TUTORIAL QUESTIONS

1. Based on the PERT chart shown below, answer the following questions.

a) What is the critical path for this project? Support your answer with calculations.
ADF = 3 + 1 + 3 = 7 months
AE = 3 + 3 = 6 months
BC = 4 + 3 = 7 months

There are two critical paths in the project: ADF and BC. Both paths have a duration of seven months, which means they
are equally critical. The critical path is the longest path from the beginning to the end of the project and represents the
minimum time needed to complete the entire project. It shows the total time required to finish the project.

b) How will the delay of activity E by one month affect the project time? Support your answer with calculations.
Activity E is part of the slack path, which means it can be delayed by up to 1 month without causing any changes to the
project's timeline. So, even if there is a 1-month delay in activity E, it will not affect the overall project time.

2. Critical thinking: The approach to long-term AIS (Accounting Information Systems) planning outlined in this chapter holds
significance for large organisations that possess substantial investments in computer facilities. However, should small
organisations with considerably fewer information systems employees endeavour to implement planning programs? What
are the reasons for and against such implementation?
Yes, companies with a limited number of IS employees should consider implementing planning programs. This is especially
important if the company is experiencing growth or relying more on computer usage. The extent of planning should align
with the size of the computer facility, dependence on system information, and the potential value of the company's system.

Even with minimal planning efforts, there are benefits to be gained. In smaller organisations, the plan may be as simple as a
few pages containing thoughts and projects, periodically prepared and reviewed by the person in charge of the system.
Alternatively, it could involve a basic cost-benefit analysis.

It's worth noting that smaller companies typically have fewer financial resources compared to larger companies. As a result,
inadequate planning can have more severe consequences and cause greater financial strain for small companies.

3. Critical thinking: A computer was purchased in a Midwest city of 45,000, and in-house programmers began developing
programs. Four years later, only one incomplete and poorly functioning application had been developed, none of the
software met users’ minimum requirements, and the hardware and the software frequently failed.

Note (no need to write this): Not all instances of use or failure to use packaged software are as dramatic or clear-cut as
this. Nor, in all cases, will packaged software meet the functional requirements. However, a careful evaluation of
packaged software can result in a system that performs admirably and cost-effectively for data processing users.
a. What do you think are the reasons why the city was unable to create software that is of good quality and
functional?

Some potential factors that could have contributed to the city's inability to produce a reliable and effective system
include:
● Poor management.

● Inexperienced systems analysts and programmers.

● There are inadequate needs, analysis and requirements definitions.

 ● Management does not understand development well enough to direct and manage it.

● There is a failure of users and development personnel to communicate.

● There is a failure to establish checkpoints for monitoring the project.

● There is a lack of continuity among the people working on the system.

● There is a failure to plan the development project adequately.

b. Would the city have been better off purchasing software? The city would have been better off purchasing canned
software for the following reasons:

● They could have saved themselves a great deal of money.

● They could have implemented the system much faster.

● They would not have needed as many in-house programmers.

● They could have avoided a lot of hassles, headaches, etc.

● They could have "test-driven" the program to know what they were getting exactly.

● They could also have talked to other users to measure satisfaction with the software.

● Custom packages are much more likely to be bug-free.

● The developer can keep the package up-to-date easier and less expensive.

● They probably would have gotten a much better system.

c. Could the city have found software that met its needs? Why or why not?

There are certainly enough cities and a large enough market for quality software to be available. A city of 45,000
shouldn't have an overly complex system such that none of the available canned packages would have been
acceptable. The package might not have been able to meet all of the city's complex needs and desires, but a
package that came close to their needs certainly could have been found without all the problems mentioned
above.

The city can also purchase an adequate turnkey system. A turnkey system is a complete, ready-to-use solution
delivered to a customer or client. It is designed to be easily implemented and operated without requiring
additional components. The term "turnkey" originates from the idea that the customer simply needs to "turn the
key" to start using the system.

The turnkey system typically encompasses all the required hardware, software, and services needed to fulfil a
specific purpose or function. It is often provided by a single vendor or provider who takes responsibility for the
entire system, from design and installation to training and ongoing support.

Another option is to rent cloud-based software. Cloud-based software offers several advantages, including cost
efficiency, flexibility, scalability, and accessibility. Cloud computing provides businesses with more flexibility since
they can quickly scale resources and storage up to meet business demands without having to invest in physical
infrastructure or hardware. Cloud services are typically managed and maintained by a third-party service
provider, allowing IT teams to focus on other areas of the business. Cloud computing also offers greater
accessibility and collaboration since teams can access resources and applications anywhere there’s an internet
connection.
4. Critical thinking: A new software was created for May May Sdn Bhd with the purpose of capturing receipt photos and
automatically recording journal entries (Figure 3). However, the software frequently crashed and, in rare instances, caused
data corruption in the journal file. The management of the system development project was not handled properly. There
was no designated person overseeing the entire project, and a proper reporting structure was lacking. The project
manager resigned a few weeks into the software development, and there was a high turnover of in-house programmers.

To address these issues, external consultants were hired to help resolve the problems. Unfortunately, after two months,
the software development was abruptly halted. May May Sdn Bhd did not thoroughly examine the references of the
consulting firm they hired. The software had numerous programming errors, and the consultants refused to provide the
software source code to May May, presumably due to their fear of exposing their incompetence.

Figure 1: Process of automated receipt recording

Image source:
https://www.robustposts.com/2019/04/five-best-tools-to-create-scan-and-manage-receipts.html
https://www.accountingformanagement.org/cash-disbursements-journal/

a) Identify three (3) causes of system development failure in May May Sdn Bhd. Explain your answers.
Answer

Cause 1

Lack of management oversight.

Explanation

Evidence of this in the case study:

1) No reporting structure to manage the project.

2) No one was in charge.

The project manager resigned early in the project. 3) High turnover of programmers.

The first reason causes of system development failure was due to the lack of management oversight, as the case mention that there was no reporting structure to manage the project and not one was

in charge of it. The project manager resigned early in the project an there is a higher turnover of the in-house programmers.

Cause 2

Management falsely assumed that the problems could be solved by hiring a consultant.
Explanation

The problem with the project was internal and caused by poor management, supervision, and project management.

The management think that hiring a external consultant could improve the situation, however, the problem on that project was due to the internal issues such as the poor management, supervision
 and weak project management.

Cause 3

Lack of due diligence done on the outside consultation.

Explanation

When a consulting firm was hired, it does not appear that anyone checked out their competence, obtained referrals, or did any other due diligence concerning the

consulting firm.

Lack of hiring requirments

- the firm before hiring the consultant does not check or investigate the ability of the consultant before hiring which causes numorous errors and failure or refused to provide the source code to the

company.

Let the students discuss alternate reasonable answers.

b) Recommend and explain three (3) steps that May May Sdn Bhd should consider to design and implement the software
successfully.

Answer

Any three below:

• Follow a system development methodology. The methodology gives control and guidance on the deliverables of the project.

• Start and end the process with a designated manager over the project and with clearly defined lines of authority.

• Institute a formal review process for hiring consultants.

• Require change control documentation so managers can see the changes made during development.

• Assign a central manager for the project team who is the conduit for communication and decisions.

Let the students discuss alternate reasonable answers.

5. Critical thinking: Malaysian Plastic Packaging (MPP) is facing difficulties with its existing accounting information systems
(AIS). The current system is unable to handle the surge in orders caused by the Movement Control Order (MCO). The
MCO was imposed by the Malaysian government during the Covid-19 pandemic, resulting in job losses for some
individuals. Consequently, there has been a rise in roadside hawkers (shown in Figure 1) who are placing a significant
number of orders with MPP for plastic packaging used in takeaways (shown in Figure 2). To accommodate this increase
in orders, MPP is transitioning to a new AIS.

Figure 1: Roadside food stalls

 Figure 2: Plastic packaging sold by Malaysian Plastic Packaging

Image source:

https://says.com/my/news/no-more-roadside-street-food-stalls-in-kuala-lumpur-by-2020
https://www.malaymail.com/news/malaysia/2020/12/31/temporary-roadside-vendor-licences-one-month-in-critics-to-
programme-have-t/1936215
https://gzhheng.en.made-in-china.com/product/UOZETpucaGhH/China-Square-High-quality-Disposable-plastic-Food-Packaging-
Box-For-Apple.html
https://www.pinterest.com/pin/856317316630835446/

a) To expedite the new AIS implementation, MPP has requested your consulting team to postpone establishing standards
and controls until after the new AIS is fully operational. How should you respond to MPP’s request? Justify your
answer.

Response to MPP’s request

The consulting team should strongly advise the MPP that postponing standards and controls is NOT advisable.

Justification of your answer

Rather than save time and money, the company will probably 1) lose time/money in the future when 2) unanticipated
problems and weaknesses arise due to the lack of standards and controls.

b) Give and explain five (5) performance standards and control procedures that should be established for the new AIS.

● Internal control considerations must be taken into account when assigning job responsibilities.

● Job descriptions and work schedules must include the various control procedures.

● Performance standards associated with each position must be considered when selecting personnel to operate the
system.
● Documentation standards and data security provisions must be formulated before the system can be operational.

● Error checks must be built into all computer software systems.

● Procedures for guiding users and operators through the system and the various error conditions must be
established before the users and operators begin working with the new system.
● If the information system is not properly controlled, the information it produces will be useless. Controls must be
built into the system to ensure its effectiveness, efficiency, and accuracy.
● MPP should also consider scalability, whether the new software can cope with the business growth.

● MPP should also consider whether the new software is within MPP's budget.