1. Chapter 2 Systems Techniques and Documentation.

2. Presentation Outline How does this system work? Systems Techniques
Flowcharting Techniques
System Technique Symbols
The Use of Systems Techniques

3. I. Systems Techniques
Systems techniques are tools used in analysis, design, and documentation of system and subsystem relationships.
Flowcharting
Logical Data Flow Diagrams (DFDs)
Charting Techniques
Narrative Techniques
Resource Utilization Analysis
Decision Analysis Techniques

4. A. Flowcharting
Read
Record
A flowchart is a symbolic diagram that shows the data flow and sequence of operations in a system.
Decision
Process 1
Process 2
Output

5. B. Logical Data Flow Diagrams (DFDs)
A systems analyst often acts as the communication link between users of a system and the programmers/systems support staff who will physically design the system to meet the user needs.
The intent of using DFDs is to separate clearly the logical process of systems analysis from the physical process of systems design. The systems analyst provides a logical description to the systems designer/programmer, who then designs the physical specification..

6. HIPO charts consist of two segments.
C. Charting Techniques
Hierarchy chart breaking down processing tasks into modules. See Figure 2-6 on page 38.
IPO (Input-Process-Output) chart describing the input- process-output requirements of each module. See Figure 2-5 on page 38.
HIPO charts consist of two segments.
See Figure 2-6 on page 239.

7. D. Narrative Techniques
Narrative techniques are often particularly useful in the fact finding stage of systems analysis. Various techniques include:
In depth and structured interviews
Open-ended and closed-ended questionnaires
Document reviews

8. E. Resource Utilization Analysis
Work measurement involves techniques used to identify tasks, obtain and adjust time estimates for the tasks, and analyze requirements in terms of total task time and capacity utilization
Work distribution analysis involves assignment of tasks to employees. See Table 2-2 on page 50.
See Table 2.2 on page 52.

9. F. Decision Analysis Techniques
A decision symbol in a flowchart can only show two flow condition. More complex decision functions may be represented using one of the following:
Branching tables
Decision tables
Branching Tables – See Figure 2.19 on page 53.
Decision Tables – See Figure 2.21 on page 54.
Decision tables can be used in lieu of program flowcharts.

10. 1. Branching Tables
A branching table consists of a single condition that can result in more than two paths of processing.
Go to
Senior
Junior
Sophomore
Freshman
Code Equal to
Orientation
Exit
Evaluation A B
The “Go to” section contains either a connector symbol reference or a single flowline to another symbol.

11. Illustration 2. Decision Tables
A decision table is similar to a branching table but more complex in that it incorporates multiple decision criteria.
Illustration
An analyst wishes to prepare a decision table for
purchase order procedures. First, there is a credit
check of the customer. If credit is approved, the
order is accepted. If the order calls for 0 to 25 units,
there is no discount on the order. If the order calls
for 26 to 55 units, it is eligible for a 5 percent
discount; if more than 55 units are ordered, the
discount is 10 percent.

12. An Example of a Limited-Entry Decision Table
Condition entries are limited to Y, N, or N/A (-). Processing actions are either present or absent.
Credit approved N Y
units -
units
Over 55 units
Reject order X
Accept order
No discount
5% discount
10% discount

13. An Example of an Extended-Entry Decision Table
Entries indicate specific conditions, specific actions to be taken, or reference to other decision tables.
Credit approval N Y
Units in order -
0 – 25
26 – 55
Over 55
Order Acceptance
Discount given 0% 5%
10%

14. II. Flowcharting Techniques
Systems Flowchart
Analytic Flowcharts
Document Flowcharts
Forms Distribution Chart
Program or Block Flowcharts

15. A. Systems Flowcharts
Cash
Payments
Remittance
Advices
Prepare
Batch
Control
Total
A systems flowchart is a graphical representation of the overall flow of work, documents, and operations in an application system. The sandwich rule states that every process should be “sandwiched” between an input symbol and and output symbol.

16. B. Analytic Flowcharts
Analytic flowcharts identify all significant processing in an application, emphasizing processing tasks that apply controls. In other words, functional areas are separated by columns. See Figure 2-10 on page 42.
See Figure 2.10 on page 44.

17. B. Document Flowcharts
Identifies the point of origin, distribution, and ultimate disposition of each document used in an application system. See Figure 2-11 on page 43.
See Figure 2.11 on page 44

18. C. Forms Distribution Chart
Illustrates the distribution of a single multiple copy form within an organization. Emphasis is on form recipient rather than processing. (The following illustrates the Purchase Order in Figure 2-11 on page 43)
Purchasing
Stores
Receiving
Vendor
Acc. Payable 2 1 3 4 5 6
See Figure 2.12 on page 45.

19. E. Program or Block Flowcharts
Program flowcharts are used by system developers to provide detail about individual processing functions. The clutter of the additional processing detail is thus removed from a flowchart showing overall processing.
Compute
Gross Pay
Withholdings
Printing
Payroll Processing
Hours
Worked
Payroll
Register
Checks

20. III. System Technique Symbols
Basic Flowcharting Symbols
Other Symbols

21. A. Basic Flowcharting Symbols
Basic Input/Output Symbol – Making data available for processing or the recording of processed information.
Process – Transforming data into information or other data.
Flowline Symbol – Used to show the sequence of information and processing.
Left to right and top to bottom.
Annotation – Used to show descriptive comments.

22. Specialized Input/Output Symbols – See Figure 2-2 on page 35.
B. Other Symbols
Specialized Input/Output Symbols – See Figure 2-2 on page 35.
Data Flow Diagram Symbols – See Symbols in Table 2-1 on page 39. See Illustrations in Figures 2-7 through 2-9 on pages

23. IV. The Use of Systems Techniques
Auditing
Systems Development

24. A. Auditing
Two basic components of an external audit of financial statements include:
Compliance testing is used to determine the extent to which established control procedures are actually being carried out.
Substantive testing to verify amounts shown on financial statements. The level of substantive testing will depend on the extent to which the auditor depends on an entity’s system of internal control.

25. B. Systems Development
Systems development generally consists of the following three phases:
Systems Analysis – Logical data flow diagrams and analytic flowcharts help in providing an overall picture of the how the organization functions.
Systems Design – A blueprint of how the proposed system will function.
Systems Implementation – Taking steps to put system into operation by doing things like training personnel, and acquiring equipment and software.

26. Summary Five Types of Systems Techniques
Five Types of Flowcharting Techniques
Basic Flowcharting Symbols
Uses of Systems Techniques
Flowcharting, Logical data flow diagrams, HIPO charts, Narrative techniques, Resource utilization analysis, Decision Analysis Techniques (Branching and Decision Tables)
Analytic, Document, Forms Distribution, Systems, Program
Input/Output, Process, Flow line, Annotation
External audit, Systems development