A feasibility study involves a detailed assessment of the need, value, timeliness and practicality of aproposed undertaking such as information systems development. More importantly, it helpsdecision makers to make informed and transparent decisions at crucial phases of the systemdevelopment life cycle (SDLC) when determining whether it is still viable to commit scarce andexpensiveresources to the development of information systems.ObjectivesThis assignment has the following objectives:1. To understand the concepts of feasibility and feasibility study/analysis,2. To be able to identify and describethe important criteria for assessing feasibility,3. To be able to identify and use tools and techniques for assessing feasibility,4. To be able to evaluate feasibility during the life of project life cycle and recommendappropriate action to management.5. To practice using an industry tool to plan work and collaborate.Task 1 – Researchtasks:a) Research, choose and provide a definition of the terms “feasibility” and “feasibilitystudy/analysis” and describe the characteristics of your chosen definitions. (5 marks)b) Develop a set of criteria with which to assess the feasibility of a given information systemsolution. Describe each criterion. (15 marks)c) Identify the phase(s) of the S D L C ( Systems Development Life Cycle) Methodology inwhich project/system feasibility should be measured. Discuss why these phase(s) havebeen identified and why others are not included. In this discussion, describe the techniquesand issues to be addressed when assessing feasibility. (10 marks)Task 2 – Create FeasibilityReport and Recommendations:a) Prepare a feasibility report (45 marks). Refer to the information in the case study below.Assume that the organisation decides to continue with improving their existing IT system. Allthe analyses have been carried out and the logic design of the enhanced information systemhas also been prepared. Before investing more resources, you need to determine possiblesolutions to solve the problems identified and meet the requirements. For this task you needto propose and analyse three alternative solutions that will cover the all functionalrequirements including Distribution and scheduling, HR, marketing, sales, inventory, andaccounts. In your feasibility report:o use a Candidate Systems Matrix to describe your possible solutionso use a feasibility analysis matrix to evaluate the feasibilityo include calculations for economic feasibility, taking Present Value into accounto state the discount rate you used in your economic feasibility calculation and state areason why you picked that rateb) After assessing the potential solutions against the criteria that you have developed in Task 1,you need to recommend one of these solutions to your client. Justify yourrecommended solution. (15 marks)3ISCG 7142 Assignment 2, Semester 2-2017Kiwi Auto Parts Ltd – Case StudyKiwi Auto Part Ltd is one of New Zealand’s successful distributors of auto parts to retailersacross the country. Tom Mitchell and his wife Sarah originally owned an auto-shop inCentral Auckland. As their operations grew, they realized the potential and started up KiwiAuto Part Ltd in 2004 using venture capital, and have realized a good profit for each yearthat they have been in business.Last year Kiwi Auto Part turned $2 million in profit from a sale of $10 million with over 80retailers in the North Island and 20 retailers in the South Island.Kiwi Auto Part purchased a warehouse in Penrose, Auckland, and have used it as a centraldistribution point to serve their retailers. As most of their business is centred in the NorthIsland, they manage the company operations out of Auckland in an office above thewarehouse.The company expanded to Christchurch in the South Island in 2011 as a result of a studycarried out by Nexus Research Group in 2010. The study aimed at evaluating expansion ofthe company to the South Island.The South Island operation was initially a small distribution centre, distributing productsto retailers. Business has been so successful that in June 2011 they opened a regional officeand distribution centre in a small warehouse in Christchurch, where they receive bulkpackaged products from Auckland by plane. The objective is to provide three times weeklydelivery service to all customers. This has been successful in the North Island so they aretrying to ensure the same service to the Christchurch area.Packaged products (auto parts packaged ready for selling) are dispensed from Auckland andChristchurch after receiving emails or phone calls from the retailers. The North Islandproducts are prepared in the preparation shed next to the warehouse in Auckland. Thecompany has a fleet of six cars and four vans on the road six days a week in the North Island,and two cars and a large van for local deliveriesaround Christchurch.Kiwi Auto Parts has been the subject of a review by AlphaIT Solutions Ltd (AITS). AITS haslisted the problemsthat they have identified and have estimated some of the associated costs.1. The system is becoming unmanageable. Staff are putting in a total of around 80 hoursextra per week just working around the problems. At an average pay rate of $30 perhour, these costs are taking a large bite out of the profits.2. The distribution schedule is so tricky to work out that, when Lindsay is not available, theschedules are very inefficient, which can cause extra trips or longer journeys thannecessary. They estimate that an unnecessary extra 10,000 kms are covered each year.Since the cars and trucks have a running cost of $10 per km, this is significant.
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