The Firms Computer System

Published Date: 02 Nov 2017

If developed, the order entry system is to be run on a computer that already has a communications processing package. However, the proposed system would require an upgraded version of this package, available at a cost of approximately $150 per month.($1800/YEAR)

Personnel to develop the application software for the proposed project is to be drawn from the current staff. It is estimated that eight persons, working for a ten-month period, would be needed to develop the system. The average salary for the system developers working on the proposed project is currently $26,000 per year (the benefit package for these employees costs the firm an additional 25% per person per year).

The firm’s use of information systems at the management level has made it a leader in the industry. The information systems staffs, has received favorable reviews from the management of the organization. In addition, representatives from other business in the industry are visited the firm to examine some of its management systems.

The order entry operation has been performed manually for many years, with order writers preparing handwritten sales forms. When completed, the order forms are reviewed for errors, extended, and totaled.

Despite the efforts of the staff, a 4 percent error rate is common. The errors that occur are usually either incorrect order quantities or incorrect prices. Some items requested by customers are never recorded, although this happens only rarely. The customers usually notify the firm of the oversight and it is immediately rectified.

The order writers are proud of the job they do and insist that occasional errors are unavoidable. Their view is that no problem exists and therefore management need not be concerned. The order writers are not aware that an automated system has been proposed.

The firm’s management is expecting a combination of more aggressive marketing plans and a line of new products to result is significant increases in sales and orders. The present order writing staff would have to be expanded by approximately 30 percent to meet anticipated order entry demands. However, if an automated system is developed, the current staff of eight could handle the increased workload; no new order writters would have to be hired. (Note: each of these staff members costs the firm an average of $26,000 per year for salaries and benefits.)

Analyze and discuss the feasibility of this proposal, using on the information provided. Decide whether the system should be pursued.

1- The feasibility types of this proposal can be divided into three categories; they are operational, technical and economic feasibility. Operational feasibility can be determined as measure of information system performance that will work in food service equipment firm. Currently, the order entry operation has been performed manually for many years, with order writers preparing handwritten sales forms. When completed, the order forms are reviewed for errors, extended, and totaled. This means that current situation is not practical to the firm. Depending on the situation, it might take some effort to make transition of manual operation to the computerize system.

2- Technical feasibility is the measure of the practically of a specific technical information system solution and the availability of technical resources exist in firm. For the food service equipment firm, the firm’s computer system currently has sufficiently memory and processing availability to handle the new application, although ten special terminals, costing approximately $2700 each, would be needed to support the new order entry process. But this is not a problem from technical site because vendor can deliver enough terminals within reasonable time. Technical expertise also consists of firm’s staff to develop the application software for the proposed project.

3- Economic feasibility is the measure of the cost effectiveness of an information system solution at food service equipment firm. Although the cost of developing and operating the system is quite high which are the average developer salary that working on the project is $26,000 per year but the system proposed will contribute benefit when error on handwritten can be reduced, performance increase, no new order writers would have to be hired and if an automated system is developed, the current staff of eight could handle the increased workload. In addition, the firm’s management is expecting a combination of more aggressive marketing plans and a line of new products to result significant increases in sales and orders.

Ideally, the system proposed should be pursued when looking at the benefit of the system. An online order entry system is one-time cost and ongoing cost just for upgraded version of this package approximately $150 per month. In this situation, the annual operating costs are very small fraction of the development costs.

Assume that the final results of the feasibility study indicate that the proposed system is both technically and economically feasible. However, the order writers are not supportive of the proposal and have indicated that they would avoid or resist using the system if it were developed and implemented. Using the information provided, decide what recommendation would be for the feasibility of the system. Explain your reasoning.

From the current situation, the present order writing staff would have to be expanded by approximately 30 percent to meet anticipated order entry demands. However, if an automated system is developed, the current staff of eight could handle the increased workload; no new order writers would have to be hired. So, based on the criteria previously discussed from feasibility study, system development will continue with recommendation of changes order writers job scope.

The organization need to persuade and train the order writers to use the order entry system. While training them, organization can explain about the effectiveness of using it, can save the time to review and check the error might happened after preparing order manually and tell them how the system will reduce the error will occur if do it with handwritten. Hence, the reliability of the system will prove to the staff that proposed system could increase work performance and at same time it can decrease their workload.

Organization also can give bonuses as a reward to them. Reward under this circumstance likely a stronger motivator to the employee. This reward will show the appreciation for their involvement in the company.

Send the order writing staf for team building program this will give impact to motivate them. Within this event, employee will keep feeling motivated, engaged and encouraged them on how important this system transformation from current work flow to new workflow.

The firm also can offer to them the career promotions if this new system successfully implemented.

What other specific information would you need to do a more extensive feasibility study for this proposal? For each item of information you identify, indicate who should provide the information?

The specific information that would be needed to do more extensive feasibility study for this proposal are:

1 - Organizational feasibility – The other specific information for feasibility study is in organization. System proposed must consistent with the organization’s strategic objectives. If they are align, so the funds is used for appropriate purposes.

2 - Available Budget - Cost estimation and budget commitment from organization will be required to discuss.

3 – Schedule feasibility - A project will fail if it takes too long to be completed before it is useful. Typically this means estimating how long the system will take to develop, and if it can be completed in a given time period using some methods like payback period. Schedule feasibility is a measure of how reasonable the project timetable is.