Question 1

The following are the most important points of a detailed system proposal
(i) who will supply and install the required equipment
(ii) cost-benefit analysis
(iii) comparison of alternative solutions
(iv) implementation plan
A)i, ii and iii
B)i, iii and iv
C)ii, iii and iv
D)ii and iii

Accepted Answer

A detailed system proposal should include a cost-benefit analysis to justify the investment, a comparison of alternative solutions to ensure the best option is chosen, and an implementation plan to guide the project's execution.

Question 2

At the end of the feasibility study the systems analyst
A)meets the users for a discussion
B)gives a summary feasibility report to the management
C)gives a systems proposal to management
D)tells the top management if the system is not feasible

Accepted Answer

The primary deliverable at the end of a feasibility study is a feasibility report, which is presented to management to help them decide whether to proceed with the project.

Question 3

A cost-benefit analysis is performed to assess
A)economic feasibility
B)operational feasibility
C)technical feasibility
D)all of the above

Accepted Answer

Cost-benefit analysis primarily assesses economic feasibility by comparing the costs and benefits of a project or decision to determine if it is financially viable.

Question 4

The primary objective of cost-benefit analysis is
A)to find out direct and indirect cost of developing the information system
B)to determine the tangible benefits of the information system
C)to determine if it is economically worthwhile to invest in developing the information system
D)to determine the intangible benefits of the information system

Accepted Answer

The primary objective of cost-benefit analysis is to assess whether the economic benefits of a project outweigh its costs, thereby determining if the investment in developing the information system is justified and economically worthwhile.

Question 5

The following assumptions are made in case of break even analysis, except
A)All fixed costs are fixed
B)All variable costs are fixed
C)The prices of input factors are constant
D)Volume of production and volumes of sales are equal

Accepted Answer

Break-even analysis assumes that all costs can be classified into fixed and variable costs, with variable costs changing with the level of output. The statement that "All variable costs are fixed" contradicts this fundamental assumption, making it the incorrect choice.

Question 6

At breakeven point there is
A)Profit
B)Loss
C)No profit or loss
D)None of these

Accepted Answer

At the breakeven point, a business does not make a profit or a loss. This is the point where total revenues equal total expenses.

Question 7

Which of the following should be taken into account when planning a project?
A)Social environment
B)Political environment
C)Operational environment
D)All of the above

Accepted Answer

All of the above factors - social, political, and operational environments - are important to consider in project planning as they can significantly impact the project's feasibility, acceptability, and success.

Question 8

Improvement efforts are determined by:
A)Criticality of problems
B)Current performance
C)Priorities for future output
D)All of the above

Accepted Answer

Improvement efforts are determined by a combination of factors including the criticality of problems, current performance, and priorities for future output, making all the options relevant.

Question 9

Performance measurement is:
A)The determination of improvement efforts.
B)The process of quantifying action.
C)The improvement of operations.
D)The planning and control of operations.

Accepted Answer

Performance measurement is fundamentally about quantifying the efficiency and effectiveness of action, which aligns with choice B. It involves assessing the performance of various aspects of an organization or system, often through metrics and indicators, to understand how well it is achieving its goals. Choices A, C, and D describe potential uses or outcomes of performance measurement but do not define what it is.

Question 10

Performance relating to the five operations' objectives can be plotted on which type of diagram?
A)Quality
B)Outcome
C)Polar
D)Satisfaction

Accepted Answer

Polar diagrams are used to plot performance relating to the five operations' objectives, allowing for a visual comparison of different aspects of performance.

Question 11

Which kind of standards are those that are set arbitrarily to reflect some level of performance that is regarded as appropriate or reasonable?
A)Competitor performance standards
B)Target performance standards
C)Historical standards
D)Absolute performance standards

Accepted Answer

Target performance standards are set arbitrarily to reflect a level of performance that is considered appropriate or reasonable, often based on goals or objectives the organization wishes to achieve.

Question 12

For a police department, using competitor performance standards, a competitor might be:
A)A fire service
B)A foreign police authority
C)A similar police department
D)All of the above

Accepted Answer

Competitor performance standards in the context of a police department can include a variety of other organizations for benchmarking purposes. This can include other similar police departments to compare operational efficiencies and effectiveness, foreign police authorities to understand different approaches and methodologies, and even a fire service, as they share the emergency response domain and can offer insights into best practices in areas such as response times and community engagement. Thus, all the options listed can be considered competitors for setting performance standards.

Question 13

What approach is used to compare organisation operations with those of other companies?
A)SWOT analysis
B)PERT analysis
C)Benchmarking
D)Competitor performance assessment

Accepted Answer

Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Question 14

The origins of benchmarking as it is used today go back to which company?
A)Microsoft
B)Toyota
C)Xerox
D)McDonald's

Accepted Answer

Benchmarking, as it is known today, originated from Xerox Corporation in the 1970s. The company used benchmarking as a tool for measuring and comparing its manufacturing productivity against its competitors. This practice helped Xerox to identify areas for improvement and to adopt best practices, leading to significant enhancements in their operations.

Question 15

A comparison between operations or parts of operations that are within the same total organisation is called:
A)Internal benchmarking
B)Competitive benchmarking
C)Non-competitive benchmarking
D)External benchmarking

Accepted Answer

Internal benchmarking involves comparing operations or parts of operations within the same organization to identify best practices, improve efficiency, or enhance performance.

Question 16

Benchmarking against external organisations that do not compete directly in the same markets is called:
A)Non-competitive benchmarking
B)Collaborative benchmarking
C)Practice benchmarking
D)Non-assault benchmarking

Accepted Answer

Non-competitive benchmarking involves comparing processes and performance metrics to industry bests or best practices from other companies that do not compete directly in the same markets. This allows organizations to learn from the best practices of others without the concerns of sharing sensitive data with direct competitors.

Question 17

Which of the following is regarded as a fundamental flaw in the whole concept of benchmarking?
A)It limits improvements to currently accepted methods of operating.
B)It does not involve learning.
C)It limits critical thinking.
D)It is not a continuous process.

Accepted Answer

Benchmarking is often criticized for limiting improvements to currently accepted methods, as it focuses on comparing with existing standards rather than fostering innovation beyond those standards.

Question 18

What matrix positions each factor according to its performance and its importance?
A)Competitive forces matrix
B)Performance importance matrix
C)Importance performance matrix
D)Customer assessment matrix

Accepted Answer

The Importance-Performance Matrix positions each factor according to its importance to the organization or project and its current performance level, helping to prioritize areas for improvement.

Question 19

What do the letter 'D' and 'I' stand for in Deming's cycle of improvement?
A)Design and improve
B)Develop and implement
C)Design and implement
D)Define and improve

Accepted Answer

Deming's cycle of improvement consists of four stages: Plan, Do, Check, and Act. The "D" in "Do" stands for "Design and implement," and the "I" in "Improve" stands for "Define and improve."

Question 20

Ishikawa Diagrams are another name for what technique of improvement?
A)Cause-effect diagrams
B)Input-output analysis
C)Process maps
D)Scatter diagrams

Accepted Answer

Ishikawa Diagrams are also known as Cause-effect diagrams, which are used to identify the root causes of a problem.

Quiz 10: System Proposals, Feasibility Studies, Cost-Benefit Analysis, and Improvement Techniques

The following are the most important points of a detailed system proposal (i) who will supply and install the required equipment (ii) cost-benefit analysis (iii) comparison of alternative solutions (iv) implementation plan

At the end of the feasibility study the systems analyst

A cost-benefit analysis is performed to assess

The primary objective of cost-benefit analysis is

The following assumptions are made in case of break even analysis, except

At breakeven point there is

Which of the following should be taken into account when planning a project?

Improvement efforts are determined by:

Performance measurement is:

Performance relating to the five operations' objectives can be plotted on which type of diagram?

Which kind of standards are those that are set arbitrarily to reflect some level of performance that is regarded as appropriate or reasonable?

For a police department, using competitor performance standards, a competitor might be:

What approach is used to compare organisation operations with those of other companies?

The origins of benchmarking as it is used today go back to which company?

A comparison between operations or parts of operations that are within the same total organisation is called:

Benchmarking against external organisations that do not compete directly in the same markets is called:

Which of the following is regarded as a fundamental flaw in the whole concept of benchmarking?

What matrix positions each factor according to its performance and its importance?

What do the letter 'D' and 'I' stand for in Deming's cycle of improvement?

Ishikawa Diagrams are another name for what technique of improvement?