Systems Analysis and Design ITC 240
TUTORIAL 5
Essay Questions
1.
2.
Briefly identify and define the six major categories of feasibility.
Answer:
 Economic Feasibility: At this category we try to identify the financial profits and costs that
are associated with the project. This category is also called as cost-benefit analysis which is
followed after each phase of the SDL Cycle in order to confirm for the continuation,
redirection or quitting of the project.

Technical Feasibility: Here the team checks if the organization is able to develop a new
system. In this category the understanding of the team is assessed for the project’s target
hardware, software, system size, operating environment and etc. Moreover, the various
project’s risk factors are also considered in this category of feasibility.

Operational Feasibility: The process of assessing the degree to which a proposed system
solves business problems or takes advantage of business opportunities.

Schedule Feasibility: Examines the likelihood of meeting all feasible time frames and
completion dates.

Legal & Contractual Feasibility: The process of assessing potential legal and contractual
ramifications due to the construction of a system.

Political Feasibility: focus on how stakeholders within the organization view the proposed
system.
Briefly identify three commonly used economic cost-benefit analysis techniques.



Net present value: The present value of the project is calculated using a discount rate based
on the company's cost. Taking both financial revenues and outlays into account.
Return on Investment: is the ratio of a project's net cash receipts divided by its cash outlays,
where compromises in analysis can be made by comparing representative ratios among
projects for investment.
Break even analysis: determines the period of time it will take for the project's cumulative
cash flow to equalize the initial and ongoing investment.
Systems Analysis and Design ITC 240
3.
TUTORIAL 5
What is a Statement of Work and Baseline Project Plan? How are they different?
The Statement of Work (SoW) is the document that contains and describes every component of your
project. You'll keep track of the project's activities, deliverables, and schedule. It's a very extensive
document because it'll serve as the foundation for the project plan. It's one of the first documents you'll
make to set out the project's full landscape before you start planning and executing. Baseline Project
plan (BPP) is the starting point for your project plan. It’s a document that serves as a guide for the
development team.
4.
Describe the differences between tangible and intangible benefits and costs, and between one-time and
recurring benefits and costs.
Tangible benefits: A benefit derived from the creation of an information system that can be measured
in dollars and with certainty.
Intangible benefit: A benefit derived from the creation of an information system that cannot be easily
measured in dollars or with certainty.
Tangible cost: A cost associated with an information system that can be measured in dollars and with
certainty
Intangible cost: A cost associated with an information system that cannot be easily measured in terms
of dollars or with certainty.
One-time benefit and cost: A cost associated with project startup and development, or system startup.
Recurring benefits and costs: A cost resulting from the ongoing evolution and use of a system. For
instance, For instance, Application software maintenance, Incremental data storage expenses,
Matching Questions
Systems Analysis and Design ITC 240
TUTORIAL 5
Match each of the following terms with its definition.
a. economic feasibility: 1
b. legal and contractual feasibility: 5
c. operational feasibility: 4
d. political feasibility: 3
e. schedule feasibility: 2
f. technical feasibility: 6
1.
A process of identifying the financial benefits and costs associated with a development project.
economic feasibility
2.
The process of assessing the degree to which the potential time frame and completion dates for all
major activities within a project meet organizational deadlines and constraints for affecting change.
schedule feasibility
3.
The process of evaluating how key stakeholders within the organization view the proposed system.
political feasibility
4.
The process of assessing the degree to which a proposed system solves business problems or takes
advantage of business opportunities.
operational feasibility
5.
The process of assessing potential legal and contractual ramifications due to the construction of a
system.
legal and contractual feasibility
6.
A process of assessing the development organization’s ability to construct a proposed system.
technical feasibility
Match each of the following terms with its definition.
a. intangible benefit: 6
b. intangible cost: 5
c. one-time cost: 4
d. recurring cost: 3
e. tangible benefit: 2
f. tangible cost: 6
1.
A cost associated with an information system that can be measured in dollars and with certainty.
Tangible Cost
2.
A benefit derived from the creation of an information system that can be measured in dollars and with
certainty.
Tangible Benefit
Systems Analysis and Design ITC 240
TUTORIAL 5
3.
A cost resulting from the ongoing evolution and use of a system.
Recurring Cost
4.
A cost associated with project startup and development, or system startup.
One-time Cost
5.
A cost associated with an information system that cannot be easily measured in terms of dollars or
with certainty.
Intangible Cost
6.
A benefit derived from the creation of an information system that cannot be easily measured in dollars
or with certainty.
Intangible Benefit
Match each of the following feasibility criteria with its purpose.
a. economic 6
b. legal and contractual 3
c. operational :1
d. political :4
e. schedule: 5
f. technical: 2
1.
To gain an understanding of the degree to which the proposed system will likely solve the business
problems or take advantage of the opportunities outlined in the systems service request or project
identification study.
operational
2.
To gain an understanding of the organization’s ability to construct the proposed system.
Technical
3.
To provide an understanding of any potential legal ramifications due to the construction of the system.
Legal and contractual
4.
To evaluate how key stakeholders within the organization view the proposed system.
political
5.
To provide an understanding of the likelihood that all potential time frames and completion date
schedules can be met, and that meeting these dates will be sufficient for dealing with the needs of the
organization.
schedule
6.
To identify the financial benefits and costs associated with the development project.
Economic