Chapter 17

Systems Analysis

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
1 Upper Saddle River, NJ 07458
 Integrated Systems

Are used by many organizations to control office

costs and improve their operating efficiency.
Areas typically incorporated into integrated systems
include these:
Sales

Finance Production

Purchasing Marketing
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
2 Upper Saddle River, NJ 07458
 Are often comprised
Integrated
of several subsystems,
Systems
which commonly
encompass the
organization’s
functional areas.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
3 Upper Saddle River, NJ 07458
 Functional Systems and Subsystems
Incorporate Several Components:

Employees Equipment

Forms/
Materials

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
4 Upper Saddle River, NJ 07458
 Is a series of subsystems
System comprised of interrelated
procedures to help achieve a
well-defined goal.

Consist of related methods

necessary to complete various
Procedures
work processes.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
5 Upper Saddle River, NJ 07458
 Objectives for Developing and Using Systems

1. To maximize the efficient utilization of the

organizational resources.
2. To control operating costs.
3. To improve operating efficiency.
4. To help achieve the objectives of the organization.
5. To help carry out the various functions of the
organization.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
6 Upper Saddle River, NJ 07458
 Advantages of Systems

1. Various functions of the organization are better

coordinated.
2. Wasteful, unproductive, and uneconomical
activities are eliminated.
3. The operating efficiency of the organization is
improved.
4. More effective control can be exerted over various
activities and functions.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
7 Upper Saddle River, NJ 07458
 Disadvantages of Systems

1. A certain amount of operating flexibility may be

destroyed when using a system.
2. Any inefficiency that is built into the system likely
will disproportionately increase as work flows
through the system.
3. A totally integrated system may be affected
somewhat when changes are made in one of its
subsystems.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
8 Upper Saddle River, NJ 07458
 Characteristics of Well-Designed Systems

Flexible
Adaptable

Systematic
Functional

Simple
Resourceful
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
9 Upper Saddle River, NJ 07458
 Elements of Systems
(1 of 2)
Flow of work through a system
Input begins with the input of some
type of resource.
The transformation of input into
desired output takes place during
Processing the processing element, which
is composed of methods and
procedures.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
10 Upper Saddle River, NJ 07458
 Elements of Systems
(2 of 2)
Interaction between the input
Output and processing elements
produces output.
Enables the system to determine
Feedback whether results are meeting
expectations.

Has both internal and external

Controlling
dimensions.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
11 Upper Saddle River, NJ 07458
 Knowledge Is the result of increasing the
Management amount of technological
integration used in designing
operating systems and
procedures.
1. Is emerging from what used to be known as
document management.
2. Involves capturing and communicating
information to those who seek it or who need
it.
3. Involves providing information to the right
person at the right time.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
12 Upper Saddle River, NJ 07458
 Systems and Procedures Staffing Alternatives

Outside consultants

Part-time Full-time
Systems Staff Systems Staff
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
13 Upper Saddle River, NJ 07458
 Factors That Determine Which
Staffing Alternative To Use

1. Size of the organization.

2. Type of the organization.
3. Organization’s commitment to the total or
integrated systems approach.
4. Philosophy of top management toward the
systems and procedures function.
5. Type and extent of technology incorporated into
the system.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
14 Upper Saddle River, NJ 07458
 Outside Consultants

Frequently are hired on a retainer basis.

Advantages
Provide expertise that may not be available with the
other alternatives.
Can be more objective in their recommendations.
Are able to keep the system up to date.
Disadvantage
Are a costly alternative.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
15 Upper Saddle River, NJ 07458
 Full-time Systems Staff

Enables the organization to develop and improve on

a continual basis all of its systems and work processes.

Advantages
Help is available when needed.

Disadvantage

Potential conflict between line managers

and the systems staff.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
16 Upper Saddle River, NJ 07458
 Part-time Systems Staff

When an organization cannot afford the other

alternatives, a part-time staff is usually used.

Advantages
Least costly alternative.

Disadvantage

Staff may not have time nor expertise to carry

out needed assistance.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
17 Upper Saddle River, NJ 07458
 Steps Used in Designing or Modifying Systems

1. Clearly define the process to be studied.

2. Outline the details of the present process.
3. Analyze the present process.
4. Outline the improved process.
5. Install the new process.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
18 Upper Saddle River, NJ 07458
 Systems and Procedures Tools

Workload Chart
Flow Process Chart
Office Layout Chart
Right- and Left-Hand Chart
Operator-Machine Process Chart
Horizontal Flow Process Chart
EDP Block Diagram

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
19 Upper Saddle River, NJ 07458
 Workload Chart

Is also referred to as work distribution chart.

Identifies
1. Major activities performed by a given work
unit.
2. Amount of time a work unit as a whole spends on
each activity.
3. Activities performed by each employee and the
amount of time he/she spends performing the
activities.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
20 Upper Saddle River, NJ 07458
 Workload Chart Provides Answers
To These Questions
(1 of 2)

1. Is the work unit performing the work it is

intended to perform?
2. Are employees performing too many duplicate
operations?
3. Are the tasks that each employee performs of a
related nature?
4. Are the special skills and talents of the
employees being used to the fullest extent?
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
21 Upper Saddle River, NJ 07458
 Workload Chart Provides Answers
To These Questions
(2 of 2)

5. Are the major functions of the work unit

actually consuming the greatest amount of
work time and effort?
6. Are the employees’ workloads evenly
distributed?
7. Are the employees productive?
8. Is the flow of work efficient?
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
22 Upper Saddle River, NJ 07458
 Documents Used in Workload Chart Method

Used by employees to keep

Daily Log track of their daily activities.
Identifies the tasks per-
Summary Log formed by employees over
a longer period of time.

Activity List Provides a composite list

of departmental activities
listed in descending order.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
23 Upper Saddle River, NJ 07458
 Flow Process Chart

Is especially useful for identifying each

step in a specific work process.
Various steps comprising a process are
categorized as:
Operation
Transportation
Inspection
Delay
Storage
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
24 Upper Saddle River, NJ 07458
Each operation step is classified as a get ready, do,
or put away step.

Special attention should be focused on the

do steps because if they can be eliminated,
then the get ready and the put away steps can
probably be eliminated as well.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
25 Upper Saddle River, NJ 07458
 Office Layout Chart

Is frequently used in conjunction with the flow

process chart.
Is well-suited for visualizing workflow.
Is used to identify backtracking, criss-crossing,
and inefficient workflow patterns.
Is completed by charting flow of work through the
premises.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
26 Upper Saddle River, NJ 07458
 Right- and Left-Hand Chart

Is used to identify hand movements in a

particular work process.
Categories of movement:
Operation
Transportation
Hold
Delay
Contains space to summarize the present and
proposed processes and differences between them.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
27 Upper Saddle River, NJ 07458
 Operator-Machine Process Chart

Is used to study the relationship between an operator

and the machine he or she uses.

Focuses on the opportunities to eliminate, simplify,

or combine as many steps as possible.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
28 Upper Saddle River, NJ 07458
 Horizontal Flow Process Chart

Is useful for illustrating work processes that involve

multicopy forms.

Chart follows the movement of each copy of the

form through a given work area.

Is useful for outlining various procedures in each

subsystem.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
29 Upper Saddle River, NJ 07458
 EDP Block Diagram

Is used in working with a variety of computer-

based processes.

Involves a series of well-defined symbols that

are interconnected with lines.

Involves a series of steps for which a “yes” or

“no” response is required.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
30 Upper Saddle River, NJ 07458