CIS/ ENGR 3281                                                                       Dr. D. G. Duncan

SYSTEMS ANALYSIS AND DESIGN                                         Fall, 2006

 

                                     

   SYSTEMS ANALYSIS AND DESIGN

HOMEWORK PROJECT SERIES

ON BIG WHEEL AUTO INSURANCE COMPANY

 

After completing this project series, you should have a better understanding of the information system. You should be able to apply the tools and techniques of systems analysis and design with minimal supervision. You should have better business and technical skills, and you should have better programming and systems development skills. Homework will provide you the opportunity to work with graphical software tools  and to sharpen your desk top publishing skills.

 

Assume you are a consultant to BWAIC and include a cover letter with all 5 homework submissions.  Do work that you will be proud to show your boss someday.

 

PROJECT MILESTONES to be completed include:

1. Project proposal request                                           (homework assignment 1)

2. Profile of current system                                            (homework assignment 1)

3. Information system development                              (homework assignment 1)

4. Data modeling                                                            (homework assignment 2)

5. Process modeling                                                      (homework assignment 2)

6. Database and user interface design                         (homework assignment 3)

7. Comprehensive project report                                 (homework assignment 4)

 

PHASE 1:

PROJECT REQUEST PROPOSAL  - prepare a request for systems services form for the Big Wheel Auto Insurance Company (BWAIC).  Also submit any relevant documentation or research material. 

 

RELEVANT BACKGROUND:

Big Wheel Auto Insurance (BWAIC) is a small company that sells auto insurance policies to licensed drivers in the state of Indiana.  The company headquarters are located in Speedway, Indiana.  The company employs about 150 people, most of which are insurance agents located at several different offices throughout the state.  BWAIC was established in 1991 and has grown to about 50,000 policy holders today.  Last year's net profit was $875,000.  Eric Roberts, the president of BWAIC has requested that the Information Services Dept. begin a study to determine if the current information systems support for BWAIC can be improved.  There are several reasons for his request.  First, due to changes in state law and federal regulations requiring minimum liability insurance, the number of policyholders is expected to increase drastically in the next several years.  There is concern that the present system is rapidly approaching its capacity.  Next, the amount of time to process customer claims against their policies has increased to an unacceptable average of 90 days.  Additionally, BWAIC would like to improve their customer service by offering special discounts on their policies for good driving records, non-smokers, students with good grades and senior citizens.  Mr. Roberts has also indicated that some of the older business processes are inefficient and may need to be redesigned.  He has stipulated to the information systems manager that all of BWAIC's data, which is currently stored in various types of computer files, be converted to a relational database management system.

 

 

PHASE 1 continued:

PROFILE OF CURRENT SYSTEM-define the scope of the system in terms of goals, objectives, policies and constraints, users, transactions, reports, decision support, and alternative solutions.

 

SYSTEM PROFILE

 

PEOPLE:  Affected people include the agents,  the customers, the Indiana Dept. of Motor Vehicles, various local police departments, and various local automobile body and repair shops.

 

DATA: BWAIC is interested in keeping track of policy holders who purchase insurance policies from agents for their vehicles.  Periodically, invoices are sent to the policy holders requesting payment.  At various times policy holders may files claims against their policies which may require several estimates.

 

ACTIVITIES: The activities that the system supports can be best described by identifying the inputs (data) that are processed into outputs (information).  This system processes the following inputs: policy application, policy payment, policy modification, policy cancellation, claim, estimate, and a police accident report.  Some of the outputs produced include an automobile insurance policy, a policy cancellation confirmation, addendum (modifications) to the policy, policy invoice, claim payment, policy card, vehicle registration request, driving record request, and a policy rejection notification.

 

Some of the reports to be produced include: Policy Master Listing, Claim Master Listing, Invoice Master Listing, Policy Holder Master Listing, Agent Master Listing, policies by Agent, Claims by Policy, Claims by Vehicle Type, Invoices by Policy, Policies by Vehicle Type, Rejected Claims, Policy Invoices Past Due, Rejected Policy Applications, Canceled Policies, and Claims Without Estimates.

 

The system should also provide the following queries for decision support purposes: Claims Against a Policy, Policy Query, Estimates for a Claim, Invoices for a Policy, Policy Payments Query, Claim Payments Query, and Policy Holder Query.

 

Several problems have also been identified.  First, due to changes in state law and federal regulations requiring minimum liability insurance, the number of policy holders is expected to increase drastically in the next several years.  There is a concern that the present system is rapidly approaching its capacity.  Next, the amount of time to process customer claims against their policies has increased to an unacceptable average of 90 days.  Additionally, BWAIC would like to improve their customer service by offering special discounts on their policies for good driving records, non-smokers, students with good grades and senior citizens.  Also, some of the older business processes for policy application and claims processing are inefficient and need to be redesigned.

 

 

NETWORKS: BWAIC does business in four primary locations: the speedway headquarters, the Corydon office, and the Waterloo office.  Also the Indiana Department of Motor Vehicles is linked into the policy application system.  The Speedway headquarters consist of the policy department, the claims department, and insurance agents.  The policy department communicates with the claims department.  Both the policy and claims department talk with the Indiana Department of Motor Vehicles in Indianapolis.  Speedway insurance agents talk with both departments.  Both the policy and claims departments also communicate with mobile Corydon agents and mobile Waterloo agents.  The Corydon office consists of legal department and insurance agents.  The legal department talks to the claims department and the personnel department.  The Waterloo office consists of the personnel department, the payroll department and insurance agents.  The personnel department and the payroll department talk to each other.

 

TECHNOLOGY:  Mr. Roberts has stipulated that all of BWAIC's data, which is currently stored in various types of computer files, be converted to a relational data base system.

 

INCORPORATE THE FOLLOWING ISSUES INTO YOUR DISCUSSION:

1. Briefly describe the problems and opportunities that triggered this project.

2. Briefly describe the purpose the business application serves, and list business goals and information system objectives to be directed toward those goals.

3a. What are the business or system polices that must be conformed to or which may constrain the information system solution? List them.

3b. Identify the system's user community and briefly describe their roles or interest in the system. Include direct and indirect users.

4. List the capabilities and support the system will provide.  Information system capabilities can be categorized as inputs, outputs, and decision making opportunities.

5. You have already identified three building blocks of your information system:  people, activities, and data.  Also, all business systems use networks, that is, the distribution structure of people, data, activities, and technology to business location and the movement of those building blocks between those locations.  Remember each floor, each office may be a different business location.  Describe the business network.

6. Current technology already supports the other four building blocks of the existing business system.  You may design new technology to support various aspects of the new information system later in the project.  What hardware and software is being used to capture, store and manage data?  What hardware and software is required to support the information systems activities described earlier?  What communications technology is used to interconnect data and process technology at different business locations described earlier?

 

PHASE 1 continued:

INFORMATION SYSTEMS DEVELOPMENT - propose a systems development procedure for your project. Include systems planning, systems analysis, systems design, systems implementation and systems support. Present information using a letter of proposal, which includes line items and rough cost estimates, a summary of the systems development process, management concerns, and a Gantt chart.

 

HOMEWORK SET 1 DELIVERABLES:

PROJECT PROPOSAL REQUEST using systems services form; attach any relevant research, documentation.

PROFILE OF CURRENT SYSTEM:  Summarize (1) what system BWAIC has currently and (2) what additional needs the new system should meet. Include cost line items, the systems development process and management concerns.

OUTLINE THE SYSTEMS DEVELOPMENT PROCEDURE TO FOLLOW in development of the new system.   Try to prepare and attach a simple GANTT chart.

COVER LETTER.


 

PHASE 2:

DATA MODELING - draw entity relationship diagrams to describe the data that the system must store and the relationships that exist between the data. Use graphics software.  Also prepare a legend in table format which includes the entity name, unique identifier and description. Write a brief narrative to walk a non-computer  person through your entity relationship diagram.

 

Data items may include:

Agent name

Agent number

Agent office street address

Agent office city

Agent office state

Agent office zip code

Agent phone number

Application date

Application status

Car license place number

Car license plate state

Car license plate year

Car make

Car model

Car style

Car year

Claim amount

Claim date

Claim description

Claim number

Claim payment amount

Claim payment date

Claim payment date

Claim payment explanation

Claim rejection reason

Claim status

Claim type

Coverage amount

Coverage code

Coverage description

Date of accident

Date of policy cancellation

Description of accident

Driver street address

Driver city

Driver state

Driver zip code

Driver license no.

Driver name

Driver phone number

Estimate amount

Estimate company name

Estimate description

Invoice amount

Invoice amount due

Invoice date

Invoice date due

Invoice number

Invoice number

Payment amount

Payment date

Place of accident

Policy effective date

Policy cancellation date

Policy cancellation reason

Policy effective date

Policy expiration data

Policy holder street address

Policy holder city

Policy holder state

Policy holder zip code

Policy holder birth date

Policy holder drivers license number

Policy holder employer

Policy holder gender

Policy holder home phone number

Policy holder marital status

Policy holder name

Policy holder number

Policy holder occupation

Policy holder work phone number

Policy number

Policy officer badge number

Policy officer name

Policy rejected date

Policy rejected reason

Policy type

Reason for cancellation

Time of accident

Vehicle identification number

Vehicle type (make + model + style)

Weather conditions

 

 

 

 

 

HOMEWORK SET 2 DELIVERABLES:

DRAW ENTITY RELATIONSHIP DIAGRAMS to describe data the system must store and the relationships between the data.

PREPARE A LEGEND in tabular format that describes the entity names, unique identifiers and description.

PREPARE A NARRATIVE to walk a non-computer person through your ER diagram.

COVER LETTER.


PHASE 3:

PROCESS MODELING - draw a decomposition diagram and a leveled set of logical data flow diagrams to describe what processes must be performed on the data in the new system in order to produce the desired information.  Use graphics software.  Also write a brief narrative to walk a non-computer person through your data flow diagrams.

 

 

RELEVANT BACKGROUND:

BWAIC insurance system can initially be broken down into two subsystems, policies and claims.  Each of these subsystems has four components:  transaction processing, management reporting and decision support, and data maintenance.  Policy transaction processing can be further factored into four input transactions: an insurance policy application, an insurance policy payment, a policy modification, and a policy cancellation.  Policy management is divided into detail reports, summary reports, exception reports, and query responses.  Four detail reports are: policy master listing, invoice master listing, policy holder master listing and agent master listing.  Three summary reports include: policies by agent, invoices by policy, and policies by vehicle type.  Three exception reports include: policy invoices past due, rejected policy applications, and canceled policies.  Four query responses include policy query, invoices for a policy, policy payments query, and policy holder query.  Claim transaction processing consists of only one primary input transaction:  a policyholder claim. (The estimate and the police accident report are both secondary input transactions necessary to complete the processing of a claim.)  Claim management reporting is not divided into separate detail reports, summary reports, exception reports, and query responses due to an insufficient number of reports.  Claim reports and queries include: claim master listing, claims by policy, claims by vehicle type, rejected claims, claims without estimates, claims against a policy query, estimates for a claim query, and claim payments query.

 

For a policy application, the application is recorded and stored.  Then a vehicle registration request is sent to the department of motor vehicles to confirm that the applying policy holder is the owner of the vehicle.  When the vehicle registration arrives, the registered owner is compared to the policyholder.  If they do not match, a policy application rejection notice is sent to the applicant and the application status is changed to reflect the policy rejection.  If the owner is confirmed, a driving record request is sent to the local police department to obtain information about arrests, citations, accidents, etc.  When the driving record is received, it is evaluated against a set of company standards and classified as either acceptable or unacceptable.  If the driving record is unacceptable, a policy application rejection is prepared as described above.  If the driving record is acceptable, a policy is issued and sent to the policy holder, and various policy holder, vehicle, policy and agent data is updated.  Periodically, all active policies are processed in order to generate policy invoices to be sent to the policy holders.

 

For a policy modification, the policy and policy holder are first verified.  A refund or balance due is calculated and either a refund or an invoice is sent to the policyholder and the policy is modified.

 

 

For a policy cancellation, the processing is exactly the same as described above except the policy is canceled (instead of modified), the vehicle and any claims, estimates, or invoices are deleted, the agent modified, and a refund is calculated and sent to the policyholder.

 

For a claim, the claim is recorded and stored.  Next, the matching policy is found and a determination is made as to whether the claim is covered by the provision (coverages) of the policy.  If the claim is not covered, the claim is rejected, the claim status modified and the policyholder notified of the claim rejection.  If the claim is covered, the claim is checked for a minimum of two accompanying estimates.  If the estimates are missing, a pending status is recorded for the claim and the policyholder is notified to obtain the necessary estimates.  If the estimates are included, the claim type is determined.  If the claim involves a collision with another vehicle, a police accident report request is sent to the police department, and the status of the claim is modified. When the accident report is received it is determined whether the  policyholder was at fault (or charged) for the accident.  If the policyholder was not charged or the accident did not involve a collision, a claim payment is generated and sent to the policyholder, and the claim is updated.  If the policyholder was charged, a claim payment is still made as described above, but also the policy is updated to reflect an increased rate for the next invoice.

 

HOMEWORK SET 3 DELIVERABLES:

DECOMPOSITION DIAGRAM.

LEVELED SET (first level) OF LOGICAL DATA FLOW DIAGRAMS.

NARRATIVE -to walk a non-computer person through DFDs.

COVER LETTER.


 

PHASE 3:

DATA BASE DESIGN

 

DATA BASE DESIGN:

Previously it was specified that a relational database management system be used. 

Draw a logical schema depicting the database’s structure.  The logical relationships between logical records should be clearly shown on the schema. Document the content and internal structure of logical records in the database using data definition language and record layout charts.  Include sample attributes and normalized entities.

 

Comment on how you would proceed to design user interfaces such as an input screen and output report.

 

HOMEWORK SET 3 DELIVERABLES:

 

DATABASE SCHEMA.

USER INTERFACE SCREEN FOR INPUT

USER INTERFACE SCREEN FOR OUTPUT

DATA DEFINITION LANGUAGE WITH SAMPLE ATTRIBUTES, ENTITIES.

NARRATIVE  describing user interfaces and output report.

COVER LETTER.


 

PHASE 4:

COMPILE COMPREHENSIVE PROJECT REPORT

 

Prepare a portfolio of your big wheel insurance case project to show to a prospective employer.  Develop a comprehensive technical report that packages homework assignments one through five. You are encouraged to fix errors and improve upon what you originally submitted.  Include a cover letter to your client, an executive summary, table of contents, and, optionally, a copy of the homework assignment in the appendix. Number the pages and bind in a folder with a transparent plastic cover. (The handout can be downloaded from Blackboard or from Prof. Duncan’s web site.)

 

HOMEWORK SET 4 DELIVERABLES:

Project report comprised of:

COVER LETTER

TABLE OF CONTENTS

EXECUTIVE SUMMARY

PROJECT PROPOSAL REQUEST

PROFILE OF CURRENT SYSTEM

INFORMATION SYSTEMS DEVELOPMENT OVERVIEW

DATA MODELING

PROCESS MODELING

DATABASE AND INTERFACE DESIGN

APPENDIX:

-COPY OF HOMEWORK HANDOUT

-REFERENCE MATERIALS

-ANY OTHER RELEVANT MATERIALS

 

 

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