaluation matrix: Table created to compare several options with regards to specific functions.
Network: Equipment and software needed to link computers in order to share data.
Server: Computer that is dedicated to handling communication and/or storage needs of the other equipment in the network.
Stakeholder: A person or organisation that has a legitimate interest in a project or entity.
Feasibility Study: The process of examining a number of solutions to a business problem, and reporting on which solution, if any, is worthwhile.
Net Present Value (NPV): Using a given discount rate, the cost of the initial investment is subtracted from the present value of expected future cash flows to give the net present value.
Payback period: The period of time it takes before the cost of your investment is recouped.
Return on Investment (ROI): The return for an investment expressed as a percentage.
Risk Analysis: A process assessing the risks associated with development of a system