System Documentation and Risk Analysis

Question: Discuss about the System Documentation and Risk Analysis. Answer: Introduction Even if an organisation is making a profit, it needs to manage its cash flows optimally in order to be successful in the long run. Cash management is centred on managing cash in a manner that the generally accepted goals of the company utmost profitability with utmost liquidity are achieved. The current paper revolves around JK Saddlery a maker and seller of saddlery. The report evaluates the manner in which the companys processes take place. Level 0 (logical) DFD for JK Saddlery A logical data flow diagram depicts how the company operates and its processes represent the business activities. This diagram is helpful in determining what information the system is receiving and what it is sending out. The manner in which the business processes interact with other processes is also identified through this diagram. A software named Computer Aided Software Engineering is usually deployed to draft the DFD. The use of CASE has several inherent benefits such as the implementation of non-standard information for each part of the diagram etc. (Arlbjorn, 2010) JK Saddlerys Logical DFD is illustrated below: Figure 1: Level 0 (logical) DFD Structured Narrative Table No. Entity Input Process Output 1 Cashier Sales order Yes/no 2 Cashier Stock ID Information check Yes/no 3 Cashier Bill number Bill Generation Credit or cash 4 Account receivable Cheque Depositing cheque in bank Entries Context Diagram Figure 2: Context Diagram Process Map A process map is essentially the visual explanation of the direction in which a processs activities flow. A process map basically contains a flow chart of the organisations main processes. When one reads a process map it should be from left to right or top to bottom and efforts should be made to minimise the reverse flow of the arrows so that the readers do not face any confusion (Damelio, 2016). The process map of JK Saddlery which is provided below seeks to offer a comprehensive overview of its operations and processes to determine improvements wherever there are bottlenecks. Figure 3: Process Map Assumptions made: The company carries out both physical sales through its retail shop and online sales through its website. JK Saddlerys main operations involve sales order request, completing the sales order, receipt of payment, management of cash and bank deposit. In online sales, the sales order is received on the website and immediately provided to the client. Payment made through credit cards by online customers is received directly in the bank account. Data Flow Diagrams Analysis The above figures demonstrate that when an order is placed by a buyer, the salesperson conveys this information to the cashier in the shop. Online orders are also communicated to the cashier. This is followed by preparation of sales order by the salesperson which contains the details of the product and takes it to the cashier for its final completion. The flow charts make it evident that the process flow is through the cashier to the management. Conclusion The above diagrams provide an overview of the processes and activities of JK Saddlery and it can be concluded that the company has a very basic system set-up and involves the main role of the cashier. References Arlbjorn, S. J., 2010. Business Process Optimization. Academica. Damelio, R., 2016. The Basics of Process Mapping. 2nd ed. CRC Press.