Essentials of Systems Analysis and Design, 6e (Valacich)
Chapter 4 Systems Planning and Selection
1) Systems analysis is the first phase of the systems development life cycle.
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2) Requirements structuring is the first activity of the systems planning and selection phase.
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3) Projects identified by top management have a cross-functional focus.
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4) The development group identifies projects based on the ease with which existing hardware
and systems will integrate with the proposed project.
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5) When comparing alternative methods for making information systems identification and
selection decisions, top management’s selection decisions often involve a small system size and
have a cross-functional focus.
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6) To maintain consistency, the classification and ranking of projects should only be performed
by top management or a steering committee.
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7) The criteria used to evaluate projects will vary by organization.
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8) The baseline project plan (BPP) is the primary deliverable from the project identification and
selection phase.
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9) A schedule of specific IS development projects is the primary deliverable from the project
identification and selection phase.
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10) Due to the principle of incremental commitment, a selected project will result in a working
system.
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11) Proper and insightful project initiation and planning, including determining project scope and
identifying project activities, can reduce the time needed to complete later project phases,
including systems analysis.
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12) The objective of project identification and selection is to transform a vague system request
document into a tangible project description.
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13) Project initiation focuses on activities that will help organize a team to conduct project
planning.
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14) Project planning focuses on defining clear, discrete tasks and the work needed to complete
each task.
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15) The major outcomes and deliverables from project initiation and planning are the baseline
project plan and the project scope statement.
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16) The project charter reflects the best estimate of the project’s scope, benefits, costs, risks, and
resource requirements, given the current understanding of the project.
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17) Economic feasibility is a process of identifying the financial benefits and costs associated
with a development project.
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18) Opening new markets and increasing sales opportunities are both examples of tangible
benefit.
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19) Increased flexibility is an example of an intangible benefit.
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20) Site preparation is an example of a one-time cost.
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21) Variable costs are costs resulting from the ongoing evolution and use of a system.
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22) The time value of money (TVM) compares present cash outlays to future expected returns.
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23) Because many projects may be competing for the same investment dollars and may have
different useful life expectancies, all costs and benefits must be viewed in relation to their
present rather than future value when comparing investment options.
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24) Using a discount rate of 10 percent, the present value of a $2,500 benefit received five years
from now is $1,552.30.
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25) Using a discount rate of 14 percent, the present value of a $10,000 benefit received five years
from now is $5,500.49.
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26) Using a discount rate of 12 percent, the present value of a $50,500 benefit received two years
from now is $40,258.29.
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27) The objective of return on investment (ROI) analysis is to discover at what point cumulative
benefits equal costs.
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28) If the net present value (NPV) of all costs is $100,000 and the NPV of all benefits is
$170,000, then the ROI would be 35 percent.
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29) Most techniques for analyzing economic feasibility employ the time value of money concept.
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30) Fulfillment feasibility is the process of examining the likelihood that the project will attain
its desired objectives.
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31) The goal of operational feasibility is to understand the degree to which a proposed system
will likely solve the business problems or take advantage of opportunities.
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32) Generally speaking, legal and contractual feasibility is a greater consideration if your
organization has historically used an outside organization for specific systems or services that
you now are considering handling yourself.
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33) The construction of an information system can have political ramifications.
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34) All information collected during project initiation and planning is collected and organized
into a document called the baseline project plan.
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35) Referencing the Management Issues section of the baseline project plan, the communication
plan provides a description of the team member roles and reporting relationships.
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36) The Explanation of Services is a document prepared for the customer that describes what the
project will deliver and outlines generally at a high level all work required to complete the
project.
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37) A walkthrough is a peer group review of any product created during the systems
development process.
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38) Referencing a walkthrough, the maintenance oracle ensures that the work product adheres to
organizational technical standards.
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39) Referencing a walkthrough, the user makes sure that the work product meets the needs of the
project’s customers.
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40) Referencing a walkthrough, the coordinator reviews the work product in terms of future
maintenance activities.
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41) The systems planning and selection process for an Internet-based electronic commerce
application is no different than the process followed for other applications.
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42) The first phase of the systems development life cycle is:
A) systems planning and selection.
B) systems study.
C) systems analysis.
D) systems design.
E) systems implementation and operation.
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43) Which of the following is one of the three primary activities associated with identifying and
selecting IS development projects?
A) Preliminary investigation of the system problem or opportunity
B) Identification of potential development projects
C) Requirements determination
D) Generate alternative initial designs
E) Requirements structuring
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44) A department head deciding which project requests to submit is an example of:
A) a preliminary investigation of the system problem or opportunity.
B) identifying potential development projects.
C) requirements determination.
D) generating alternative initial designs.
E) requirements structuring.
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45) Research has found that projects identified by top management more often:
A) have a narrow, tactical focus.
B) reflect diversity and have a cross-functional focus.
C) have a strategic, organizational focus.
D) will integrate easily with existing hardware and systems.
E) have a very low systems development priority.
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46) Research has found that projects identified by individual departments or business units most
often:
A) have a narrow, tactical focus.
B) reflect diversity and have a cross-functional focus.
C) have a strategic, organizational focus.
D) will integrate easily with existing hardware and systems.
E) have a very high systems development priority.
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