Question

You will need to estimate the projected benefits as well as the costs in all areas for the project. You will make up the cost and benefit information. Remember to consider the total cost of ownership as well as the tangible and intangible costs and benefits. You may use a spreadsheet to complete this portion. Make sure to clearly label all items.

The information from the project:

Preliminary Investigation Problem: Payroll Systems: incorrect deductions from employee paychecks Recommended Solution: The issues noted will continue to grow as the company grows, it is not clear if the current system can be modified. Thus, it is recommended that a system analysis project be performed. Time & Cost Estimate: This project is estimated to take up to three weeks, for the running of recommended analysis. Below is the cost breakdown; 3 weeks Systems Analyst @ $2100/weekly $6300 1 week Other, IT Staff @ $1000/weekly $1000 If system development continues total cost for this project will depend on the chosen approach. If changes can be made to the current system, cost is estimated at $20,000-$30,000 over a six-to-eight month period. If changes to the current system are not feasible a new estimate will be provided.

Answer 1

Recommendations:

The current problem will intensify as the company continues to grow. At this point, it is unclear, whether the current system can be modified to handle tasks that are being done manually. Accordingly, IT department recommends a full system analyses and possible solutions for the current problem. The main areas to be focussed are: manual processing and computer based payroll processing with Business Information System.

Time and Cost Estimates

We can perform a study during a three-week period. In addition to the time spent by IT staff, we will conduct about 20 hours of interviews with people outside the IT department to look for the feasible solutions. The following is the rough estimate of the costs through the systems analysis phase:

System Analyst 3 weeks @ $2100 per week $6,300

IT Staff 0.5 weeks @ $1,000 per week (average) $500

Total: $6,800

If the project continues beyond the system analyses phase, total cost will depend on what development strategy is followed. If the current system can be modified, we estimate a total project effort of $20,000 - $30,000 over a six-to-eight month period. If modification is not feasible, a revised cost estimate will be submitted.

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THANK YOU.