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MANAGEMENT INFORMATION SYSTEM and the SYSTEMS

ENGAGEMENT
SYSTEM is an organized set of procedures; or is a regularly interacting or
interdependent group of elements forming a unified whole.
TYPES of System:
a. OPEN Systems, also called probabilistic systems, are those which the output,
or results, cannot be determined precisely, but can only be guessed at.
b. CLOSED Systems is where result or output can be predicted with certainty.
The output of these systems can be predicted with relative ease and
accuracy by measuring the input or demands placed upon the system. For
this reason, closed systems are easier to manage than open systems.
BUSINESS SYSTEM is a collection of policies, procedures, methods, people,
machines, and other elements that interact and enable the organization to reach its
goals. It often includes marketing, personnel, production, finance, and distribution
elements.
KNOWLEDGE MANAGEMENT
- Spawned out of the need to unearth information and convert it into
knowledge and appropriate action.
- It is technology driven, using computers to help analyze data, pinpoint
trends, flag the unusual, and sort the important from the mundane. Finally, it
must result in getting critical data to decision makers.

SYSTEM FUNDAMENTALS
A Business System is usually composed of many parts or elements called
SUBSYSTEMS. A Subsystem performs a specified task that is compatible with the
goals of the larger system of which it is a part.
The Environment is the people, facilities, rules, policies, and regulations that
surround a system.
A Boundary is the perimeter, or line of demarcation, between a system and
the environment. It distinguishes between the elements that make up the system
and the outside world with which it interacts.
All systems gather or receive some kind of information or data that is
subsequently processed, generating results or output. Inputs are those items that
enter the boundaries of the system from the environment and are manipulated by
the system.
Systems exist to process data, raw material, money, or other inputs.
Processing is the conversion of inputs, or raw materials, to outputs, or finished
results. It is processing that enables an organization to move toward its goals.
Outputs are the product of processing. They are the end result of receiving
data or other input and processing it.

THE SYSTEMS ANALYST


GROWTH OF THE INFORMATION INDUSTRY
An industry has evolved to process the vast amount of data and information
handled by government, industry, and business. The evolution of the information
industry has been described as moving thru three phases.
In the Pre-industrial Age, information was processed using typewriters,
adding machines, and handwritten materials. Thus, information handling was slow,
inefficient, and often inaccurate. With the Advent of Computers, word processing,
and copy machines, information processing moved into the Industrial Age. While
mechanized, records were still sent through the mails, handed from one person to
another, and physically filed in cabinets.
Modern office automation, the personal computer, and breakthroughs in data
communications created the Information Age. In this era, information is routed
from terminal to terminal and office to office over communication lines, and can be
sorted, stored, and retrieved at many different locations. The basic way we look at,
revise, and transmit information is different, both in the speed and in the technology
with which it is handled.
THE STUDY OF SYSTEMS ANALYSIS
Systems Analysis is the investigation of business or information systems. It
is the scientific study of the systems process, including investigation of inputs and
outputs, in order to find better, more economical, and more efficient means of
processing.
Systems Analysis has developed into an important tool that organizations use
to improve their productivity. There are many reasons why an organization spends
time and money and dedicates resources to the analysis of its systems.
ADVANTAGES OF SYSTEMS ANALYSIS:
1. Greater efficiency.
2. Maximizing profits.
3. Resources are used to the best
advantage.
4. Reduction of human effort.

5. Faster turnaround.
6. Reducing or eliminating errors in
data and information.
7. Consistent
operations
and
procedures.

LIMITATIONS OF SYSTEMS ANALYSIS:


1. Some business problems are beyond the scope of systems analysis techniques.
2. Systems analysis efforts cost time and money.
3. The human element can cause complications.
4. Effort is required to sell a system.
SYSTEMS ANALYSTS provide a key human resource in the planning,
improvement, and operation of business organizations; also called Efficiency
Experts..
THE DUTIES OF THE SYSTEMS ANALYST
The specific duties of the individuals in the systems department depend upon
the size and type of organization involved. Analysts are often concerned with the
following areas:
1. Project management.
2. Forecasting and simulation.

3. Sales and marketing of goods and services.


4. Planning the orderly flow of information throughout an entire business
enterprise.
5. Modifying and redesigning existing business systems.
6. Systems implementation.
7. Computer programming and utilization.
8. Database design.
9. Forms and design management.
10.Establishing system policies and procedures.
11.Employment and training of organization personnel.
12.Work measurement.
13.Work simplification.
14.Office layout.
15.Selection and specification of office and information-processing equipment and
supplies.
16.Planning and designing internal and external communications.

Typical Organizational Structure illustrated as serviced by the Systems


Department:
President

Informatio
n
Systems
VP
Systems
Departme
nt
Manager

Productio
n

Personnel
VP

Finance
VP

Data
Processin
g
Departme
nt

The Systems Department Organization:


Systems
Departmen
t
Manager
Systems
Programm
er

Database
Designers

Systems
Analysts

Forms &
I/O
Designers

Hardware
Acquisition
Specialist

THE MAJOR INFORMATION SYSTEMS


INFORMATION SYSTEM is the network of all methods used in communicating
information within the organization. It is a collection of procedures, programs,
equipment, and methods that process data and make it available to management
for decision making.
Information is needed in all levels of management, whether in:
STRATEGIC Level
- composed of the Vice-Presidents and the CEO
responsible for strategic planning using unstructured decisions.
TACTICAL Level - composed of the middle managers such as directors in each
specific task or field responsible for tactical planning using semi-structured
decisions.
OPERATIONAL Level
- composed of the lower management such as
managers of departments responsible for operational planning using structure
decisions.
THE MAJOR INFORMATION SYSTEMS:

FINANCIAL INFORMATION SYSTEM is used in showing and communicating


the flow of monetary information.
PERSONNEL INFORMATION SYSTEM shows the flow of information about the
personnel working in an organization.
LOGISTICS INFORMATION SYSTEM shows information about the physical flow
of goods within an organization.
MANAGEMENT INFORMATION SYSTEM is a set of data gathering, analyzing
and reporting functions designed to provide management with the information it
needs to carry out its functions.
ACCOUNTING INFORMATION SYSTEM is an orderly arrangement of
procedures, personnel, written records, equipment and devices used for the
systematic/organized collection, processing and reporting of financial and other
information essential to the official and effective conduct and evaluation of
activities/transactions.

OBJECTIVES:
a. Provide means by which interested parties may be given information on the
financial position and results of operations of an organization.
b. Facilitate management planning, control, ands decision making.
c. Comply with various laws and government requirements.
d. Protect the organization and safeguard its assets.
BASIC ELEMENTS:
a. Set of interrelated activities.
b. Written records and reports.
c. Equipment and devices used.

d. Personnel directly involved.


ESSENTIAL COMPONENTS:
Business Papers and Forms
Business Machines
Journals and Ledgers
Chart of Accounts

Flowchart
Organizational Charts
Financial Reports
Internal Control

FLOWCHART is a pictorial presentation of flow of work and/or documents through a


department or an entire organization.
a. SYSTEMS Flowchart shows a logical diagram of the flow of data through all parts
of the data processing system; identifies which functions are manual,
mechanical, and computerized.
b. DOCUMENT Flowchart traces the flow of documents and reports for a particular
function or activity through the system from origin to destination.
c. PROGRAM Flowchart shows the different operation and decisions required in a
specific program.
ORGANIZATIONAL CHARTS shows the lines of authority, responsibility, control,
and functions in a business organization.
TYPES of Management Information System (MIS):

TRANSACTION PROCESSING System (TPS)


for
lower
managers
- Follows the input-output system. The inputs are transaction data such as bills,
paychecks, inventory analysis, and so on.
- Normally for lower managers use.
- Produces detailed reports.
- There is one (1) TPS for each department.
- Also a basis for MIS and DSS.

MANAGEMENT INFORMATION System (MIS)


- for middle managers
- Input and output system.
- Normally used by middle managers.
- Draws input from all departments.
- Produces several kinds of reports
- summary reports, exception reports,
periodic reports, on-demand reports.

DECISION SUPPORT System (DSS)


for
top
management
- Input and output system.
- Mainly for top managers. Produces analytic models the key attribute of a
DSS is that it uses models. A model is a mathematical representation of a real
system. The models use a DSS database, which draws on the TPS and MIS
filed, as well as external data such as stock reports, government reports,
national and international news. This model allows a manager to do a
simulation-play a what if game- to reach discussions

COMPONENTS of a DSS:
Hardware
Software
Data resources
model resources
people resources
EXAMPLES of DSS Applications:
Airline DSS
Real Estate DSS
Geographic DSS

EXECUTIVE INFORMATION System/EXECUTIVE SUPPORT System


for
top management
- Is an easy-to-use DSS made especially for top managers. It specifically
supports strategic decision making.
- Draws from data not only from systems internal to the organization but also
from those outside.
- An EIS might allow senior executives to call up predefines reports from their
PCs, whether desktops or laptops. They might, for instance, call up sales
figures in many forms-by region, by week, by fiscal year, by projected
increases.
- EIS includes capabilities for analyzing data and doing what if scenarios.
- EISs also have the capability to browse through information on all aspects of
the organization and then zero-in on areas the manger believes would require
attention.

EXPERT/KNOWLEDGE Systems - for all levels, including non management


- Is a set of interactive computer programs that helps users solve problems
that would otherwise require the assistance of a human expert.
- Simulated the reasoning process of experts in certain well-defined areas. That
is, professionals, called knowledge engineers, interview the experts and
determine the rules and knowledge that must go into the systems.
- Programs incorporate not only surface knowledge (textbook knowledge) but
also deep knowledge (tricks of the trade)
EXAMPLES of Expert Systems:
MYCIN
- helps diagnose infectious diseases
PROSPECTOR - assess geological data to locate mineral deposits
DENDRAL
- identifies chemical compounds
REBES
- helps investigates crime scenes
CARES
- helps social workers assess families for risk of child abuse
CLUES
- evaluates home-mortgage-loan applications
MUCKRAKER
- assists journalists with investigative reporting
CRUSH
- takes a body of expert advice and combines it with worksheets
reflecting a users business situation to come up with a customized strategy to
beat out competitors.

OFFICE AUTOMATION Systems - for all levels, including non management


- Are those that combine various technologies to reduce the manual labor
required in operating an efficient office environment.

These technologies include voice mail, e-mail, scheduling software, desktop


publishing, word processing, fax and so on.
OAS are used throughout all levels of an organization.
The backbone of an OAS is a network-perhaps, a LAN, an internet over a LAN,
or an extranet.

EDP SYSTEMS
DATA PROCESSING refers to operations needed to collect and transform data into
useful information.
DATA refers to facts that pertain to, or describe some situation or condition.
PROCESSING refers to handling or manipulation of data.
BASIC DATA PROCESSING OPERATIONS:
1. Classifying
2. Sorting
3. Calculating
4. Summarizing
5. Recording
6. Storing
7. Communicating
DATA PROCESSING METHODS:
MANUAL Data Processing
- performed by hands, utilizing pen or pencil.
MECHANICAL Data Processing
- mechanical equipment such as office and
bookkeeping machines is utilized to increase speed and accuracy.
ELECTRONIC Data Processing (EDP) - data are converted into machine readable
form and then processed through electronic impulses. Processing takes place
with computer at incredibly high speed, and which minimum human
intervention.
Computer Competency is the fundamental understanding of the technology,
operation, applications and issues about computers.
-

A computer competent individual:


Feels comfortable using and operating a computer;
Is able to use software;
Is able to input data to, and generate output from the computer;
Knows how to use the hardware; and

- Is an intelligent consumer of products and services related to computers.


COMPUTER is an electronic device that can interpret and execute programmed
instructions or commands for input computations, logic operations and output.
COMPUTER SYSTEM refers to collectively to all interconnected hardware.
Hardware are physical devices that comprise a computer system.
Software are programs, routines and procedures used to direct the functions of
a computer system.
Systems Software helps the operator use the machine; generates
interaction between the computer, its peripherals, other programs, and sets of
data to be used, and the operator himself; controls the input/output functions of
the computer; and, translates programming language.
Applications Software are programs that helps the operator use the
computer to do specified tasks or to solve particular processing job.

BASIC COMPONENTS of a Computer System:


1. INPUT
Input Devices prepare and insert data into the computer after translating data
into computer language.
2. PROCESSING
The CPU performs the processing functions which include the storage of
information, arithmetic, and logic operations, and control.
3. OUTPUT
Output Devices translate the processed data back into language of written words
out of the computer to users.
4. STORAGE
CATEGORIES of Computer System:
- Are categorized according to size or computing capacity.
a. MICROCOMPUTERS are small computers; Personal Computers
Pocket PCs
Desktop
Laptops
Tower
b. MINICOMPUTERS are smaller than mainframe computers, but powerful enough to
serve the users purpose.
c. MAINFRAME Computers
d. SUPERCOMPUTERS
CAPABILITIES of Computer System:
1. SPEED
- ability to provide new time dimensions.
2. LOGICAL OPERATIONS - can manipulate, in logical ways, mathematical
expressions and other symbols.
3. MEMORY
- almost unlimited amount of data can be stored.
4. ACCURACY
- the ability to control error.
5. RELIABILITY
- can perform repetitive tasks without complaining.
Computer LIMITATIONS:
1. Can only handle information it was programmed to handle.

2. Instructions must be given in a detailed manner.


3. Cannot be perfect.

COMPUTER INFORMATION SYSTEMS


EXECUTIVE INFORMATION SYSTEM (EIS) - designed specifically
decision making, primarily the tactical and strategic levels.

to

support

DECISION SUPPORT SYSTEM (DSS)


- focused to support management
decision-making involving semi-structured and unstructured problems.
EXPERT SYSTEM
- interactive knowledge-based system and
generally helps users make complex decisions.
ASSISTANT SYSTEM
straightforward decisions.

helps

users

make

relatively

BASIC APPROACHES to Satisfy Companys Needs:


IN-HOUSE Development
PROPIETARY SOFTWARE PACKAGE
FUNDAMENTAL APPROACHES in DEVELOPING IN-HOUSE INFORMATION SYSTEM:
1. PROTOTYPING
- creating a model.
2. PRE-SPECIFICATION- users determine information processing needs, then
commit these specifications through system implementation.
The SYSTEM LIFE CYCLE:
BIRTH
idea
DEVELOPMENT
- idea becomes a reality
PRODUCTION
- system becomes operational
DEATH
- system is discarded

INFORMATION SYSTEMS ANALYSIS AND DESIGN

SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) is also called Application


Development Cycle, Systems Development Cycle, or Structured Development Life
Cycle. The phases are:

a. Preliminary Investigation - management determines there is a problem with


the existing information system; systems analyst does initial study to determine
preliminary costs and constraints.
b. Systems Analysis
- analyst investigates the problems in the existing
system and the requirements for the new system.
c. Systems Design
- analyst creates detailed diagrams, charts, models,
and prototypes of components of the proposed new system.
d. Systems Development
- the programmers, monitored by the analyst, build
the system. Testers test the systems for quality.
e. Systems Implementation - data, people, and procedures are converted from
the old system to the new; final documentation is compiled; users are trained;
the new system is out into operation.
f. Systems Maintenance
- the information system must be maintained,
repaired, and enhanced by analysts and maintenance programmers until it is
suspected to be obsolete. Then the SLDC begins again for a new system.

PHASES IN SYSTEMS DEVELOPMENT


PHASE I PRELIMINARY INVESTIGATION
- Often called a feasibility study.
- A systems analyst conducts a preliminary analysis, determining the
organizations objectives and the nature and scope of the problems. The analyst
then proposes some possible solutions, comparing costs and benefits. Finally,
he/she submits a preliminary plan to top management.
- Systems analyst may use Joint Application Development (JAD) where systems
owners, users, analysts, and designers are brought together in a highly
organized intensive workshops to jointly define and design systems (focus group
discussions). This is done to replace months of traditional interviews and followup meetings.
The Usual Steps in Preliminary Investigation are:
1. Conduct preliminary study
Determine the organizations objectives.
Determine the nature and scope of the problem/s.
2. Propose alternative solutions
Leave the system as is.
Improve the system.
Develop a new system.
3. Describe costs and benefits
4. Submit a preliminary plan
PHASE II SYSTEMS ANALYSIS
- Describes WHAT a system should do to meet the needs of users.
- The process of learning how the current system functions, determining needs of
users, and developing the logical requirements of a proposed system.
- Its objective is to gather data, analyze the data, and write report. In general, it
involves a detailed study of
The information needs of the organization and all users.

The activities, resources, and products of any present information systems.


The information systems capabilities required to meet the established
information needs and the user needs.
The Usual Steps in Systems Analysis are:
1. Gather data thru
Written documents.
Interviews (structured/unstructured); JAD may be used.
Questionnaires.
Observation.
Sampling.
2. Analyze the data
Use modeling tools to present graphical (pictorial) representations of the
system such as:
a. CASE (Computer-Aided Software Engineering) Tools
b. Data Flow Diagram
- also called process model
c. Systems Flowchart
- or Systems Flow Diagram shows the major input,
output and processes of a system
d. Connectivity Diagrams used to map network connections of people,
data, and activities of various locations
e. Grid Chart
- shows the relationship of data and input
documents and data on output documents
f. Decision Tables - shows the decision rules that apply when certain
conditions occur and what actions to take.
g. Object-Oriented Analysis (OOA) data and processes are combined, or
encapsulated, into things called objects building blocks made of
software routines. The only way to create, delete, change, or use the data
in an object (called properties) is through one of its encapsulated
processes called (methods). The systems and software developments
strategy is changed to focus on the assembly of the system from a
library of reusable objects.
h. Write a report.
PHASE III SYSTEMS DESIGN
- the process of developing specifications.
- Is the HOW to accomplish the information system objective.
Three Major Activities of Systems Design:
USER INTERFACE Design - answering How the users will interact with the
system to meet their needs?
DATA Design
- answering How the data will be organized?
PROCESS Design - is the formulation of processing design
The Usual Steps in Systems Design are:
1. Do a preliminary design
Use of CASE tools such as Excelerator, Iconix, System Architect, and
Powerbuilder
Front-end CASE tools (or upper-CASE tools) are used in preliminary
investigation, systems analysis, and systems design; while, back-end CASE

tools (or lower-CASE tools) are used in systems development and systems
maintenance to help in coding and testing, for instance.
2. Do a detail design
Output requirements
Input requirements
Storage requirements
Processing and networking requirements
Systems controls and backup
3. Write a report
PHASE IV PROGRAMMING/SYSTEMS DEVELOPMENT
-

Programs are written to create the software necessary to make information


system operational.
Consists of Acquiring the Software, and Hardware; and then Testing the System.
1. Acquire the Software
make or buy; if make, hire own staff or hire outside programmers
2. Acquire the Hardware
3. Test the System
Unit Testing
- individual parts of the program are tested using
test (made-up or simple) data.
System Testing - the parts are linked together, and test data is used to
see if the parts work together.

Activities Involved:
SYSTEM SPECIFICATION REVIEW
PROGRAM IDENTIFICATION AND DESCRIPTION
PROGRAM CODING
TESTING
DOCUMENTATION
PHASE V CONVERSION AND IMPLEMENTATION/SYSTEM IMPLEMENTATION
- It consists of converting the hardware, software, and files to the new system,
compiling final documentation, and training the users.
The Usual Steps are:
1. Convert to the new system
Convert hardware, software and files.
COMMON APPROACHES to Systems Conversion:
PARALLEL Conversion - operates the old and new systems simultaneously
DIRECT Conversion
- immediate conversion to the new system
PHASED Conversion
- information system is implemented one module at
a time, either by Parallel or Direct conversion
PILOT Conversion
- new system is implemented by Parallel, Direct or
Phased conversion in only one of the several areas for which it is targeted

PROTOTYPE Conversion
developing
and
putting
into
operation
successively more refined versions
2. Compile Final Documentation.
- An ongoing process during all phases of the SLDC. Examples include manuals
of operating procedures and sample data entry display screen forms, and
reports.
3. Train the users
PHASE VI POST IMPLEMENTATION/SYSTEMS MAINTENANCE
- Adjusts and improves the system through system audits and periodic
evaluations.
1. Post Implementation Review - critical examination of the system 3 to 6 months
after it has been implemented.
2. Systems Maintenance
- continuous throughout the life of the system.
AUDITING. An independent review of an organizations information system to see if
all records and systems are as they should be. An audit trail helps independent
auditors trace the record of a transaction from its output back through all
processing and storage to its source.
EVALUATION. It may be done by the head systems analyst or outside systems
analyst. Evaluation may also be done by user or client who is able to compare the
working so the system against some present criteria.

THE SYSTEMS ENGAGEMENT


PRINCIPLES of Systems Design:
1. Objectives should be accompanied by operating at the least possible cost.
2. Should be simple, yet workable.
3. Be tailored to organizational structure and policies.
4. Adequate controls.
5. Activities in the system should be arranged.
6. Should take human factors into consideration.
7. Be flexible enough to facilitate possible expansion or contraction.
8. Possibility of using mechanical equipment and devices should be considered.
9. Should provide for timely, effective and relevant reports.
10.Should facilitate audit trail.
PHASES of Systems Engagement:
1. GATHERING AND ANALYZING FACTS
- Obtain the necessary information that will enable the practitioner to define
the problem.
2. DESIGNING THE SYSTEM involves:

Determining the specific nature and extent of information;


Drafting the desired the reports, schedule and other statements;
Determining the best way or how data and other needed information for the
reports preparation will be collected, recorded and classified;
Preparing the chart of accounts with proper coding;
Designing the books of accounts;
Designing the required forms and other documents; and
Preparing flowcharts and other written procedures.

3. PREPARING AND PRESENTING THE SYSTEMS REPORT. Includes:


Transmittal letters
Organization charts
Proposed chart of accounts
Pro-forma financial statements
Books of accounts, subsidiary ledgers, and other auxiliary records
Systems and documents flowcharts
Sample forms
4. IMPLEMENTATION OR INSTALLATION OF RECOMMENDATION
5. FOLLOW-UP
6. DOCUMENTATION OF THE SYSTEM
- Refers to a detailed written description of the accounting system which is
generally in a form of Accounting System Manual.

ACCOUNTING SYSTEMS MANUAL


-

A collection of instructions set forth the basic systems and accounting


policies and procedures which must be followed within the business
organization.
Contains:
1. Organization of Accounting, Auditing, and Systems Departments;
2. Basic policies on systems and accounting;
3. Chart of Accounts and Codes;
4. Books of Accounts, including contents and sources of entries;
5. Statements and Reports;
6. Flowcharts; and
7. Sample or Specimen Forms

COMMUNICATIONS AND THE ORGANIZATION


Communications, both verbal and written, are vital elements in the
daily life of the business enterprise. Identifying and evaluating the activities
and communication paths that generate information is one of the basic jobs
of the systems analyst.
COMMUNICATION is the transmission of a message thru a medium such
as the spoken or written word, from a sender to receiver.

TYPES of Communication:
EXTERNAL communications take place between an organization or system
and those beyond its boundaries.
INTERNAL communications are letters, memos, and other correspondence
that originate and terminate within the same organization.
a. Horizontal communication includes the transfer of data and information
between the individuals at the same level on the organizational chart.
b. Vertical communication is the transfer of the information between
individuals on different levels of the organizational chart.
Organization of the Information Department
Data
Processing
Manager
Systems
Supervisor

Programmin
g Supervisor

Senior
Database
Analyst

Senior
Communicati
ons Analyst

Junior
Analyst

Junior
Analyst

Senior
Systems
Programmer

FORMAL ORGANIZATION

Operations
Supervisor

Senior
Applications
Programmer
Comput
er
STRUCTURE
Operato

Data
Entry
Operator

Organizations are composed of individuals who perform specific roles


coordinated to enable the company to achieve its goals. Virtually every
company has some type of formal organization structure. There is usually an
official plan that clearly shows the chain of command and the lines of
authority and responsibility. Organizations have formal sets of rules that
define the various functions and duties at each level of authority and
prescribe the relationships among the different roles.
Most business firms are structured according to one of the following
three types of formal organizations:
A. LINE ORGANIZATION
A classical line organization resembles a pyramid. At the top is the
manager-chairman of the board, president, chief - with the ultimate decisionmaking authority. Below the manager are various levels of subordinates.
On the level directly below the manager are the relatively few persons
who are next in authority and who have lesser or different responsibilities
and decision making functions. Below them are the other layers of the official

hierarchy, each involving a greater number of individuals with lesser


responsibility and authority than the one above.
Within this organization exist clear lines of authority, moving from the
top down. Each individual is responsible to someone in authority above
him/her. Conversely, each individual in authority has persons for whom he or
she is directly responsible. If individuals are not connected by lines, it is
assumed that no authority or responsibility exists between them.
The line organization is simple, clear structure, but it does contain
certain weaknesses. An individual needing advice must follow the lines of
authority shown in the organizational chart. In theory, he or she cannot
approach other organization members not related by direct line of authority,
since no official relationship has been established. However, in practice,
these rules are often bent.
Because of this weakness, the line organization is not widely used in
modern business or industry. The military is probably one of the few major
examples of this type of organization.
President

VicePresident
Marketing

VicePresident
Manufacturin

Manager

Manager

Manager

Manager

Supervisor

Supervisor

Supervisor

Supervisor

B. LINE AND STAFF ORGANIZATION


Line positions are indicated by solid lines; staff positions by dotted
lines. This type of structure includes the usual manager and subordinate
positions, representing the formal chain of command, with supplemental
staff positions.
Staff positions refer to those employees or departments that provide a
consulting or advisory service to others in the firm. Usually such
departments are not directly involved in producing the goods or services that
are the companys major source of profits.
The staff members role is to provide consultation, advice, and support
to line managers in areas outside their expertise. The actual responsibility for
the end performance, however, remains with the line manager.
Provisions for consultation and staff support, in addition to the clear
lines of authority, give the line and staff organization an important
advantage over the line structure. For this reason it has become the most
widely used form of business organization.

President

Engineering
Design
Manager

Marketing
Manager

Design
Staff

Supervis

Production
Manager

Marketing
Research
Staff

Supervis

Supervis

Supervis

C. COMMITTEE ORGANIZATION
In this arrangement, a position or responsibility is assigned to a group
of individuals rather than a single person. The group shares the
responsibilities delegated to that position and makes decisions by consensus.
Thus, the talents of several people are involves in solving a dingle problem or
in making a difficult decision.
A major weakness of the committee organization is the difficulty
involves in getting several people to act cohesively and to make decisions
promptly. Communications among members of a committee can also pose
problems, and it may be hard for an individual to function effectively with a
committee rather than a single person as the boss. For these, reasons, the
committee setup is not a widely used form of business structure in the
United States, although it is often found in political and government
organizations, and in some other industrialized countries.
President

Software
Design
Committee

Supervis

Supervis

Documentati
on
Standards
Committee
Supervis

Supervis

THE TOOLS OF THE ANALYST


Analysts reduce systems to models on paper or in the computer to help
visualize a new or modifies system before it is put in place. System models are like
blueprints in that they document a system with design diagrams. Design diagrams
serve as communications and planning tools, demonstrate logical relationships,
facilitate troubleshooting, and document a system.
The traditional design tools include the Gantt chart, decision trees, decision
tables, and flowcharts. System flowcharts diagram the flow of information
throughout a system, while program flowcharts trace the flow throughout a
computer program. These tools were devised before structured programming
concepts came into use.
Structured design tools are more recent developments. They are based upon
top-down program logic and modular structures. The data dictionary is a collection
of specifications about the nature data and information. It provides standards and
uniform formats for elements in a system. A data dictionary may include data
elements, data records, data stores, data model entities, and data flows.
Other structured tools include data flow diagrams, hierarchy plus inputprocess-output (HIPO) charts, Warnerr-Orr diagrams, and Nassi-Shneiderman charts.

Structured English, also known as pseudocode, describes logic flow. Presentation


graphs show the flow of information in a pictorial manner.
SYSTEM MODELING
A System Model is a representation of an in-place oir proposed system that
describes the data flow throughout the structure. The model describes the points
where data or information enters a system and the places where it will be
processed, as well as the actions taken and the points where data will be output.
By reducing a system to a model on paper or in a computer, the analyst can
visualize, modify, or experiment with changes before they are actually put in place.
If these changes were implemented in real life and they were unsuccessful or
inefficient, the organization could waste thousands or perhaps millions of dollars.
System models are like blueprints of a building. In business, analysts use
models to describe billing and accounting systems, inventory and payroll-processing
systems, manufacturing systems, and the like.
A system model is documented through a variety of design diagrams. A
Design Diagram is a graphic or visual representation of a structure. Design
diagrams include data flow diagrams, structured charts, decision trees, and other
items.
MAJOR ADVANTAGES of Design Diagrams are:
1. Serve as a communication tools.
5. Demonstrate relationships.
2. Serve as a planning tool.
6. Promote logical procedures.
3. Provide an overview of a system.
7. Facilitate troubleshooting.
4. Define roles.
8. Document a system.
Design Tool
Gantt Chart
Decision Table
Flowcharts
Data Dictionary
Data Flow Diagram
HIPO Chart
Structured English
Warnier-Orr Diagram
Nassi-Shneiderman
Chart
Presentation Graph

Structu
red
Tool

x
x
x
x
x

Shows
Data
Flow

Shows
Decisio
ns

x
x

Shows
Sequen
ces
x

Shows
Detail

Visual
Chart

Textua
l Chart

x
x

x
x

x
x

x
x
x

x
x

x
x

x
x

TRADITIONAL DESIGN TOOLS


For many decades, systems designers have relied upon various traditional
tools to illustrate the flow of information throughout the system. These tools are
used by analysts. It may appear strange that tools only 20 or 30 years old are
considered traditional But since the world of computers and information systems
is so dynamic, even one year can see a generations worth of change.
A. DECISION TREE is a graphic representation of decision points, the alternative
courses of action available to the decision maker, and the possible outcome from
each alternative, as well as relative probabilities and the expected values of
each event.
It is read form left to right, showing decisions to be made. Tasks such as granting
credit, approving a purchase, or handling a customer complaint, which involve
making decisions, can be illustrated in this type of chart.

Decision trees sometimes include numbers that express the probability of an


event at each decision. By placing valued at each juncture, an analyst can better
assess the overall probability of certain events taking place.

ADVANTAGES
Facilitate evaluation of alternatives
by giving a visual presentation of
expected results of each alternative
Useful when sequential people are
involved

DISADVANTAGES
May be difficult to determine all
possible events, outcomes, and their
probabilities
A case involving many events and
sequential decisions may result into a
more complex decision tree which may
not be easy to use

Nodes
intersections in a decision tree.

- Decision Points/Nodes
- The points at which the decision-maker must choose an action.

- Chance Points (State of Nature/Probability Nodes


- Points at which some event are related to the previous decision will occur
---- Branches/connectors
Steps
1.
2.
3.

in Preparing:
Identify the decision points and chance points.
Determine events that may result from chance points
Estimate outcomes (payoffs) of each event, as well as their estimated
probabilities.
4. Compute expected value of outcomes.
5. Evaluate the results and choose the best course of actions.

B. GANTT CHART (Bar Chart) shows the different activities or tasks in a project,
as well as their estimated start and completion times.
In 1914, Henry L. Gantt, introduced a scheduling chart now known as the Gantt
Chart. It is a fundamental planning tool of the analyst. Down the left hand
column are listed the tasks or activities to be performed. The right-hand portion
of the chart has horizontal bars that show the duration of each activity. If a
complex task is broken down into several subtasks, these are also shown.
The chart marks off time periods in days, weeks, or moths. Thus, we can see at a
glance what activities are to be performed, when each begins, and when each
terminates. Much like a calendar, the Gantt chart is based upon time intervals
and does not show the logical flow of information throughout a system. However,
it remains a useful tool for documenting systems work.

ADVANTAGES
Simple to construct and use, can be
used on small type of projects.
Very useful control tool
Can be used to monitor activities in a
project

DISADVANTAGES
does not show interrelationships
among activities in a project
Only simple relationships can be
shown

C. DECISION TABLES are charts in the form of matrices that graphically display
conditions, options, and alternatives to be dealt with when making business
decisions.
A decision table is composed of several parts:
Condition stub
- lists all possible conditions that could arise in making a
decision.
Action stub - lists all possible actions that may be taken.
Condition entry - lists all possible combinations of conditions that may
occur.
Action entry
- describes what actions will be followed for each set of
conditions.
Rules
- entry sections are lined off in vertical columns. Each rule
specifies what actions are to be taken for each set of conditions.
Decision tables enable the analyst to lay out a complex variety of conditions and
to specify how each set of conditions should be handled. The rules developed in
a decision table can be used as the basis of a procedures manual for employees,
to teach them how to handle various situations and to endure consistent
treatment. Decision tables are also used when designing computer programs.
They describe all the possible options in a problem and the specific actions that
the computer must execute for each set of conditions.
Decision tables have several advantages. They lessen the possibility of omitting
essential elements and ensure that a given set of conditions will be handled
consistently. They are easier to understand than lengthy verbal descriptions of
choices. As do other tools, they require the analyst to refine his or her thinking
and to clarify details. The decision table cannot be completed until analyst has
explicitly defined all the conditions and actions involved.
D. FLOWCHART is a graphic representation of the steps in the solution of a
problem, in which symbols represent operations, data flow, hardware, and the
system plan. Flowcharts can document either business systems or computer
programs.
System Flowchart diagrams illustrate the movement of data in an
organization. They show the sequence of steps through which information
moves, including related personnel, workstations, forms, records processing, and
associated activities. Program Flowcharts show the sequence of steps
performed in a computer program. System Analysts uses program flowcharts
when working with computer programs. Systems flowcharts document the
overall system, while program flowcharts deal with the information flow through
the computer.

STRUCTURED DESIGN TOOLS


Much experimentation and research has gone into developing new graphic
and visual tools for designing and documenting systems. During the past decade

these structured tools have become widely used by analysts and are rapidly
replacing traditional design tools.
Structured design tools emphasize the visual or graphic nature of a
problem. They break systems down into elements known as modules. A module is
one component of a system. Structured tools emphasize the logical flow of
information rather than physical manipulation.
A. DATA DICTIONARY is a composite collection of specifications about the nature
of data and information. It is a repository of descriptions of the form, style, and
content of data, as well as of the methods that will be used to process and report
it.
The Data Dictionary is the foundation of structured systems analysis. It provides
the standards and uniform format by which all elements or parts of a system are
designed and coordinated. It places all information in a structure or hierarchy.
At the top of the hierarchy is the Data Element. It is the smallest unit of data
that will be processed or become part of the record. Below are Data Records. It
is a collection of elements, such as names, addresses, or sequences of records,
treated as a unit. Next on the hierarchy are the data stores, data model
entities, and the data flows. Data stores describe the files that hold data,
data model entities, define what records and elements will be treated as a
unit, and data flows specify pathways for moving.
The dictionary may also include standard tables of codes or words and their
meanings, as well as alternate names or definitions. Its existence unifies a
system and develops consistency. The dictionary can contain uniform screen
displays or standard output reports. It provides a common denominator wherein
all reports, data gathering, processing, output functions, input screens, and
storage files can be integrated.
B. DATA FLOW DIAGRAM is a graphic illustration that shows the flow of data
and logic within a system. It is used as a system modeling tool because of its
greater utility. The shape of the symbol indicated to the analyst that a specific
operation is performed. The arrows that connect the symbols show the direction
in which data flows. Descriptive labels are usually placed within each symbol or
next to the connecting lines to further describe the flow and transformation of
data.
The detail and complexity of a data flow diagram varies with the system being
described. Data flow diagrams are composed of four basic symbols:
External Entity is a square box that specifies either the source or the
destination of data. It shows where data originates outside a system. It is
sometimes called Source where a point outside the system that generates
data; or, Sink is a point outside the system that receives data. Both are
external entities, drawn as square boxes.
Process symbol is drawn as a rectangle with rounded corners. It represents
the transformation or processing of information within a system. The process
symbol shows those places in a system where calculations are made or where
information is changed in character.
Data store is a point in a system where information is permanently or
temporarily stored or held. It is shown as a rectangle with one end open.

Information flowlines, sometimes called pipes or vectors, connect external


entities, process, and data store elements. These lines, always drawn with an
arrowhead, trace the flow of information throughout the system.

CONTEXT Diagrams shows the entire system as one general element. It is the
most overall view one can obtain a system. All sources and sinks of data are
linked to this one entity, using flowlines or pipes.
DECOMPOSING Data Flow Diagrams is to view a system starting at its most
generalized level and refining each element step by step. Exploding or
decomposing elements is a method by which a group of related charts explain
an operation in increasingly more detailed levels.
C. HIERARCHY PLUS INPUT-PROCESS-OUTPUT DIAGRAM were developed by
IBM Corp. in an attempt to provide programmers with better structured tools for
dealing with systems. HIPO diagrams consist of three distinct types:
Visual Table of Contents (VTOC) shows a hierarchy in which the level of
detail increases from the top of the chart to the bottom, moving from the
general to the specific.
IPO Overview Diagram known as general sequence of steps.
IPO Detail Program is a detailed chart.
These diagrams enable analysts to define procedures and operations in a
hierarchical manner, correlating input, processing, and output steps with the
integrated whole expressed in the visual table of contents.
D. STRUCTURED ENGLISH also known as pseudocode; expresses language
commands in an English-like form that greatly facilitates programming. The
Structured English has levels of indentation similar to the levels of detail found
on the VTOC. Pseudocode includes key words in capital letters that reflect the
major programming commands to be used when actually coding the program.
Structured English is written in a terse sentence form resembling an outline.
Steps in the program are listed in sequence. Items are indented to show
subordination. Once completed, a set of pseudocode instructions provides an
easy bridge to programming. It becomes a communication tool used by both the
programmer and the systems analyst.
E. WARNIER-ORR DIAGRAMS Named for its creators, Jean- Dominique Warnier,
and Ken Orr, who further developed it, the diagram resembles a visual table of
contents placed on its side. The major or general modules are listed at the left of
the page, while the right shows the detailed modules. Brackets define where
each subroutine or module relates to the next higher level.
Many analysts prefer the Warnier-Orr diagram over the VTOC because the
WarnierOrr chart can be drawn without templates or artists instruments and
shows at a glance each level in the hierarchy.
F. NASSI-SHNEIDERMAN CHARTS
In the early 1970s, Isaac Nassi and Ben Shneiderman developed a form of
programming chart that closely resembles the control structures used by
programmers. It describes the data flow through a computer program. These

charts, sometimes known as structured flowcharts, are used by analysts and


programmers because they clearly show the logic in a program.
G. PRESENTATION GRAPHS are visual charts that show the flow of information
through a system in a pictorial manner. These charts rely upon pictograms or
icons that show people, printouts, terminals, paper files and so on. This is used
when communicating with non-technical people.

HOW TO PREPARE FLOWCHARTS


Flowcharts have been used to document systems for many years. Recently,
however, other techniques, including data flow diagrams, structure charts and HIPO
charts, have gained popularity because they lend themselves to structured
programming. Nevertheless, flowcharting remains a valuable tool in the systems
analysts repertoire.
One of the reasons why flowcharting continues to be used is that a standard
set of symbols has been approved by the American National Standards Institute
(ANSI) in their X3.5-1970 standard. In addition, an international standard has been
adopted by the International Standards Institute (ISO).
Flowcharts are drawn using a standard set of symbols, ANSI separates the
symbols into several categories. The two major groups are basic and specialized
symbols. Acceptable flowcharts may be drawn using only the basic symbols.
Specialized symbols are more specific and give more information about an
operation; therefore, they are preferable to basic symbols. Both the shape of the
symbol and the text within it convey descriptive information about the step being
represented.
Basic Symbols
Input/output
Annotation

Process

Flowline

Crossing of Junction

Flowline

Flowline

of

Comment

Specialized Input/Output Symbols


Punched Card
Document

Punched Tape

Deck of Cards

Magnetic Drum

Manual Input

File of Cards

Magnetic Disk

Display

Online Storage
Communication Link

Core

Magnetic Tape
Storage

Offline

Specialized Process Symbols


Decision

Auxiliary Operation

Predefine Process

Merge

Preparation

Extract

Sort

Collate

Manual Operation

Additional Symbols
Connector

Terminal

Parallel Mode

SYMBOL DESCRIPTION AND USAGE


General Input/Output Symbol
A parallelogram is the symbol that represents input or output media or
operations. This is a generalized form that may be used for a variety of input or
output media such as line printers, optical character scanners, and keyboards. It
also indicates all types of input or output processes, such as reading in a payroll
from time cards, reading sales slips, and printing out invoices or reports
Online Storage
The Online Storage symbol refers to input/output operations performed on
electronic media that are connected to a computer and are capable of storing data.
The symbol indicates that a file is recorded on an online storage device, that new
data is to be written on the device, or that data already recorded is being accessed.
This symbol may represent magnetic tape or disk units.

Magnetic Tape
A symbol shaped like reel of tape specifies an input or output operation
performed on magnetic tape.
Primary Storage
This symbol, labeled core, specifies that data is being input or output from a
primary memory device.
Magnetic Drum
Specifies input or output operations being performed on a magnetic drum
storage device.
Magnetic Disk
A symbol resembling a group of disks specifies input or output operations on
magnetic disk storage devices.

Offline Storage
This symbol refers to input/output operations performed on data storage
media not connected to a computer. It indicates that a file is stored on that media,
that new data is being recorded, or that stored data is being accessed.
Punched Card
A symbol shaped like a punched card is used to show that data is stored or
being input or output on punched cards.
Document
A symbol shaped like a torn piece of paper shows that data is to be recorded
or stored on a hard copy document, or that the output will be a written, printed, or
typed hard copy document. Preparation or storage of reports, signatures, forms,
invoices, and statements are shown using this symbol.
Punched Tape
A symbol shaped like a piece of paper tape specifies data stored on or being
punched into paper tape. This symbol indicates that the data is being accessed by a
paper tape reader, that a file is available on paper tape, or that a file is available on
paper tape, or that the output of a process will be on paper tape.
Manual Input
This symbol represents a manual input operation. It is used to show those
steps in a system in which data is entered for processing using pencil and paper or
a keyboard.
Display
This symbol is used whenever an input or output operation in a system
involves a video display device.
Communication Link
A symbol shaped like a lightning bolt signifies that elements in a flowchart
are connected via some form of communication link. Microwave, telephone lines,

and private leased lines over which data can be transmitted are shown with this
symbol.
Process Symbol
A rectangular box is the generalized process symbol. It indicates any process
operation, such as sorting, merging files, manipulating data, performing
calculations, testing data, or executing a computer program.
Manual Process
This symbol indicates that a process is being performed manually, without
the use of machine or computer.
Auxiliary Operation
A square specifies that an operation will be carried out on equipment not
connected to a computer. It is used to indicate operations such as listing records
recorded on magnetic tape or line printer.
Merge
The inverted triangle shows that two or more files are to be combined into
one. This symbol can indicate a manual or computer operation.
Extract
A triangle indicates data or records being pulled from a file manually or
electronically.
Sort
This specialized symbol indicates that a sorting operation is being performed
on files or records. The process can be executed manually or by computer.
Collate
This symbol shows that two or more files are to be combines into one file that
may or may not be in the same order as any of the original files.
Flowline Symbol
The direction of flow or movement between elements of a system is shown with the
Flowline symbol, a line that connects both points in the flowchart. An arrowhead at
one end of the line indicates the direction of flow. If no arrowhead is shown, it is
assumed that flow moves from left to right, or from the top of the page to the
bottom.
Connector Symbol
The connector symbol, a small circle with a letter or number inside,
shows flow or movement between elements in a system. One symbol is used
at the terminal point of a sequence and a second symbol with a matching
label points to the beginning of the next sequence where flow resumes.
Arrowheads indicate the direction of flow.
This symbol is often more convenient to use in flowcharts than
flowlines. It eliminates lines that cross or form confusing junctions. It is useful for
directing flow to sequences on other pages in a multiple flowchart. It improves the
appearance and clarity of flowcharts.
Annotation Symbol

Notes or comments can be added to a flowchart with the annotation


symbol. This symbol, an open-ended box, encloses additional explanations or
descriptive text related to a given step. A broken line points to the step in the
flowchart that it describes.

HOW TO DRAW FLOWCHARTS

The rules and symbols used in the preparation of a flowchart are


standardized and easy to understand. They represent an almost universal language
for communications between systems analysts.
The care and detail used when preparing a given flowchart varies according
to the charts immediate purpose. For preliminary planning and experimentation,
the symbols are drawn freehand and show only major elements in a sequence or
system. Later the chart may be expanded, refined, improved, and drawn
permanently using a template, ruler, pen, and ink.
Physical Considerations
Flowcharts should be drawn on 8 x 11 inch paper (or other standard page
size if required). If the charts are to be kept permanently, a good grade of 20-pound
bond paper should be used.
Leave adequate margins (a minimum of 1 inch in all sides of the page, 1
inches if binding is a consideration). Leave sufficient space between symbols. Label
the flowchart at the top with the name of the system or subsystem to which it
relates and other important details, such as the date and revision number. If several
pages are required for a single flowchart, number them consecutively.
Use a template to make sure that the shape of each symbol adheres to
recognized standards.
Content Considerations
Techniques and conventions that should be followed:
1. Wherever possible, draw the direction of flow from left to right and from top of
the page to the bottom. Use arrowheads to indicate the direction of flow.
2. A symbol may vary in size, but its shape must adhere to the proportions stated
in the ANSI standard and its orientation on the page must be unchanged.
3. Always show a data flow path in the simplest way and avoid crossing flowlines
whenever possible. Use the connector symbol to prevent crossing lines.
4. Many analysts prefer to have flowlines enter a box from the top only. If more
than one line is involved, they are joined before entering so that only one line
actually goes to the box. Several flowlines may leave a box, either from separate
points in the box or from one line which then separates into several branches.
5. Include descriptive text within each symbol to describe the operation
represented by the box. Use short, concise terms and avoid ambiguity.

6. Use the annotation or comment symbol liberally throughout a flowchart.


Annotative text should contain important information about data, data paths,
processes, reports, media, and workstations that cannot be conveniently
included within a symbol.
Several levels of flowcharts are often used to describe a single system. A
block diagram flowchart may show only the major elements. These are called macro
flowcharts. Detailed charts may include more elements or break out blocks into
smaller components. These are called detail or micro flowcharts. The level of detail
shown on a flowchart should be consistent. All equivalent elements in a system
should be represented with the same degree of emphasis and specification.

GANTT CHART
Planning
Problem definition
System Analysis
Interviews
Direct Observation
System Design
Prototype terminals
Output design
File design
System Development
Select Vendors
Train staff
Prepare documentation
System Implementation
Changeover
System Evaluation
0

DECISION TREE
Air Freight
Prepare Invoice
Yes
Pickup

How to Ship?

Truck
Customer

Goods in
Stock
Prepare Invoice

Manufacture
Goods

No

Yes
Raw Materials
Available?

No

Order Raw

Manufacture

Goods
Materials

DATA HIERARCHY
Data
Element
Data Record

Data Model
Entity

Data Stores

Data Flows

DATA FLOW DIAGRAM


Payroll System Context Diagram
Time Cards
Employee
s

0
Payroll
System

Paychecks
Employee
s

Governme
nt

Payroll System
1.
3

Employ
ee

Time Card File

1.
4

Tax Table File

1.0

1.1

1.2

Verify
Hours
worked

Compute
Salary
Deductions

Prepare
Paycheck

Employ
ee

1.6
1.
3

Check Stub

Prepare
Remittance

WARNIER-ORR DIAGRAM
Compute
State Taxes
Program

State Report
Program
Write Paycheck
Program

Payroll
Processing

Employee
Paycheck
Program

Credit Union

Governme
nt Agency

Program
Compute
Federal Taxes
Program

Federal
Report
Program

NASSI-SHNEIDERMAN CHARTS
Input Payroll Data
Input Deductions
Hourly
Salary

Hourly or Salary?

Compute Monthly Gross Pay

Compute Hourly Gross Pay

Compute Payroll Taxes


Credit Union
Yes

Deductions?

No
Compute Net Pay
less Credit Union Deductions
Print Out Paycheck

PSEUDOCODE
Prepare invoice record
READ name, account number, cost, balance

Compute Net Pay

IF balance = 0
THEN
skip to next invoice
ELSE
compute selling price
price = cost x .25
ENDIF
IF balance = 10.00
THEN
print out invoice
ELSE
go to next record
ENDIF
Increment invoice counter
End
HIERARCHY PLUS INPUT-PROCESS-OUTPUT (HIPO)
Visual Table of Contents (VTOC)
1.0
Payroll
Processing

1.1
Compute
Federal Taxes
Program

1.2

1.3

Employee
Paycheck
Program

Compute
State Taxes
Program

1.1.1

1.2.1

1.2.2

1.3.1

Federal
Report
Program

Credit Union
Program

Write
Paycheck
Program

State Report
Program

Input-Process-Output (IPO) Chart


Program: Write Paycheck
Application: Payroll Processing
Employee
Name

Reference No.:1.2.2
Date: 6-21-88

Hours Worked

Compute Gross
Pay

Pay Rate

Compute Net Pay

Deductions

Print Out

Paycheck

DECISION TABLE
1
Supply-adequate
Supply-below
minimum
Supply-out of stock
Items discontinued
Purchase requisition
made
Old account
Large order
Sale item
Write pick order
Make purchase
requisition
Cancel order
Write order
confirmation
Prepare invoice

1
0

1
1

1
2

1
4

1
5

1
6

1
7

Y N N N N N N N N N N N N N N N N
N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
N N N N N N N N N N N N N Y Y Y N
N N N N N N N N N N N N N N N Y
Y N Y N Y N Y N Y N Y N Y N
Y Y Y Y Y Y N N N N
Y Y Y Y N N Y Y N N
N N Y Y
Y Y
X
X X X X
X
X
X
X
X
X X
X

N
N
N
X

N
N
N
X
X

X X X X
X X X X

REVENUE/RECEIPT CYCLE
PURCHASING/DISBURSEMENT CYCLE
PAYROLL CYCLE
CONVERSION CYCLE
FINANCING and INVESTING CYCLE

X
X
X
X X

X X

MAJOR ACCOUNTING CYCLES


A.
B.
C.
D.
E.

1
3