SAD-Steps In Feasibility Analysis

Feasibility analysis involves eight steps:

1.Form a project team and appoint project leader.
2.prepare system flowcharts
3.Enumerate potential candidate systems.
4.describe and identify characteristics of candidate system.
5.Determine and evaluate performance and cost effectiveness of each candidate system.
6.Weight system performance and cost data.
7.Select the best candidate system.
8.Prepare and report final project directive to management

Form a project team and appoint a project leader

The first step involves forming a project team. The team consists of analysts and user staff. In many cases, an outside consultant and an information specialist join the team until the job is completed.

Projects are planned to occupy a special time, ranging from several weeks to months. The senior systems analyst is generally appointed as project leader. The appointment is temporary, lasting as long as the project. Regular meetings take place to keep up the momentum and accomplish the mission – selection of the best candidate system. A record is kept of the progress made in each meeting.

Prepare system flowcharts

The next step in feasibility study is to prepare generalized system flowcharts for the system. Information oriented charts and data flow diagrams prepared in the initial investigation are reviewed at this time. The chart brings up the importance of inputs; outputs and data flow among key points in the existing system.

Enumerate potential candidate systems.

This step identifies the candidate systems that are capable of producing the outputs included in the generalized flowcharts. This requires a transformation from logical to physical system models. Another aspect of this step is consideration of the hardware that can handle the total system requirements

Describe and identify characteristics of candidate system.

In this step, the analysis is mainly based on what each candidate system can and cannot do. For determining this, technical knowledge and expertise in the hardware/software area are critical.

Determine and evaluate performance and cost effectiveness of each candidate system.

Here the analyst has to determine and evaluate the performance and cost of the candidate system. Evaluation for both design and implementation is performed here. It includes user training, updating the physical facilities and documenting etc.

Weight system performance and cost data

According to the performance and cost of the candidate system, some weight is given to each alternative of the system. Then the candidate system with the highest total score is selected.

The procedure for weighting candidate system is
1.Assign a weighting factor to each evaluation criterion based on the criterion’s effect on the success of the system.
2. Assign a quantitative rating to each criterion’s qualitative rating.
3.multiply the weight assigned to each category by the relative rating to determine the score.
4.Sum the score column for each candidate system.

Select the best candidate system.

The system with the highest total score is judged as the best system. This assumes the weighting factors are fair and the rating of each evaluation criterion is accurate.
Feasibility report
 After feasibility study, a document called feasibility report is prepared and is directed to the management. The report is a formal document for management use; it should be brief, and sufficiently nontechnical to be understandable.

The report contains the following sections.

1.cover letter-It represents the report and briefly indicates to management the nature, general findings and recommendations to be considered.

2.Table of contents- specifies the location of the various parts of the reports.

3.Overview- is a narrative explanation of the purpose and scope of the project, the reason for undertaking the feasibility study and the departments involved or affected by the candidate system.

4.Detailed findings- Outline the methods used in the present system. The System’s effectiveness and efficiency as well as operating costs are emphasized. This section also provides a description of the objectives and general procedures of the candidate system.

5.Economic justification- details point by point cost comparisons and preliminary cost estimates for the development and operation of the candidate system.

6.Recommendations and conclusions- suggest to management the most beneficial and cost effective system. They are written only as a recommendation, not a command. Following the recommendations, any conclusions from the study may be included.

7.Appendixes -document all memos and data compiled during the investigation. They are placed at the end of the report for reference.

Oral presentation

The project leader or analyst is expected to give an oral presentation to the end user.

The most critical requirements for the analyst who gives the oral presentation are 
1.communication skills and knowledge about the candidate system that can be translated into language understandable to the user,
2.The ability to answer questions, clarifies issues, maintain credibility, and pick up on any new ideas or suggestions.
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